The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-02-24

Mr.. Garfield, Of Ohio, asked Mr.. Dawes
whether, in his statement ofthe resources of
the treasury, he had included any part of
the 100000 OF retired notes, improperly
called a reserve fund, some Of which had
been reissued.
Mr.. Dawes replied that the forty-four mil.
lion reserve, and the use made of il by the
secretary OF the treasury, had not entered
into his calculations. Hewas showing what
had become Of the sixty millions on hand at
the beginning of the fiscal year, forty mil
lions of which was in coin. The secretary of
the treasury, finding his balance running
low, had, instead of paying ont that coin, paid
out part ofthat S44, OO0, 600, and had kent that
coin in the treasury to answer forthe portion
of the S44, 0O0, 900 he had paid out. But when
he had run down so low that he dare not re-
tain the coin TO answer for every dollar of
the SA,0OO,000 he had paid ont, he increased
the Indebtedness of the government, as ap-
peared in the monthly statement. to the
amount of Sl1 1000, which. however, ne
had subsequently been able to reduce TO
$4,000 600. The deb would have been in
creased to the extent of all the 1000 900
reserve had it not been for the fact that the
secretary, instead of paying out the coin,
had retained the coin and
PAID U THE PAPER.
He (Mr. Dawes) did not mean to say that
starting from the first of July, the debt
had been increased $4,000, 900, but that from
the time the secretary ceased reducing the
public debt up to this time, the increase was
some S9,OO0,00O. Taking the aggregate from
the lst of July, there had been more OF a
decrease than of an increase of the public
debt, but what the amount was he had not
now in his mind. The whole value of his
statement depended on two things, the relia-
blhty of the estimateSof the receipts of the
next i've months, and OF the expenditures.
and therefore he desired TO cali the attention
OF the House to the reliability of both of
those statements. The receipts of the first
seven months of the fiscal year, 1872. il COM
pared with the corresponding months of |
1861, were as follows: For 1928, customs,
Sill 900 1000; add internal revenue, S67. OOO.-
600; total, Sl7S,S42. $50. For 1873 A. customs. |
s93,OOO,OOO add internal revenue, S57, 900, 900;
total, s!oO,oZl,OS4; showing a falling off in
the receipts OF the present year from those |
OF last year of S2S,3l5, 702. The comparison
OF receipts tor the last fiscal year with the
estimated receipts for the coming five
months of this fiscal year were as fol-
lows; 1873, receipts of last five months,
sl27 10000; and 1871 estimated receipts
for the next five months SII6. 600
w: making a falling of in that period of ST.
5l6,z7o. IL the house agree with me that the |
treasury is liable at any moment to 60 to pro-
test, unless it can have a margin more to be re-
lied upon than this less than, 100000 then
charge our duty unless we, as the law-mak-
ing. power. pass some measure by
Which, 10 increase that margin. OF course
may be done by increased taxation, by a loan.
or orr ey = rhe &c cutting down Of expenditures. Unless
sorted to, and resorted to in earnest, we, who
have the credit OF the treasury OF the United
Statesin onr keeping, holding only the secretary
of the treasury and the administration to a faith
full discharge of the laws which we make, shall
nave Jailed In the discharge OF out duty. 1 need
not to say to this committee that it is our duty
TO resort TO one of these three measures, which
we know will be the most productive
Or ROOQ 10 The country and To
the treasury, and will reflect the
greatest credit upon as who have that man
by increasing taxation? There has never been
an instance in the history of this government
posed for the purpose of carrying on its current
expenses. IL, to-day, we resort 10 this measure
or taxation, it will be
THE FIRST TIME IN THE HISTORY
OF the government when we have imposed taxes
on the industries of the country for the purpose
of meeting our current expenses. We are emery
ing by degrees from asystem of taxation imposed
under overwhelming necessities, involving the
life of the nation. which the people bore patient
Iy and manfully and bravely, because OF the ne
c~essities. At this time / feel that nothing would
be such a disappointment to the whole indus
trial interests OF the country as the increase
of the burdens of taxation Just as these in
dustries are lifting themselves up out of a de-
preston unparalleled for its suddenneSs and
severity. think we must make up our
minds to abandon the idea OF increased taxa
ton. wish to do this, Notwithstanding know
that when we took off the s25,OO0,00 OF tax on
tea and coffee that the act did not reduce the
price for the consumers of either articles one
helf-penny, the whole of it being divided be-
sale dealer at the other. But il we put on a tax
to-day, it Is necessarily putting so much on the
the imposition, even of this tax, although I was
opposed to its repeal at the time it was repealed, |
unless should fail TO find some other way out
of the position in which the treasury is at pres
ent. Shall we resort TO a loan in time of peace,
of substantial prosperity, with no sudden de-
mand on the treasury? Have we no other way
of meeting our current expenses but borrowing
money? Shall we say to the nations of the earth
which are holding our securities, and are invited
by a standaEd law of the land to take our bonds
at five per cent, that such is the condition of our
treasury that we can only pay the interest on
these bonds and meet our current expenses by
borrowing? | can think of nothing so fatal TO
the credit OF the nation, not only abroad but at
we have no other wav 10 meet the current and
ordinary expenses of the government, but by
borrowing from day to day; that is, meeting our
bills Dy making more.
Mr.. Maynard asked Mr.. Dawes if he did not
a loan had been resorted 10 to meet the expenses
of the government.
lIMr. Dawes replied that never but once or
twice in the history of the government had it
ever found itself compelled, in time of peace,
to borrow money to pay its expenses. That
condition of things had arisen in Mr.. Buchan-
ans administration, and the government had
been compelled to borrow 20, 0O0, 900 on bonds
having sixteen years to run and the govern
that borrows money to meet their current ex-
penses, and had been compelled to pay these
bonds when il was the least prepared to do
it, His democratic friends would bear
with him if he said that was one of the evil
dences OF
DECAY OF THE PARTY !
which had administered the government sub
stantialy for fifty years. 1t showed that the
party was then becoming effete and was dying
of the dry rot. That administration had come
into power with SIS, 10000 cash in the treasury,
and had gone out with a debt of sixty-cdd mil
lions, having had no demand upon it but its cur
rent expenses. Since that time, with the ex-
ception of the interregnum ofAndrew Johnson,
the affairs of the government had been in the
hands of the republican party. But the other
side was now watching them, discussing the
publican artyshouldf fall into the same error and
meet the same fate. He assumed, therefore, that