The Portland daily press., 1874-02-03
New York Letter.
Congress and the s-TnxatiOn not
Increase Of Debt the True POIicy-infa-
ton again-Warninx against a Watered
Currency-Erce Banking.
New York, Feb. 1, 1874

of the 10 III piO-iSso, duu Inc NOtstIitS
of imitation are having it all their own way.
The encroachment upon the legal tender re-
serve began before the session opened, hariug
been rendered necessary by the falling off of
Treasury receipts consequent upon the stagna-
ton of general business, which resulted from
the panic This continual outflow of promises
to pay, which had been withdrawn from circu-
latiou, and the reissue of which was protested
ly deprecated by every conservative man in the
country has attracted far less attention and
created far less alarm than the gravity OF It's
perils to the national credit entitled it to- 1t
involves an increase of the public debt of the
most Objectionable form, and violates every
correct principle of political economy. 1t pro-
vides mode of relief for deficient exchequer,
which will not only prove evanescent, but GER
tain to lead to future embarrassments, of
most serious nature. The fact has been demon
strated, that the legitimate expenditures of the
government exceed its reliable current income.
In its laudabe desire to tighten the burdens of
taxation, Congress has reduced the imposts too
much. 1t is the province of enlightened states
manship to correct the mistake with the ut
most dispatch. An increase of taxation is the
supreme responsibility which now devolves up
ON the representatives of the people 1t is not
pleasant duty. Legislators naturally shrink
from the imposition of levies upon their con-
| stituents History is full Of examples of the
| exten. TO which great nationalites have been
buried under mou ntains Of debt by unwise rul-
ers who have resorted to precisely such expedi
ents as are popular just now among certain
ella sses in our own land, for putting off the day
of payment. This easy-going financial policy
ha, found in our own generation two notable
champions in Louis Napoleon and "BilP'
Tweed, Without, perhaps, having anything
else in common, both of these ''nabobs for an
hour" were cunning enough to understand that
| the ouly true way to plumber people without
| mourning their wrath, was to raise money on
| their credit. And SO the one in his great, the
other IN his little principality made the taxes
| light, the borrowing heavy, and both maintain
ed for while imperial sway. But each became
in his turn an object of execration, such states
manship not possessing the qualities which
enure to the permanent renown of those who
practice it.
Practically, the financial issue lies in mar
row compass. There must be an increase of
taxation or of debt. There are to be sure many
eminent public men who profess to believe that
policy of retrenchment may be inaugurated,
which will obvate resort to either of these
alternatives but unfortunately they are unable
to point out anyway in which a material saw
ing can be effected, without injury to the pub
lie service. There are no huge schemes on
foot involving large outlays, the suspension Of
which could be ordered on the instant. The
works in progress must be FASTENED to compile
ton. They are needed. The failure of the Ma.
val appropriation has already provoked an ear
nest remonstrance from the Representatives
whose constituents are most Immediately affect
ed by it, Every other suggestion for saving by
cheese pairing policy will meet with deter
mined and probably successful resistance. So
long as the government receives fair equiva-
lent for its disbursements so long as there is
no actual squandering of money, popular senti-
ment will run in favor of a liberal rather than
a. paIsrmouUusscaru OF expenditures Besides,
the discontinuarce of enterprises, already be-
gun, saves nothing. 1t merely delays the day
of payment. 1t subjects the government to
the humiliation of asking an extension. Moth
ing in the situation Of the country, justifies a
resort to SO dubious an expedient, and it will
not bear the test OF intelligent criticism.
Any considerable reduction of appropriations
being virtually out of the question we are con-
fronted with the two Propositions which may
fairly be set down as making the dividing lines
between contraction and initiation. Without a
substantial addition to the receipts of the
Treasury by the imposition of increased taxes,
q currency imitation, with all its concomitant
evils cannot be avoided. 1t may be shorn of
some of its elements of mischief by the
oufh izafio of n mr. fol tho
gravated shape of an enlargement of depre-
ciated circulating medium. There is a wide
measure of difference between these two sys-
TENS of Indebtedness. The first is simply an
act of improvidence which may be repaired by
subsequent prudence and frugality. The adop-
ton of such a course will not deprive us of the
opportunity of doing at future day, what it
would be so much easier and wiser to do now
But an initiation of the currency has no re-
deemipg feature. 1t substitutes artificial for
real values, stimulates unhealthy speculation,
creates great indy of trafickers in the pro-
ducts of thecountry, through whose hands they
must pasta toll being levied at every change
of ownership-tll they reach the consumer
and gives not merely to capital, but to credit
always uuduly cheap uuder paper regime
an adventurous superiority over labor.
And Jet what do we see? The sturdy hus-
bandmen of the imperial West, aye even the
growers of cotton inthe teeming South, striking
hands through their representatives in both
houses of Congress with the stock jobbers and
adventurers of every section of the country to
perpetuate AMI intensity a financial policy
which impoverishes the former for the
benefit of the latter. There is not a hui
man being in this broad land, who de-
rives his subsistence from actual indus:
try-whether he is employed in tiIlir the SOIL
or engaged in mechanical pursuits-whose in
terests will not be essentially promoted by the
speediest possible restoration of the nation to
specie basis. Every such man ,reases proper
ty, and it is indispensable to his prosperity that
it should be measured by stable and accurate
standard 1t is an axiom of universal accepta-
ton that the nearer producer and consumer can Il
be brought together, the better for both. The |
natural laws of supply and demand will regu-
late this matter we'll enough, if their opesation
is not thwarted by indscreet legislation. But |
the inevitable consequence of an excessive SUM- |
ply of something which performs the functions
without possessing the intrinsic worth of mon !
ey, is to make every useful commodity an OBJ |
ject of speculative distribution, and all such
transactions are carried on at the joint expense
of the first seller and the last buyer. At least,
this is the case, until the mania for trade reach
es its extreme point, and there comes panic,
a crash, innumerable failures and general |
liquidation. But even then, it is not the men |
who tail that suffer, but their creditors. The |
losses are spread in all directions, and the most
cautious cannot always escape them.
There is one consolation about panic. 1t |
uoss not destroy property. 1t simply causes |
change OF proprietorshp The country was as |
rich after the great revulsion as it was before.
Houses and lands and merchandise. did not
count for as many dollars as thew f,rmerlv hod
but they were all in existence lust the save
Something was lost no doubt by the Interim
of industrial avocations, tut much of this kind
of loss ,-which may more fairly be stated as |
hindrance to further gain-was occasioned by |
the necessity of readjusting the various depart
ments of labor. so that such as had been rem |
dereds unremuneratlve, by over production |
might be curtaed in SO far as was requisite to |
make them reasonably profitable.
But there was one item of genuine profit. |