The New York herald., 1874-01-09
The Departments Oawiuing 20 He.
trench-The Duty OF Congress.

| Aeo-Aoo O0ty OA OOm8rooss
The various departments of the government
have overlooked their estimates, in accordance
with the resolution of the House of Represen
tatives of December Is calling upon them tc
do so, and the President has sent their replies
to the Speaker of the House. Some small
reductions are reluctantly made but there is
no disposition to make such retrenchment as
Is needed and as the people and their repre-
sentatives in Congress expected The duty OF
Congress is plain now. With that body rests
the responsibility of making the expenditures
conform to the revenue, without increasing
taxation or augmenting the debt by an addi-
tional Issue of government notes.
| In order to give our readers a clear under
| standing of the financial condition of the gov
ernment and its expenditures and demands we
must revert to the report of the Secretary of
the Treasury at the meeting of the prese mt
! Congress last month, and endeavor to put in
an Ineligible shape the rather mystifed
figures of that document. The Secretary did
not put the estimates of the fiscal year from
June 80, 1873, to June 80, 1874, in lump,
but takes for his exhibit the first quarter and
then the remaining three quarters separately.
Putting them together we find the civil and
miscellaneous estimated expenditures, in
cluding public buildings, lighthouses, and
collecting the revenues to be $66, 577, ,293;
for Indians, $8,5OS,7l5; for pensions,
$50, 47S 156; for the military establish
ment including Notifications, river and
harbor improvements and arsenals, $47,-
1850 for the naval establishment,
including vessels and machinery and improve
ments at navy yards, s27, 792, 451. In addition
to these sums there is set down 81, 100, 900
for foreign intercourse. This gives for the
current expenses of the government inde-
pendent of interest on the public debt,
1882, 251 ,668. The interest on the debt
| is near about hundred milions-that is,
on 81, 21S 729, $50, at six per cent in gold,
s73, 123 698, and on $503, Ats, ,8OO at five per
cent in gold, $25, 173, $40, and in addition the
small amount Of interest on the three per cent
Navy Pension fund and the four per cent certif-
Gates of indebtedness. Let us say, then, in round
numbers one hundred millions for interest on
the debt. This, added to the 1882, 251, ,668 for
current expenses, makes total Of 1882, 251, $685.
The interest on the Pacific Railroad
bonds amounting to nearly four millions,
must we suppose, be added, though it
is time the government should close that
expenditure and either make the railroad pay
its interest or sell out the concern to the high
est bidder. This is burden that ought not
to be imposed upon the people. We suppose,
too, that the amount required for the sinking
fund, which is estimated for 1875 at
s29, ,918 856, is not included, unless, indeed, it
is covered up in the miscellaneous and other
confused figures Presuming this to be the
case, and including the interest on the Pacific
Railroad bonds, the revenue required for the
fiscal year of 1874 amounts to little over
S3l6, 900, 600. The Secretary's estimate fol
1S74-75 is 1919, 1913, 1876. For the first quarter
of the present fiscal year the receipts from all
sources were $S1, 1853, 492, and the estimated
receipts for the other three-quarters were
S1S7, 100, 900. The total is S268, 953, 1872 Te
this must be added the premium on the sales
of gold, which for the year will hardly
amount to more than five or SIX millions.
Thus we see that the actual and estimated
expenditures exceed the income forty millions
to forty-fve millions of dollars at least. People
may wonder how Mr.. Richardson has been
able to go along with such state of the
finances. Well, he had, fortunately, large
surplus of money on hand and the fifteen mil
lions of the Alabama payment to draw upon.
Had there been no panic he must soon have
come to the bottom of the Treasury. The
panic afforded good excuse to cry out for
help and to cover up his incapacity and mis-
management The payment of the called loan
and other demands upon the Treasury have
suddenly exposed his bankrupt condi-
ton. Of course he had to draw upon
the legal tender reserve, and of course the
debt has been increased the last month. Well
might he plead for forty millions additional
taxation. Never before in the history of the
financial management of this country has there
been such blundering and want of ability ex-
hibited With the enormous revenue col
lected there ought not to have been q
deficiency or any embarrassment. Yet the
Secretary could not see that the vast and un-
necessary expenditures and extravagance of
the government were the cause chiefly of his
difficulties He never thought Of reducing the
estimates till forced to do so by the resolution
of Congress. And now what q miserable
attempt at retrenchment he and the depart
ments have made.
The Postmaster General reports that after
carefully examining the estimates of his de.
partment again he finds no reduction in the
sums which can be safely made The largest
amounts required are for inland mail trans
portation, s15, $50, O21, and for compensation
of postmasters, s6,5OO,OOO The increase
asked for, he says, in the former of these
items is less than five per cent, while the
average yearly increase in that branch of the
service is over eleven per cent. The Other
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