The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-11
GarAeld's Reply to Dawes-simply Pile
ON the Taxes.

Mr.. Dawes based his appeal for retrench-
ment upon the point that our national ex-
penditures are constantly increasing, and that
the demands of the government for each
year are constantly greater than those
for the previous year, and in sup
port he showed that the estimates of
appropriations for the coming fiscal year
1S745 were marked increase upon the
actual expenditures of 1925, and the actual
and authorized expenditures of the current
year 1874. He even went so far as to pre-
diet a deficit in case these estimated expendi-
lures for 1S74-5 were authorized by the pas
sage of the appropriation bills now before
Congress.
1t is to this speech that Mr.. Garfield es-
sayed reply. And what is the gist of this
reply? That Mr. Dawes allegation of in
creased and increasing expenditures was not
true that the general fiscal burdens of the
country were not becoming unbearable; that
the exigencies of party were not to be con-
suited before the welfare of the people
Nothing of the SORT Mr.. Garfelds reply is
that Mr.. Dawes fears of deficit are IN
founded. That is absolutely all there is in it.
He does not deny the increase of expendi-
lures he merely says that he believes there
will be found money enough in the Treasury
wherewith to meet them, and adds that in
case there is not it is the duty of Congress to
provide revenues sufficient to counterbala nee
the expenditures, no matter how great they
are
Previous to the war the entire ex-
pense Of government in this country
was about $780, 100000, gold, per annum,
equal to about 81 80 per capita. This
included federal, State, county, township,
municipal and all other public expenditures.
These expenditures rose to about ST per capita
in 1862, $40 so in 1863, SIG in 1864, $1S in
1865 and $40 in 1865, reckoning always in
gold The State and local revenues had
reached S35O,000,00 currency, per annum,
and the federal revenues over 5000, 000 600,
currency. Taxation had reached its highest
limit the people were well nigh exhausted,
and return to more economical budgets
became indspensably necessary. Accordingly
the State and local taxes fell until, in 1870,
according to the census, they were but
$2SO,OOO,0O0, currency. They are now proba-
bly, not any less /; possibly even more. Includ-
ing the proceeds from sales of captured
and abandoned property, military and
naval stores and other materials the expendi-
lures of the federal government were as fol-
lows, in mixed money :-1S66, $576, 900, 900 I;
1867, $4S3, 900, and 1868, s477,OOOOOO.
1t was at this juncture that, in view of the
threatened increase of expenditure in 1869 and
1870, the financial exposition of 1868 ap-
peared. In 1869 the expenditures were but
1851, 100000. From this point they rose in
1870 to 1882, 100000, mixed money; and here
MIR. Dawes made his first stand against public
extravaganza. In 1871 they fell to
s451, 100000. BY act of May 20, 1872, there
occurred such change in the arrangement of
the accounts as to render further comparisons
inaccurate, but enough is seen SO tar to prove
that whenever public attention or the efforts
of fnanciers are averted from the expendi-
lures they have a constant tendency like
weeds in neglected field, to spring up again
and increase.
Many of the expenses arising out of the war
such as the pay Of volunteers draft and sub
stitute payments, Freedmens Bureau, refunds
of advances made by the States &c.-had
now ceased altogether and the taxes to sup
port them were cut down. In 1872 the net
expenditures, emitting the disbursements of
the proceeds from sales of government
property aud some other items, were s377,-
100000, and in 1873, $309,0O0,OOO. The
former sum included $1O7, ZOO, 900 on account
of the principal of the public debt; the latter
$24, O00,OO0 The expenditures were again in
creasing. The weakness of the Treasury and
the disturbance of commercial credit conspir.
ing to render the policy of further
iquidating the debt impracticable, this
policy was abandoned, and the fiscal
year of 1884 opened a new era in fed
eral expenditures. They were now to be
free from any payments on account of the
debt, except perhaps, the sinking fund,
amounting to S29,O0O,0O0. The estimates for
1894 footed up s3OS, 900, 900, including
$29, 100000 for the sinking fund. These ex-
penditures were substantially authorized by
Congress, 1906, 900 being granted. Before
the year was half out the Navy Department,
during the Virginius excitement applied for
and obtained an additional appropriation of
several millions Here was increased expendi-
ture to q very considerable amount, the expendi-
lures for the current fiscal year being estimated
at 1921 100000 As if to cap the climax, the
estimates for 1915 were shortly afterwards
laid before Congress, when it appeared that,
instead Of being less than 1894, the expen-
ditures proposed were to be still greater-viz,
1919, 100000, including $29, 0O0 900 for the
sinking fund. 1t was at this juncture, and
with reference to this alarming fact, that
Mr.. Dawes made his second appeal to Con-
orrocs in favor of retrannhrnnpf