, 1875-01-04
TIE PUBLIC DEBT STATEMENT.

IAe HhtlunIF teDt h{HLeIA6llL hnOHH lnhL
the Government revenues ran behind the OK
renditurcs $s;'.GI',aG7 in the month of
December, which ],ns reduced the total de-
crease in the p,hlic debt for tho sir months
Of tho current fiscal year to 3iS9.03e.
Though this is n very material falling-ofF, it
could not have been unexpected. 1t liz, rs q
matter of courso the direct result Of de-
cline in revenue an1 this decline is the
direct result Of hard times. When the panic
can,e, something moro than n year ago, pco-
pIo began to retrcnch both in their business
and in thoir family expenditures This re-
trenchment slowly but surely affects Tho
revenues Of tho Government, mainly in the
decline Of customs duties. It can only be
mot in ono Of two why's, either (1) by in
creased ta1atiou, or {o) by reducing e1-
pensos.
The second Of these meth otls-reducing
expcnscs--is the true remedy. The first is
m exercise Of m exclusive power which
could not be brought into play by n private
person. When tho business man finds that
his income is falling of and his debts in
crensing, his only recourse il i'll the reduction
Of lis expenses. He cannot levy taxes onhis
customers. This is the rule the Government
ought to apply in similar case. It is not
as though VIC were experimenting in tho mat
ter. We know TINT tho number aud amount
Of taxes now levied are sufficient in good
times to produce great surplus if they fall
short in had timea, tho shrinkage in the
business Of tho country must be met by
Bhrinkage in tho expouses Of tho Government.
As the deficit is brought about indirectly by
individual rctrenchment, it must bo met by
public economy. If this principle had been
recognized as fully and as early by the vari-
GUS Government departments rs it was by
wiae md judicous business men, there would
not have been m increase in the public debt
Of three md half millions in single month.
There aro only two Of the general Ex-
ccntivo Departments in which economy and
projects for retrenchlnent have been in-
augurated Oil o scale commensurate with tho
necessities Of the case. These are the
Treasury md Post -0nico Departments. MIR.
BR.srow began his official career by cutting
down expenses, and there is reason to believe
that ho will continue in this direction. Post
master-Genernl JEWELL has announced that
ho will be able to reduce the expenses Of his
Department from $4,000, 900 to 81 1000, 900
yeHr, and hes practical projects for realizing
this expectation. But wo do not hear similar
reports from the War Department, nor the
Navy, nor the Interior, oil Of which (anl
particularly tho last) might contribute equally
with the Treasury and the post-O -Olticu Depart
ncnts to the general plan Of rotrenchuent
In tho nrmy, tho cutting process should
begin above tho rank and flo. In
tho Navy, tho increased expenditures
ordered Mt tho time Of tho virginius
complication should be stopped vheru
they are. In tho Interior, especil attention.
should DO directed to the Inditn CONTRACT.
system. Everywhere there 6hoald DO tbs
same effort at economy which district indi-
vidual would exercise u:-der the samo co1di.
tions.
There is but one thing TINT might be doue
in the wny of increasing taxation, and that is
to restore the duties on ten and coffee. The
low duties which existed before the repeal
8 cents on coffee and Is cents on tea-would
yield rovanue Of about S12 ,0o0, 600 year.
They onght to bo restored, not on account Of
the present deficiency, but because they ara
duties for revenue purely and ought never to
havo been taken of. The amount which
they would yield to the Government should
be turned over to the Sinking Find, in order
to keep good tho pledges heretofore made,
thus leaving the deficit in tile revenue to be
Offset by tho reduction in expenses
In some respects, the late increase in the
public debt will be Of benefit to tho country.
The vast nmount of surplus which has been
devoted TO decreasing the public debt within
the lust few years Inns encouraged c1trava-
gance in all the branches Of the Government,
aud indicated prosperity which was falla-
cious enough to betray the people into an
overweeuing confidence. If a temporary sus-
pension in the rapid progress VIC were making
toward extinguishinS the public debt shall
bring people back to their senses. and induce
the vnrious Departments Of the public service
to reduce their expenses to tho standard Of
private business prudence, the temporary in-
crease OF debt will be Of moro service than
harm to the country.
CREDIT MoDuIER-PA0IFIuM MA1.