, 1875-01-04
THE PUBLIC DEBT BTATEMENT.

the Government revenues TAn DeulHu 1Ile tA"
retsditures :s:lG1l,9G7 In tho month Of
December, which 1lns reduced the total de-
crease in the public debt for the six months
Of tho current fiscal year to sis9,999.
Though this il very material fal1ing-oI, it
could not have been unexpected. It is, as
matter of courso tho direct result Of de-
clino in revenue and this decline il the
direct result Of Aarl times. When tho panic
came, something more than year ago, peo-
rle bcgnn to retrench both in their business
and in their family expenditures. This re-
trenchncnt slowly but surely Affects the
revenues Of the Government, mHinly III the
decline Of customs duties. It can only be
mot in one Of two ways. either ~ by in
cressed taxation, or (:) by reducing e1-
penses.
The second Of these meth ot1s-reducing
expcnsea-=is the tr,o remedy. The first is
m exercise of m exclusive power which
could not be brought into play by a private
person. When the business man fintls that
lis income is falling OF and his debts ill.,
creasing, his only recourse is in the reduction
Of Ills expenses. Ho cannot levy taxes his
customers. This is the r1,lo the Government
ought to apply in a similar case. It is not
as though we were experimenting in the mat
ter. We know that The number and amount
Of taxes now levied are sufficient in good
times to produce grent surplus it they fan
short in bad times, the shrinknge in the
business Of the country must be met by
shrinkagc in Tho expenses Of tho Government.
As the deficit is brought about indirectly by
individual retrencl1mcnt, it must be met by
public economy. II this principle had beeu
recognized as fully nna aa early by the Tnri-
ons Government departments as it was by
wise nnll judicious business men, there would
not hayo been m incrense iu the public debt
of three anl hn1f millions in single month
There arc only two Of the general ES-
ccutive Departments in which economy and
projects for retrenchnent have been in
augurAted OIL n scalo commensurate with the
necessities Of tho case. THESE are tho
Treasury and Post-Oaice Departments. Mr.
1IE1sGow began lis official career By cutting
down expenses, end there is reason to believe
that he will continue in this direction. Post
master General JEWELL has announced that
he will bo able to reduce tho expenses Of his
Department from $4,000, 600 to 81, 600, 900 Il
year, and hes practical projects for realizing
this expectation. But wo do not hear similar
reports from the War Department, nor the
Navy, nor tho Interior, au Of which (and
particularly tho last) might contribute equally
with tho Treasury and the Post Office Depart
rocnts to the general plan Of rctrenchment.
In tho nrmy, the cutting process should
begin above tho rank and flo. In
tho Navy, the increased expenditures
ordered ct tho time Of the virginius
complication should be stopped yhen,
they are. In tho Interior, especi il attention
should be directed to the 1ndi1n contract
system. Everywhere there shoald bo ths
same effort at economy which district inds-
yidual would exercise uE-der the sano cond1-
tons.
There is but one thing TINT might be done
| in the way Of increasing taxation, and that is
| to restore the duties on ten and coffee. The
| low duties which existed before the repeal-
3 cents on coffee md Is cents On tea-wou}d
| yield revanue Of about Sl2 ,00o,0oo q year,
| They ought to bo restored, not on nccount Of
the present deficiency, but because they nsa
duties for revenue purely and ought never to
| havo heeu taken of. The amount which
they would yield to the Government should
| be turned over to the Sinking Fund, in order
to keep good the pledges heretofore made,
thus leaving the deficit in the revenue to be
Offset by the reduction in expenses-
In somo respects, the late increase in the
| public debt will be of benefit to the country.
The wat amount OF surplus which has been
devoted to decreasing the public debt within
tho last few years has encouraged cxtraya,
| gance in all tho branches Of the Government,
and indicated prosperity which was falla'
cious enough to betray tho people into or
overweening confidence. II a temporary sus
pension in the rapid progress we were making
toward extinguishing tho public debt shall
bring people back to their seuses. and induce
the various Departments Of the public service
to reduce their expenses to tho standard o.
private business prudence, the temporary IN
crease OF debt will be Of more service tha1
lnrm to tho country.
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