River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1875-02-19
THE PUBLIC DEBT.
Deficit OF Thiriy-five Millions.

- - 49, HhNdhos duuFcsscu the house
on the llth inst, in support of the new
tariff bill. lie reminded the House that
exactly year ago he had endeavored to
snow there was no necessity for increased
| taxation, but he would endeavor to show
now there was necessity for increased
taxation. As he had sincerely believed
at that time that the government could
get along without resorting to that most
unwelcome of measures for the purpose
OF making the receipts and expenses
oil The government meet, so he was with
the same sincerity now compelled to urge
upon the House that there was no other
practicable method of doing so than by
resorting to taxation. His sincerity was
not diminished by the reflection that in
the course of events this was the last
time he could address the House on such
subject There had been two grounds
on which he had hoped to avoid the ne.
cessity of increased taxation. These were
confident hope that there would be a
general revival Of business, and that there
would be reduction OF expenses. The
estimate of the total receipts of the gov
eminent for that year was at that time
$2Sl,77I972, and it was expected that out
of that amount somewhere about $4,000
600, could be applied to the sinking fund.
The actual receipts for that year were
S4,00O,0O0, but there was surplus of
only S2,344,S82 over and above the cur
rent expenses of the government. Last
December the Secretary Of the Treasury
estimated the receipts and expenses for
the fiscal year 10 be such that
there would be a surplus Of 100000 to
be applied to the sinking fund, but in re-
ality the actual receipts since that report
was made were more widely different
from the estimate than they had been
during any year for the last five years.
The actual receipts had fallen far short of
the estimates, for some causes not quite
understood by those who made finance a
study. The receipts from customs had
began to fall off. and had fallen off to the
extent Of $3,S00000, or about one hun
dreG thousand day. If that falling off
continues during the year there would be
deficit Of thirty five millions.
THE LAST FOUR YEARS.
He made statement Of the comparative
receipts and expenses of the government
since 1870, as follows: 1870, receipts,
S5l l,O00,0O0; expenditures, 100000, 900;
1871, receipts, $3S3,000.0O0; expendi-
lures, 1904, 100000; 1872, receipts, 1914.
100000; expenditures, $4,000,
600; 1873, receipts. $333,000,000;
expenditures, $290,000,000; 1874, re.
ceipts, $289,000,000; expenditures. $685.
100000. The receipts for the
! firstseven months of the last
fiscal year were, Sl68.000,000, and for the
corresponding seven months of this year,
$l65.OOO.O0O, being falling off of
$3.000,000.
Mr.. Garfield, of Ohio, enquired whether
the decrease had reached the bottom, or
whether the receipts were still falling be-
hind.
Mr.. Dawes replied that up to the Goth
of December the receipts came very near
the estimate, but from that day to the LIST
of January they had fallen off very seri-
ously. -Four days after that they had re-
cuperated, and had even gone few hun
dred dollars beyond the estimates then
they began to fall back again, so that
there had been a falling off since the Goth
of December from three and a half to
four million dollars. And yet the best
statement that the Secretary of the
Treasury could make was in regard to
the receipts, that the reduction of ex pen
ditures was the work of Congress. The
reduction of receipts were not the work
of ongress, but the work of those influ-
ences of trade and business over which
Congress did not presume to exercise con-
troll.
MIR. Butler Of Massachusetts, asked
Dawes whether the falling off was in the
custom, revenue or internal revenue.
Mr.. Dawes replied that the falling off
in the internal revenue was much less
than in the customs. The last report
showed the receipt from internal revenue
had gone beyond the estimates of the
Treasury Department, so that whatever
evidence Of internal prosperity that fact
showed in the condition of the country.
was more gratifying than would have
been believed. He then proceeded to
comment on the failure of the Treasury
Department to comply with the law re-
quiring one per cent. of the receipts from
customs to be applied to the sinking fund,
so that instead of $4l7 ,556,05G being ap-
piled to it, there had only been Sal ,006,-
900 paid into it,.
Mr. Niblack inquired whether the re-
duction of the public debt by the purchase
of bonds was not an equitable compliance
with the law, Mr.. Dawes replied the law
as to the sinking fund was explicit
that every year so much should be paid
but that even the construction of
the law as suggested, would not relieve
the government from its obligations to
the sinking fund, because all the bonds
purchased, including these charged to the
sinking fund, amount only to 1923, $685.
500 against SAT- ,556,0j6, which should
have been applied to the sinking fund.
Mr.. Beck asked Mr.. Dawes whether he
mad official information to that effect.
Mr.. Dawes replied he habitat is,
from official sources.
Mr.. Beck intimated that besides the
amount mentioned there had been over
S40O,0O0,000 Of public debt redeemed and
cancelled in the shape Of 100 bonds and
3 per cent. certificates.
Mr.. Dawes, | mean the reduction Of
the bonded debt. the entire reduction of