New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-01-30
yoL.XXXlV. mo. TO- $50.
WASHINGTON.

DESPERATE CONDITION OF THE FINANCES
GOVERNMENT OBLIGATIONS on THE EVE OF PRO-
rEsr-THE HOUSE AFRAID TO TAKE THE REsPoN-
s,nuIrY OF NEW TAXEs-LIrTLH PROSPECT OF
IMMEDIATE REVENUE FROM WHISKY, COFFEE.
OR TEA-A TEN PER CENT TAX ON THE WHOLE
FREE LIST THE ONLY RESOURCE.
IBY TELEGRAPH TO THE TRIBUNR.l
WASHINGTON, Jan. 29-That the expenses of the
novernment now far exceed its income, is a fact
,vh;cb the Treasury Department no longer seeks to
conceal: and there are mono so ignorant as not to
tnow how impossible il is TO escape bankruptcy, If
an individual OF a government spends 81 while only
9, is earned. The President has known the condi-
non of the Treasury for several months, and the
Ways and Means Committee have not been ignorant
- the desperate STRAIT into which the finances
landing. but more especially was the Secretary
Of the Treasury aware of the hopeless
condition of his department, Long before the be-
ginning of the present session of Congress, it was
foreseen that increased taxation was inevitable.
Either thirty or forty millions of dollars had to be
added to the Government revenues, or else the ex-
penses Of the Government had to be reduced by that
amount The estimates were scanned in vain; no
chance for retrenchment presented itself Economy
was not a thing to be considered. So increased
taxation must be enforced, and the leaders have
been casting about to find how the immense sum re-
uured may be obtained without injuring the party.
This subject has been debated so long that the
Government itself is on the eve of having It's obi
cations 60 to protest. The Legislative branch hest
tates to take the responsibility, and the Executive
branch is indignant at its inactOn, and apprehen-
sive for the future. The rapid lapse OF time ana
near approach of the end of the session. together
with the unaccountable want OF activity on the
part of Congress on the subject OF taxation, have
combined to throw the Administration into state
of great CONSERVATION. Upon two occasions haVe
the Cabinet held earnest consultation on the sub
iect and the President and his advisers have gone SO
far as to consider the prOprety OF calling the atte
ton of Congress again to the matter by speclai
message. The subject was not considered by the
Cabinet at its meeting to-day but nj the TWO pre-
vious sessions it was a matter of very serious dis
cussion. and 1t was decided that there was very
pressing necessity for immediate action by Congress-
Members of the Ways and Means Committee have
been urged by the President and Secretary OF tho
Treasury TO act at once and the true condition OF
affairs in the Department and the desperate necess
ties that were pressing have been brought to the
attention of at least two members OF that Com
mittee.
The Department is careful to keep its exact con-
diton from the public, and the officers merely say
that more money is necessary TO meet the expendl-
lures and that bankruptcy will he the result OF
failure on the part of Congress to provide means 10
meet the accruin2 obligations. The question on inc
part of the Committee of Ways and Meansls WHAT'S
20 be done The tax on whisky, as the Secretary
is now convinced, cannot be increased Win any
hone Of adding to the revenue for the first year
because there is nearly a years supply on hand. and
none will be made with the tax 50 cents until the
stock already on band. which paid but 10 cents IS
exhausted Ii is estimated by the Department that
Sl8O00O00 could be derived from ted and coffee.
Two hundred and ninety million pounds of coffee
are sold yearly in the United States. The ola tax
was three cents per pound. OF tea about GOVJO,VO
pounds are sold, the old tax being 10 cents per
pound 1t Is claimed by members of the COMMITTEE
by heavy merchants in tea and coffee, and 10y the
Department officers. that the tax on these articles
has been already discounted, end that coUfumerS
are paving the increased price incident to tic tax,
but that the Government is deriving no benefit.
1t is very evident that the Secretary Of the Treas
ury Is in favor of making wholesale attack on the
free list and il seems likely that the Committee viii
favor such course; yet it would be unjust to trans
fer the whole free list to a ta-iit basis. But each
article has its dealers, and the Committee well know
that they cannot hope to accomplish ANYTHING II
they throw the doors open for every interest repre-
scented in the free list be heard against the pro-
posed action. 1t would he a constant and prolonged
warfare against the Committee. The free list
amounts to S1SQ,O0O,GO0, and Treasury officers say
that 10 per cent could be imposed ali articles IN
that list without hardship 10 any particular inter
est The proposed restoration Of the 10 per cent
horizontal tariff viii uDquestiOnably take place.
The Committee and the Secretary seem 10 favor
that. 1t is said at the Department that the Little
Tariff bill viii only add 81 100000 or S20O0Oc0 to the
revenue, and that il can neither do very much harm
nor very much good. There is little doubt, however,
that it will be signed by the President.
The President and his Cabinet are not in q very
happy frame of mind over the course Of Congress,
and il is not too much 20 say that they are al
heartily disgusted with the Civil Rights biz. They
say that that bll whether it pass wheher 1t fail
will have little to do with the administration OF
government. while the questions of tax and tariff
rot only reach directly into the pockets of The citi
zen, but affect our public credit and solvency a
nation On the 4th of March the quarterly pay
ment of pensions will have to be made, which will
require $7OOOOOO and at the present time there are
only SsOOOOOO in greenbacks available in the Treas
ury. If the receipts do not increase or the expend
lures are not reduced, it is possible that the Treas
ury may be depleted before the end OF the present
Congress The Administration, it cannot be denied
shrinks from the responsibility Of imposing in
creased taxation the people and yet fears to be
responsible for the heavy DEFICIENCIES and possible
bankruptcy that would follow the present system
1t would seem that neither the Executive nor Con-
gress has the moral strength TO pursue the only
course that the people demand, namely, the cutting
down Of public expenditures.
SAMPLE OF THE LOUISIANA RING.
CONSPIRACY TO sMUGGLE sUGARs-NEw- ORLEANS
CUsToM-HoUsE OFFICERS IN THE PLOT-THE