The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-02-18

same extent as if they had to pay IN addi-
tional price equal TO the duty. The gov
eminent has no right to play fast and loose
with our importing merchants by step
ping in to derange their trade for
a temporary purpose The tendency of
free trade in ten is to bring to
this country a large carrying trade in that
article. The voyage is so short and direct
between Eastern Asia and our Pacific coast,
and tea is so light nm article in proportion
to its value that we may import it for re-
be unwise TO interfere with the natural
tendencies of this branch of trade as mere
transient makeshitt. :.
We do not believe that Congress is pre-
pared to reimpose the duties on tea and
coffee rs permanent part of our fiscal pol
icy. Those taxes were very deliberately
repealed, in apparent obedience to strong
popular sentiment, and the present unex-
pected deficit is not a sufficient reason for
restoring them. Our present tariff will yield
abundant revenue as soon as general trade
revives. For the last few years we have
been exporting great deal more than We
have imported, and the balance has come
back in our own bonds. But that process
will slacken. and in the long run we shall
receive pay for our exports chiefly in inn
ported goods. AS soon as our importations
become little larger the public revenue
will be sufficient.
In such a state of things the most reason
able way of providing for sudden and tenn
porary deficit is by loan. A loan suffi-
cient for the purpose could be negotiated
at once as easily as a loan of the same
amount for retunding. and at the same
moderate rate: AS soon as the revenue be-
comes ample we could bring back the
funded loans to their present amount by
the same methods which we have so con-
stantly employed during many years for
reducing the public debt.
No ill-judged project for paying the arr
'rears of pensions out of the specie reserve
would avoid an Increase ofthe funded debt.
It is the duty of the Secretary Of the
Treasury, duty imposed upon him by
law, to maintain that reserve and keep it
ample. The Resumption law puts in his
hands power to provide the means
to any extent which he may judge
necessary. He says in his last
annual report:-'"rhe power TO sell
any Of the bonds described in the Refund
ing act continues after as well as before re-
sumption. Though it may not often be
used, it is essential to enable this depart
ment to meet emergencies. By its exercise
it is anticipated that the Treasury at any
time can readily obtain coin to reinforce the
reserve already accumulated" If, therefore,
O needful portion of the reserve should be
taken away to pay arrears Of pensions
the Secretary of the Treasury will OF once
replenish It by new loans. This cuts away
the ground from under the pretence that
this expedient should be resorted to in
order to prevent nm increase Of the funded
debt If portion of the gold reserve is ap-
propriated for other purposes than redemp-
ton new bonds will have to be sold
to replace the coin. and it would be
more business-like for Congress to au-
thorize the sale of bonds to pay the pen
sions. While the other method would n OF
prevent On increase Of the funded debt, nor
prevent the same amount Of coin from lying
in the Treasury as O reserve, it would hay Q
the mischievous effect of initiating the cur
rency and thereby interfering with the
great experiment. Of resumption.