New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-03-10
A TALK WITH MIR. SHERMAN.
HOW TO MEET THE NATIONAL DEFICIT.
PENSION ARREARs-HOw THE TREASURY Is GOING
TO PAY, AND THE PROBABLE INCREASE OF THE


adjournment of Congress Secretary Sherman has
been asked IN what manner he proposed to meet the
| prospective deficit which Congress had taken meas
ures to create in the National Treasury. Hitherto
he has usually replied that the matter required closer
examination than he had been able to give it, aud
he has requested that he should not be quoted as
authority for any opinions in regard to the matter
until he had given the subject more attention. In
the course OF conversation on Saturday the Secre
| tary expressed some views this general subject
which may be taken foreshadowing to some
tent the probable policy of the Treasury Depart
ment in regard to the legislation Of the session Just
closed while at the same time 1t embodies the Sec
retary's personal views of some OF the measures
| which were passed. The substance of this CONVEX
satlon he allows to be published.
| II was surprised beyond measure said the Sec
rectary, in reply to an inquiry, when the Arrears
of Pensions bill passed 1t was an avalanche.
volcanic eruption. did not dream that Congress,
which had shown commendable zeal in pairing and
s2raping down the pay of clerks. would suddenly
require unforeseen expenditure of fOrty-one mil
| lions. | knew the bill was pending but far
the Bounty bill, the Texas Pacific Railroad BILL the
! bill rounding the cotton tax and many others
were concerned, counted on the prudence and
economy of the Committee on Appropriations.
had made the hopeful estimate Of twenty-eght mil
lions surplus for the next fiscal year. and the actu-
ally increasing revenue justified the estimates of the
Department. To say | was surprised when my
hoped-for surplus was converted INTO a deficit Of
thirteen millions, is to express it very mildly"
"Why were not the back pensions paid long
! agOT was asked, with view of drawing out the
Secretary's opinion as to the merits of the bill.
"As understand it," he replied 1.-THE pensions
for five years after the war were paid from the date
of L,t tbo of
gress deemed it gt to date the pension only from
the date of its allowance suppose on the ground
that if it was really due 1t would have been applied
! for sooner. This was OF universal application. 1t
seemed to be just, and think ought to have been
adhered to, except III the few cases when the delay
| was caused by the action Of the Government, and
not by the neglect of the claimant"
"But still do you not, think the arrears of PEN
! sions were, in fact due to the pensioners
"On the broad ground of merit would say yes.
Everything we have or enjoy owe TO the soldiers
who defended and preserved our country. By the
law Of the middle ages all the land and property of
the rebels should have been distributed among
! them. This our law OF war did not tolerate, aud
we have instead the novel spectacle Of the rebels
! voting to the victors money collected as taxes,
! chiefly from the victorious party In strcter
sense this money was not due, for it could
]
true rule would be to date the pension from date Of
application. | would have voted for such law.
! am well assured the pensioners would have been
| satisfied with such rule and then would have
| had no such sudden and dangerous demand upon
! our resources. THIS bill not demanded by the
pensioners, but by the claim agents. and will work
| great inequallty. Those whose disability not
| developed for years after the war will get as much
! as those who suffered daily from wounds and sick
/ ness"
"Can you pay arrears of pensions without en-
! barrassmcntV
"Oh. YES, we can pay by borrowing. The money
ought to be paid promptly. There IS no use whIn-
/ ing about it, There are no more deserving people
! in the United States than those who will get this
money. am for paying them in money as soon as
! the claims can be- verified by the Pension Office.
Bnt this can only be done by borrowing, and Con-
gress has refused the authority to borrow. If the
Department had Micawbcrs remedy, to pay by
note. it could easily do so, but to pay without
money or the authority to give note IS financial
problem that cannot solve All that can be done
is TO pay as fast as the current receipts will allow,
or defer such expenditures rs are within the dis
erection of the President, for rivers aud harbors
public buildings and the like. have not yet fully
ascertained the claims and unforeseen demands APP
propriatcd for that must be met, but some OF them
| known, ana among them IL one lOI FIoo,ooV
for CAPTAIN Eads for the Mississippi jcties, which
was entirely unexpected The tobacco bill will cost
rs about 10000 900 of revenue. Still we will
have surplus which was pledged to the sinking
fund. but Is now diverted by Congress to the pay
meut of these arrears of pensions and will probably
hr sufficient to pay them within two years without
| increasing the public debt
/ " Bnt II ~ said Congress intends TO have them
paid out of the resumption fund
" Oh, hope not. ms W0uIh De pctt| siiDttr-
furc In the opinion OF some prophets of evil who
/ said resumption would fail, the tund u not
| now and never was large enough Inc friends ol
/ resumption believed that fund OF 40 per cent OF
the United States notes outstanding was sum 'lent
/ That uur,tion Is left with the Department. think
fine present reserve OF one hundred ana thriy-seVeH
millions Is not too large. II II Is drawn upon
ru.t ma te the deficiency good by the sale of bonds
| n am plainly required by the Resumption Act to
. Will they not charge YOU with increasing the
| public debt T.
" That depends upon who YOU mean by they.
! Some editors say am increasing the public dent
when sell 1 per cent bonds To pay an equal aHouiil
! of q per cent bonds with a loss of three months
interest. suppose the same class Oh cultoIS VIII
say increase the debt when Congress requires me
! to nay out more money than can be collected IN
! taxes This talk would not nlsiead an oSllicH
! The truth IS that both Congress ana the country
have found that our public debt Will be tempo
! rarilv increased by the large payments required
/ undrr the recent Pension Act, and the better way
/ Is 10 acknowledge the fact ana borrow the
! needed money on the best terms possible ii thal
! Is not d, cmed advisable the President must cNer-
clsr Ia, discretion a. to which OF the appropriations
! by Congress he must postpone, for ne cannot pay
! $3.50, 100000 of appropriations Win T-oO'oVo'ooo
! OF revenue.
| GENER1L T. y. SHEEM4N TERY I'LL.