New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-11-03
THE PTBLTC DEBT.

THE PUBLIC DEBT
| The reduction of public debt in October was
! S13,321, 45S ST. This follows reduction Of
! $17,483. Gal sc in September SD, ,22l 81
| in August, and $1O,07S,023 2S in judy, so
that the decrease in the debt less cash i'll the
| Treasury has been 500, O64, 345 10 during the
| first four months of the current fiscal year.
| This is altogether unprecedented. Neither by
this nor by any other Nation has such a rate
of debt-payment been steadily maintained for
so long time IN any other instance on record.
| At that rate the reduction for a full year
would be over $165,OO0OOO. Some years
ago. it was estimated by MIR. Wells and other
economists that the net earnings OF the people
of this Countrywide gain in wealth after COW
ering all costs of living and pr6duction-would
! fall below 5000, 900 yearly. If so. more
than a quarter of its entire surplus earnings
! the Nation has applied during the past four
months to the payment of debt.
There are many who will say that such de-
! crease of debt is unnecessary and undesirable {;
that the Nation ought not TO be applying so large
| a part of its earnings to the payment OF an
Indebtedness which its creditors do not want
paid; and that the Secretary of the Treasury i'm
posed excessive and unreasonable burdens upon
the country, just at this time, in order to carry
| through his plan Of refunding. But this crtl-
| cism is based upon total misapprehcn-
sion. The amount of reduction of debt Is
determined, not directly by any Secretary
of the Treasury, but by the operation of laws
| fixing the expenditures Of the Government
and taxing the people for its support. If ex-
listing laws yield a revenue Of $4j,00OOOO in
a month, and permit an expenditure Of only
| sol 900, 900, including interest on the debt,
the remaining surplus will accumulate in the
Treasury, unless the Secretary applies it to
the purchase of bonds. Ii it remains in the
Treasury, it reduces the amount of debt less
| cash, Just rs mich as if it had been spent in
the purchase or redemption Of bonds.
If the reduction of debt is to proceed more
slowly, therefore, that change can be reached
crease of public expenditures. The latter
course will not be favored by the people, nor
has it been favored by the Republican party.
But there are always many demagogues
and usually some reasonable men, who
are calling for reduction of taxation.
| 1t is likely that the remarkably rapid
reduction Of debt within the past
four months may incite men of this opinion to
new efforts. They will try 10 persuade the
people that they are being taxed too heavily,
and that it is altogether wrong to be cutting
down the debt so fast.
There was some force in criticism Of this
sort when taxation was severely felt, and
when a considerable part of the debt paid was
due to foreign creditors. For ut that time large
part of the money paid was sent abroad and was
withdrawn from the resources of the country,
| often at time when industry and trade
could i'll spare it. Now, however, the debt is
almost wholly due to citizens of this country.
| If a large SUN is paid for bonds, 1t goes al
most entirely to persons whose means are,
and of necessity must be, mainly employed in
sustaining trade and industry here. 1t adds,
therefore, to the available capital of the
country. Part of the sum raised by taxation
is actually paid by foreigners. The tariff
system compels them to bear part
of the expenses of our Government
The internal revenue taxes, being dis
tributed in accordance with well recog-
nized laws add to the cost not only of
tobacco and whiskey, but also of cotton and
corn, sold to foreigners. Debt-paying, then, is
merely release of one part of the people
from the obligation to continue to pay interest
TO another part OF the people-a change which
the people approve and desire-with the added
advantage that foreign producers and con-
sumers are obliged to pay part of the debt.
But if it were not so, we might well ask who
feels the burden Of taxation in these days
There is much talk about the Federal taxes
during every national political contest. But
what individual can claim that they are to
him real and perceptible burden2 The
country prospers maryellously. Industry is
well paid and well employed Inviting fields
are opened to enterprise on every hand.
No branch of business, no form of in
dustry, is now embarrassed or impeded by the
burdens imposed by the Federal Government.
And, finally, if we bear burdens in order to
pay debt, we do so gladly in order to escape
future burdens. The interest is burden
which the people are impatient to diminish in
these years of prosperity, because they know
that it will then be felt the less in any future
time Of adversely.
The debt-paying policy of the Republican
party will bear investigation. Those who as