The Bossier banner. [volume] (Bellevue, Bossier Parish, La.) 1859-1952, 1884-05-01
Tax Reduction.

cent. interest which can be paid off
at the pleasure of the government =
If the present rate of payment be
maintained, the last one of these
bonds will be retired in the year of
grace 1886. And then no other bonds
mature until 1891, when $3.50, 600, 900
more fall due. The only other bonds
outstanding have twenty years yet
to run, and need not be consider
ed. They will be a mere feather-a
bagatelle-to country which at that
time will contain a population of
about 100, 100000, and twice the tax
paying capacity of our people to-day.
The bonds that we are paying off SO
rapidly at present are the basis of the
national bank circulation, and as they
are retired, bank currency is curtail-
ed. In two years more if their pay
ment is not arrested, they will all be
paid off, involving very considera-
BILE reduction in the amount of paper
money which the people find such a
convenience. This is one of the rea-
sons why we are so warmly in favor
of cutting down the surplus-in order
to prevent the withdrawal of the safe,
sound and convenient paper currency
furnished by the national banks. But
suppose this is not done and the sur
plus continues to be collected. After
1886 what is to be done with it? The
government will then have to reduce
taxes or devise some scheme to get
rid of the surplus, honestly if posi-
BILE, dishonesty if necessary. That
must be the situation two years hence.
There will then be no bonds due
which can be paid off. Looking
these circumstances in the face a
proposition has already been made to
deplete our plethoric treasury. 1t is
to pay now presently part of the
interest On the bonds that mature
twenty years hence. These bonds
bear four per cent interest, and the
proposition is to pay one third of all
that interest in advance. Under the
plan, the government is to discount
a part of its interest payments for
period of twenty years, making the
calculation on the basis of four per
cent compounded. The practical re-
suit would be this now we are pay
ing $4,000, 1000 year interest to
these bondholders; but if this plan
be adopted we would pay to them in
cash about 5000, O00,O and then
would pay them each year about 3d.
100000 interest. We would thus
reduce our interest account about
ST., 100000 by paying 5000, 900, 600
down. Our figures are not exact, but
they serve to show that the govern
ment would be getting some advan-
tage in the matter, while the people |
would be taxing themselves to pay
interest averaging ten years before it
is due.
But even supposing this scheme is
carried out, it viii absorb the surplus
or only two years, and at the end of
hat period we will be practically
where we are now. In the meantime
he interest account and the pension
payment will be considerably reduced
md the government expenses will be
ess than at present, thus entailing
N absolute necessity for tax reduc-
ion. Il
So even leaving the taxpayers and
he business interests of the country
nut of consideration, sooner or later
here must be tax reduction unless
he surplus is to be squander-
d. Under these circumstances it
GEMS to us wise public policy to ]
eduee taxation gradually and give
be people to-day the advantage of l
ghter burdens rather than wait a
sw years and then unsettle the bust +;
ess OF the country by a heavy re- ,
uofi0n We oro ..ai s;,or. h, L. cel