The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1896-10-20
THE PENSIONS PROBLEM
a Plan Suggested to Reduce the Enor.
nous Yearly Cost.

nous Yearly Cost.
The fact that it is the gift yearly of
$40, 1000, 900 to pensioners that embar-
| raises our finances and prevents the re-
duction of tariff and internal taxes lends
interest whether there may not be some
less burdensome way of providing for en-
soldiers. The only policy hitherto mp.
piled has been to increase the pension
outgO as fast as interest on the public
debt is diminished. Thus, in 1865, when
the Understanding public debt was So.
3S1 $50, 294 and the annual interest
charge was $150,977, 607. the total dis
bursements for pensions was but So, 525..
1853, while in 1895, when the interest
bearing debt was but 1856, 037, 100 and
the interest charge was but 500, 1874, 1914,
pensions aggregated as much as 1888
100, 342. The pensions, say the pension
attorneys pathetically, are ga debt" over
and above the wages paid during the
war, to the old soldier, and those who
loaned their money to save the Union
ought to be thankful that their claims
were paid first. In this view n public
debt, involving an annual tax Of about
Sl6O,000, 900 is to be permanent feature
of our Government. The present pen
sion outgo is about $140,000,000 year,
which, capitalized at per cent, repre-
sents principal of $4,000, 900, 600 or
about billion more than the debt at the
END oil the civil war. AS we are still
paying pensions on account of the war of
independence, which ended virtually in
1881, this pension debt eatailed by the
civil war may be expected to last us till
1880 or longer
Conccding that there is to be no re-
form resulting in an abatement of the
pension total, it has been question with
iinanciers whether, with the full assent
OF pensioners, an arrangement might not
be made that would in part relieve
the present generation from its heavy
burden. The Money Market Review
suggests plan, or, in fact three plans
me iirst plan involves the payment to
the pensioner of Il lump sum in cash. or
bonds. Prospective pension payments
might thus be committed, large numbers
oil persons preferring Il large capital
available for investment to .driblets con-
tlnueu through an uncertain number of
wears. a. saring would be affected. Two
billions would perhaps suffice, which
sum could be raised by per cent loan,
costing the taxpayer but $50, 000 600 or
less year. At present, it s--poin.ed out,
americans pay annually in taxation for
their pension list sum about euualing
the whole cost of the British national
NS''' winch IL %, tuu,UUu,UUU, nit With
the plan suggested the whole pension
liability would be cxtingushed by n
bond issue not exceeding our bonded debu
in 1865
A second plan inv Dlvcs the payment OF
annual instruments by II fixed term: the
third looks to an annuity for Life. Each
OF the three plans supposes the ascertain
ment of an amount to which the pen.
sioner is.entitled, she amount being as
certained according to tables of probable
longevity. Such as preferred the first
plan would accept che capitalization of
their claims in cash, or bonds, which they
might sell or keep, according to their in
dividual views. BY the second pl;.n n
number of annual payments would be re-
celved, each larger than the present
larger annual pension, but for Il number
of years less than tho probable length of
life. The third, or annuity plan, would
practically nov differ much in results
from the present method.
The effect OF the scheme would be to
disembarrass the Governments Finances
in case of Il foreign war when revenues
would need Go be largely Increased or in
peace, when hard times suggests reduc-
ton of taxes. In 1895 the customs reve-
nue. was Sl52, 0000 600; Internal revenue,
Sl43, 900, 900 With the cost of pensions
reduced to 500, 100000 or less, there
would be room for large reduction of
taxes from either source. Free trade
would be practicable, or IL purely revenue
tariff. with an average advalorem rate of
not over 20 per cent, in lieu of the
present rate of 4l.75 per cent. A read
Justment of pensions producing such
result would have much in it's favor