Year: 1869




at the Brevoort House.


Prominent Departures.


Senator Morton, for Indiana; DR.. Thomas Wilkes
for Chicago: Judge Hyman, for Texas; Colonel SAM
uel vanderlip. for Troy. and Dr. 8. Miner for st.
Louis.


Financial Condition OF tho Government and


Countryside Prospect Before Us.


The reports which come to us from Wash
ington from time to time of the condition Of
our national finances are very dattering, though
the last press report, published on Saturday,
probably contained several mistakes. It can
hardly be possible that the expenditures of the
government for the last fiscal year amounted to
five hundred and eighty-fv millions Of dollars,
or that the amount the year before was over Q
thousand million dollars, as there represented.
There is probably some error in the figures
There is no doubt, however, that the revenue
is enormous, and more than sufficient to meet
the ordinary and current expenses of the gov
ernment. The monthly statements of the Sec
retary of the Treasury since March, when
General Grants administration came into
power, show this. The last statement, made
at the beginning of this month, showed q
decrease of the national debt during the six
months since March of forty-seven millions.
Taking the whole year up to September, and
reckoning the bonds issued to the Pacific Rail-
road as part of the debt, as Mr.. McCulloch
used to reckon them, the debt was diminished
in that period over thirty-seven and half
millions. Then there is this gratifying fact,
that the increase of income over expenditures
becomes larger from month to month. If this
state Of things should continue till the first
year of General Grants administration closes
the debt will be reduced probably during that
time one hundred millions.


Still improvements can be and ought to be
made. The expenditures in nearly all the
departments are much too large. The revenue
is too great in time of peace; for 1t only leads
to extravaganza and corruption. The taxes
are far too burdensome, and might be reduced
considerably, even with the keeping up large
sinking fund for the liquidation of the debt.
The income tax especially is oppressive and
demoralzing, and bears unequally upon the
people. The wealthy, for the most part,
escape paying . fair proportion, the planters
and farmers hardly pay anything, and the
burden falls principally on those with limited
and specific salaries or incomes. Congress
can very well abolish this tax and ought to do
so. Then there are other taxes on articles of
general consumption and necessity from which
the masses of the working classes ought to be
relieved. In fact, our present revenue sys-
tenn, which in part grew out of the war, and
which is not adapted to times Of peace, ought
to be overhauled and simpli6ed. A tax on
whiskey and such other luxuries should be al
high as can be well collected; and here it Ia
but just to say that it is creditable to the
administration that the internal revenue from
this source has been largely augmented since
General Grant took the reins of gov
ernment In the matter Of expenditures
we notice that those of the War Depart
ment the last fiscal year were over
eighty millions. This is more than the
whole expenditure of the government for eli
purposes nine years ago and before the war
True, it was nearly fifty millions less than the
year previous, II the figures can be relied
upon, but it is thirty or forty millions toe
much for q peace establishment We see nc
reason why a hundred millions Of taxation
cannot be taken of, if the expenditures be
properly reduced and economy practised, and
still large surplus left for the steady liquida.
ton Of the debt. We hope the Secretary O
the Treasury will make recommendations Il
Congress in accordance with such views and
facts, and that that body will act upon then
during it's next session.


There is another important question in con
nection with taxation and the financial cond
ton of the country which calls for seriou
attention. That is the question of reducin,
the interest on the debt, or, what would b
better and amount to the same thing, of taxin
the bonds. The present high interest is no
only an enormous burden upon the people, bu
it paralyzes industry and progress by the alb
sorption Of active capital and drains tn
country of specie to pay foreign bondholders
As long as capitalists can get six per cent i
gold or eight per cent in currency by investin
in United States securities they will nc
trouble themselves with business enterprises
Besides, our bonds are going abroad at such
rate, under the stimulating influence ofhigh iu
terest aud the desire Of foreign capitalists to in
vest in them, that there will be soon create
annual demand for the precious metal
to .pay the interest abroad than Our mine