Year: 1869

FO~lnCOmiDS e1cssdSc.


! From the New York Herald.


Although Congress will not meet fol
seve al weeks to come, and the message
of the President to that body will not bt
deli cred till that time, we are able Il
foreshadOw what Will be the genera
principles which will be announced a.
the policy of the administration with
regard to the national finances. The
President and his Cabinet are giving 6
great deal OF attention to this subject
and properly so, for it is of paramount
importance and overshadowS all Other
subjects. The President sees the neces
sity of reducing the public expenditure:
as low as possible, and of managing the
uebt in such way as to reduce the an
ual burden of it. He wishes to tighten
the weight of taxation, particularly upon
articles of general consumption which
are deemed the necessaries of life; but
he thinks the interests of the people will
be better promoted by not disturbing
the present revenue laws at the next
session OF CongresssOr for another year.


The object is to consolidate the debt
at the lowest rate of interest possible
and therefore it is deemed important to
keep the Treasury in the most flourish
ing condition till that is accomplished.
The wisdom of such policy will beseen
at once by every one; for if the income
of the government continues to be SO
much larger than the expenditure, and
the Treasury has hundred millions Or
so of surplus revenue year to apply tO
the payment of the debt. the credit oi
the country must rise, and the consoli-
dation or Encouragement of the debt, by
loan or otherwise, could be effected on
much better terms. A man with ample
means and fine prospects before him can
always make loan for any special OBJ
ject on better terms than any one who
is in doubtful circumstances. 1t is the
same with nations. After the debt shall
be reorganiZed and placed on sound
basis the finances will be in a condition
to admit of general reduction of taxes.
The first thing, as the President wisely
considers, is to adjust the debt so as to
reduce the annual burden of interest on
it, and the best way to de that is to keep
the credit of The goveI nment up to the
highest point. When the debt is thus
adjusted we can proceed to modify the
taxes. To cut down the income and
means of the Treasury before would be
unwise and would be loss to the coun-
try in the eend.


Quiet and unpretending as General
Grant is, he shows in this far-seeing
policy relative 10 the national finances
that in financial as well as in military
affairs he is equal to any emergency
He is a man of thought, and when he
brings his strong practical common
sense to bear upon any public matter he
displays the qualities of a statesman.-
The plain Western farmer or tanner,
who rapidly rose by the force of his ge-
MUS and character to the command of
the largest army of modern times, and
who put down the most formidable re-
bellion in history, seems likely to master
the difficult problems of finance and
civil government.


But while it may be wise not to re-
duce the income of the Treasury till the
debt is simplified, consolidated and the
interest reduced, the expenditures Can
be very well cut down. 1t is gratifying
to know the President has this desirable
object in view. The expenditures in
every department are much too large
for times of peace. The total expendi-
lures for the fiscal year is estimated at
about three hundred millions. Out OF
this nearly one hundred and thirty mil
lions go to pay interest on the debt
The current expenses, then, apart from
that paid in interest, are about one
hundred and seventy millions. This
amount is double that expended just be-
fore the war, yet the population is not
oyer fourth more. From hundred to
a hundred and twenty millions year
ought to be sufficient. With the restor-
alton of the South there is no more Ne
cessity for large standing army than
there was before the war. Never had
the country stronger assurances of peace.
The military power it has displayed
and that chiefly through its citizen SOL
diers, who flew to arms when the emer-
gency called them out, and who as
quickly laid them down when the war
was over-is the strongest guarantee OF
future peace. Only small increase OF
expenditure for the army over that be-
fore the war is necessary. The same
may be said of the navy. The cost of the
civil service ought not to exceed twenty
Der cent. over that of 1860. Allowing a
fair margin for necessary increased eX-
penditures in every department, and
reckoning pensions as well, the total for
the civil, military and naval services
should not be over hundred and twen-
ty millions. This would be saving OF
about fifty millions year OH the esti-
mated expenditure, and would leave a
hundred and fifty millions out of the
revenue for the fiscal year to be applied
to the liquidation and re-adjustment OF
the debt. Retrenchment and economy
should be the watchwords of the admin
istration and Congress. To keep these
strictly in view and to act upon them
will not only reduce the debt, enable
the government to readjHst it on the
most favorable terms and Tighten the
burdens of the people, but will have as
well beneficial influence on the ex-
travagant habits and morals of the COM
m Unity.