Year: 1874

Meeting the Deficit.


From the New York Graphic.


Secretary Richardson is exhausting his
stock of arguments in urging Congress
to provide for the pressing needs Of the
Treasury. He has less than S4 900, 900
subject to draft, and all but $4,000, 900
of the reserve has already gone into cir
culation. Sixteen millions of interest
come due in May, and extra payments
must be provided for in April, while the
regular expenses of the Government ex-
ceed its present income. 1t is impossi-
BILE to reduce the appropriations much
and how to meet the deficit is a question
that grows more pressing in its urgency
every day. 1t is easy enough to accuse
Secretary Richardson of incompetency,
but he is not responsible for the deficit
He has not shaped the financial policy
of the Government. He is merely an
administrative officer, and as such he
seems to have discharged his duties
well. Had he the genius of Hamilton
or a Necker, he could not manufacture
money out of nothing to meet the ap-
preparations of Congress for which no
provision has been made. Congress is
the responsible party, and if the Treas
ury is depleted and the paper of the
Government goes to protest it should be
made to suffer the penalty of its neglect
and folly. And certainly the Secretary
has done everything in his power to per-
suade and compel Congress to look the
financial situation fairly in the face.


Three methods of meeting the present
deficit have been proposed-inhation,
taxation, and loan. Imitation is bor-
rowing, and borrowing in a dishonest
and disastrous way. 1t should be ruled
not be considered for one moment were
the Members of Congress qualified for
their seats. But as the present Congress
is composed very largely of mere politi-
cians and adventures who are ignorant
of the first principles of finance and po-
litical economy, we shall Dot.be surprised
if some measure Of initiating the curren-
cy is resorted to. 1t is so much easier
to pay bill with a note than to devise
ways and means for raising the money,
that it would be strange if the average
Congressman should cudgel his brain
much, SO long as there are paper-mills
Taxation is unpopular, and Congress
will shrink {, ON increasing the duties on
anything. The only alternative isa loan,
and that is not only the simplest but is
the Eaost practicable and honest and
statesmanlike course TO pursue. A loan
of fifty millions would carry the Gov
ernment completely over the difficulty,
and give Congress ample time to consid-
er the financial system of the Govern
ment in all its various bearings. And
it is manifestly not in condition TO do
so to-day.


The truth is that we have got to make
up our minds that a Government like
ours is costly affair, and make provis-
sions for its expenses. The country is
immense. 1t is growing every year.
The demands on the Government are
steadily increasing. They cannot be re-
sisted or ignored. The Government will
be compelled by the public sentiment of
the country to do more in the next de-
cade than it has ever done before. More
over it is false economy, and a policy as
short-sighted as it is bad, to stop the
work on great public Improvements be-
cause of temporary pinch in the ma
tional finances, throwing thousands of
poor men out of employment at the
hardest season of the year. The Gov
ernment is not bankrupt. 1t has all the
resources of the nation at its back. The
country was never richer than it is to-
day. If anybody is to suffer, let the
burden fall on rich men and capitalists,
and ornamental officers whose individual
salaries would support the families Of a
dozen laboring men. We must have
public buildings, and the more depressed
the money market is the more urgent
the necessity for completing these works.
The industry of the whole West suffers
from the deplorable condition of the
Mississippi River below New Orleans.
There are twenty other things which the
Government ought to take hold of at
once, and not drop until they are COM
pleted. Our navy is too small for the
real interests of the country. The army
cannot be reduced. Our postal facilities
are none too great, and must be increas-
ed rather than diminished. Three
quarters of the talk about retrenchment
is mere buncombe. Waste can be pre-
vented and leakages stopped, but there
cannot be any material diminution of
the expenses of Government, and it is
the duty of Congress to look the future
in the face and make provision for its
wants. The sooner our people make up
their minds that the Government means
something, and costs something, and
must be supported and held responsible
for its trusts, the quicker it will be re-
lieved from its present financial dilem-
ma, and the better provision it can make
for its needs in a sound financial policy.
A Present from Spain.


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