Year: 1866

EW IORK HERALD, FRI
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In few days we shall have the report d


the Secretary Of the Treasury to Congress, and


We may expect that that body will shortly
after take some action to place our national
finances on . sound foundation. The session


being short. and there being long interim Of
nine months before the new Congress will
assemble, 1t Is highly important that well
regulated system should be sstablished this
winter. This question really ought to be the
first TO occupy the attention Of the national
Legislature, a. 1t Is undoubtedly the first in Inn
portance Il Is subject ON which few Of our
public men arc we'll educated, and It will there
fore require very thorough and deliberate
discussion. The greatest dinaculty will be to
disentangle 1t from the impraoticsble theories
of visionary 6nanciers and the schemes Of inter
ested parties. But this can be overcome by
going down to simple principles and by taking
instructions from the lessons Of history.


We cannot tell what the Secretary Of the
Treasury proposes to recommend. There are
great many rumors and speculations in tho
press about that, some Of which evidently
emanate from the national banks and other
powerful interests, expressing what they wish
rather than what they know.


Bnt II we are not accurately informed Of
what he will recommend, We know what he
ought to recommend and what Congress ought
10 do. It Is this: There should be reduction
of the revenue to an amount sufficient only for
the economical administration Of the govern
ment and for moderate fixed sinking fund to
liquidate the national debt within reasonable
time. Our present enormous revenue Of FIVE
hundred millions or upwards Is far too large In
times Of peace it becomes, In fact, great
demoralizing corruption fund at Washington.
Three hundred millions ought to be sufacient
to pay the interest on the debt, tho ordinary
expenses Of the government, and for sinking
fund, which, properly applied, would extinguish
the debt in thirty years. Areduction Of nearly
half our taxes might safely be made. But in
making this reduction Congress ought to take
care to relieve the burdens on industry and the
productive powers Of the country. Above al,
the mass of producers and consumers should
not be burdened with taxes which operate for
the benefit especially Of certain class Of
manufacturers and monopolists. Let the re-
ductiOn be made where the burden is most felt.


Then the whole Of the interest bearing debt
should be consolidated in one form, say in i've
per cent consols at long date. This would
simplify it, reduce the cost Of management
and give to the people of our own country safe
stocks for Investment Less Of 1t would be
held abroad at this reduced rate Of interest,
and it would create powerful conservative
class at home interested In the preservation OF
the government There would be little diff
Guilty in transferring the six and seven per
cent bonds, which have limited time to run,
into long date five per oent consols. But this
should all be done by the government itself,
and not through great jobs to Jay Cooke 4 Co.
or other private parties. A law could be
framed to reduce the interest, which would ct
the same tims do justice both to the public
creditors and to the taxpaying people.


There should be sinking fund established
and held inviolable for the extinguishment Of
the entire debt in thirty years or SO. That,
probably, would be within as short period as
the steady and healthy financial and CONNER
cial interests of the country would justify this
change in so much capitalized wealth. The
operation Distinguishing or buying up the debt
through commissioners or bureau could be
conducted so steadily and quietly that no great
arrangement OF value would follow. The man
who would change his six per cent bonds, rum
ming ten years, for Eve per cent consols, running
thirty years, has the full value Of the longer
period, though the government may be In the
market to buy at all times. The interest on
the debt is too high every way-too high in
proportion to what the debt was purchased at,
too high for such good securities and too high
to keep the debt at home, where it ought to be
kept.


One OF the irst things that should be done is
to have uniform legal tender currency, and
no other. The so-called national banks arc q
vast private monopoly, dangerous in every
way and heavy drain upon the industry Of
the nation. Their circulation Of three hundred
millions is free gift to private rich corpora
tons. They pay nothing for It. They are
taking twenty to twenty-five millions year
out Of this privilege, which ought to belong to
the government and people. II is the
greatest fraud ever perpetrated on country.
IL the government would substitute legal
tenders, which is much safer and more de-
sirablc money, for the national bank currency,
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lions year. All it would have to do in ao-
complishing this would be to buy up the three
hundred millions of interest bearing bonds
now deposited as security for national bank
notes. by an issue OF non-intsrest bearing legal
tenders to the same amount


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