Year: 1870

Financial sttnntiOn.


The revenue Of the government Is, In round
numbers, $354, 900, 0O0-that is, from internal
resources $3.50, 900, 900, and from customs
$174, 600, 900. The leading and prominent
men of the dominant and administration party
in Congress assert that the government can be
carried on with an expenditure of hundred
millions a year, or less, independent OF the
interest on the debt. The total interest on the
debt is, without calculating fractions,
Sl27, 900, 600. Add hundred millions to this
for current expenses and this will give total
of 1927, 900, 600. But suppose we add thirty
millions more, that is $3.50, 600, 900 year for
current expenses, Independent Of the interest
on the debt; we then have total OF
$257, 900, 900, or about hundred millions
less than the revenue. There is surplus OF
hundred millions year. And this has been
about the amount which the Secretary of the
Treasury has had to apply for the purchase or
liquidation Of the debt


This is very gratifying state Of things for
the country, so far as its resources and the
payment of the debt 60. 1t raises
our credit abroad and at home aud
makes the bondholders everywhere happy.
The Secretary of the Treasury and many
others believe that It will enable
the government to fund the debt
at lower rate Of interest, though
there NAV be some doubt if the bondholders
would willingly relinquish securities which
stand so high in the market and bearing six
per cent interest for others bearing four Or
four and half per cent. At any rate it
shows the ability of the country to pay the
debt, enormous az It Is, within short time.
But the question arises here, ought the present
generation, or the people Of the present time,
who have borne the brunt Of the battle for the
Union, and who have contributed 80 largely to
the necessities of the government, be called
upon to pay the whole of the debt? Ought
not the next generation, who will have suffered
none Of the evils and immediate burdens of
war, and for whose benefit it was waged, con-
tribute something toward the payment Of the
debt?


We do not agree with the short-sighted
financial theorists who maintain that a national
debt is a national blessing. 1t is an evil in
every point of view in a republican country.
In monarchical countries, where governments
depend for their stability upon the support
they may receive from artificial means, and
not from the strength of the institutions or
principles Of self-government, national debt
may rally to their support, under any crcum-
stances, a large class Of fundholders but we
need no such expedient here. We do not
want to create class specially interested in
sustaining the government for their own well
fare. The people of the United States love
their institutions and need no extransous or
artificial aid to maintain them or to stimulate
their patriotism. A national debt here is not
blessing even in this sense. Indeed, it is curse
anywhere. 1t helps to create or maintain
privileged class, it keeps the mass Of the peo-
pie In poverty and their noses to the grind
stone, and it is an efficient instrument in per-
petuating tyrannical and class governments.
No stronger support, probably, could be found,
if debt be not absolutely overwhelming, to
monarchical or aristocratic government
Liberty and republican institutions need no
such aid.


Still, as was said, there is no necessity to
saddle the whole weight Of the national debt,
amounting in round numbers to two thousand
four hundred millions, upon this generation,
upon the people who have borne 80 much al
ready. Let US not stop paying the debt; let
US contribute good round sum annually for
its steady liquidation; but it is not necessary
to pay hundred millions year and to tax
the people for that amount A permanent
sinking fund of half or even one-third that
sum would be sufficient. The people would
see the debt wasting away gradually and be
satisfied AS population and the wealth of the


country increase the burden would be felt less,
and if deemed expedient the sinking fund
could be augmented after some years have
passed. This we consider the proper finan-
cial policy of the government.


A hundred millions year can very well be
cut off the revenue. Taxation to that
amount can be reduced, and still large
sum can be appropriated to the liquida-
ton of the debt, as well as having a
very nDerai auOuuC lOr curfeHt eApeu5eS.
revenue unnecessarily large only leads to ex-
travagauce and corruption. Economy aud
public virtue are closely connected. One of


the first things Congress should Do is to abolish
! entirely the income tax. 1t is an unpopular
and iuquisitorial tax. 1t invades the pri-
vate affairs of our citizens and leads to false
swearing and all sorts of corruption. 1t re-
quires costly and complicated system for its


collection. i is in every sense incompatible
! with the freedom of our republican institutions.


The injury done to the country and morals of
the people far exceed the value obtained. The


tax on coal and other things Of absolute neces-
e4sz t,, ,,aIa.lo sha,,ld b., cna