Year: 1873

The Secretary of the Treasury has called
the attention of Congress TO the falling off OF
the revenue below the estimates and recon-
mends that a tax be placed on certain articles
that will afford revenue of forty million
dollars. He bases this recommendation upon
the suprosition that the receipts for the ba,-
ance of the fiscal year will not be proportion
ally greater than during the first quarter
which ended with October, and the month of
November. Should this decrease continue
during the year, the customs and Internal
revenue receipts alone, will fall fifty-one mil
lion dollars below the estimates of ex-Sccre-
tary Boutwell, il December, 1872 1t is
hardly possible that the receipts from the
two principal sources ofrevenue will continue
long time at the present low figure. Busi
ness must revive and with its revival there
must be an increase. There is, however, al
ready deficit of seven millions, consequent
ly something must be done a. once and the
only question to consider is what that thing
shall be.


In the first place any scheme Of the nature
of that proposed by Mr.. Kelley, must be set
aside at once. All propositions to relieve the
treasury from its present embarrassment by
an issue of bonds or national currency are
not only useless but dangerous, and those
who advocate them are financial quacks. No
greater injury can be inflicted upon the
country than for its Government to hire
money for Its current expenses in time of
peace.


There are, therefore, but two remedies, a
reduction of the current expenses, or further
taxation. We are well aware that the peo-
pie will not welcome an increase of their
taxes, but they will prefer it to borrowing.
But before any measures to increase the reve-
nue. are adopted, there should be a searching
examination of the estimates of the Execu-
tive departments and an unsparing looping
of of all calls for appropriations which are
not absolutely necessary for the successful
maintenance of the COVE rnment. For in
stance, the last Congress made liberal appro-
priations for public buildings which have
hardly been begun. In many cases the
amount of money expended on these is much
larger than it should be. 1t is quite probable
that three or four millions might be saved in
this direction. The War Department calls
for over eleven millions more than was appro-
priated by the last Congress. Much OF this
Is for forti6catons, etc., which if needed at
any time, can for the present be postponed.


We have no doubt but that the various de-
partments Of the Government are now man
aged more economically in proportion to their
extent, than at any time during the last fifty
years. The number of Offices that have been
abolished during the past five years amounts
to thousands, yet there is reason to believe
that opportunity still exists for retrench-
ment At any rate, the Republican admins
tration stands pledged to rigid economy, and
now rare opportunity is presented to signal
ize itself in the service Of the country.


When the estimates are carefully revised,
ard Mr. Garfsld's Committee puts its knife
to them before they go into the appropriation
bills, it is quite possible that they will shrink
10000, 900. For the balance Congress must
resort to taxation and among the articles that
should first be taxed, are tea and coffee. EA-
perience has proved tina; it was unwise to re-
move the tax on these articles, since it has
not affected the price to any perceptible de-
gree. From these articles, the treasury can
realize . sum nearly sufficient 10 make up the
deficiency after twenty or more millions have
been saved by economy.


The policy then under the present embar-
rassment Is, first, thorough economy; second,
taxation. But NO INITIATION, NO BORROW
ING, no interference of doctors of the Kelley
atAmp