Year: 1875




the public schools.


PAPER OF GAMALIEL BRADFORD.


FINANCIAL POLICY or ENGLAND AND THE UNITED


STATES.


Hardly fifteen years have elapsed since the
finances OF the United States first became matter OF
serious importance. At least, II we include under that
term only the common items OF debt, revenue and ex-
pendturc. IT, indeed, add the kindred subjects OF
currency and banking, Of Importance Is certainly
not the phrase employ. That is most disastrous his
tory and one which well ustics the remark OF the Hon.
Richard Cobden that the United States have suffered
more from bad currency than from slavery itself.
Deeply however, that branch OF the science enters
into the life Of the nation, and intimately as 1t Is bound
up only with the prosperity but the morals OF the
people, vet there is little agreement to the prnci
pies upon which is based, that prefer to adhere to the
simpler elements for purposes of illustration When we
read that up to year 1850 the total budget OF revenue
and expenditure OF the United states, though II nad
doubled within ten years did not efeeea =, 1 oo oco
that before the outbreak Of the civil war there a never
been income raised by the United STATES irS excise @
fore the civil war exceeded 1000 600 at its
in iss9 reached in isGO only $65oOOOO6 against
four years later tnat Inc fe'ende emu Ipo ron
purposes was at time sufficient not only to pay OIL
the debt at high premium but 10 leave surplus Tor
distrbution among the States while at another it fell off
fo such an extent as to cause a serious deficit in the
mai balance shec-t Is evident that the administration
the Treasury did not call for or present any great ex
hibtion Of financial skill. ,,, , -


Before dwelling upon the peculiar conditions OF or
financial administration when nave iniue tnesclHes @
can shown to have been always III existence Wish 10
review course Of events IN many essots t H
themselves ncOmparaDy greater dlllculties Inc Ming
dom Of Great Britain emarsea w, ebt m Of
sum- II need not be said vastly greater than would De con
veyed by the same figures to-day even ON you piss
interest fallen nearly to 80 per cent OF It's par value
a point in which certainly have not the advantage.
that lie was selling bonds below par six per cents
did fall below 4O the real difference being that the profit
the domestic fundholder II must be kept In mind. too,
that there not at that time several wealthy nations
into any investment not regarded "a absolutely des-
peratc. Not only could not Great Britain 9orrOw, @
during that tremendous struggle. That she was com
peed therefore, to resort to forced paper currency Is
at the worst period TO more than 20 per cent discount
or to adopt the more popular % ri, it an goa h
advantages of modern finance, the price OF gold In our
paper touched 290 There is, probably no single propo
ston which has involved much cost to this country
that the Government debt must not he sold below par;
policy which, in view OF the quotations OF our bonds IN
foreign markets. reminds Of the ostrich which Is said
suppose itself perfectly concealed by bryins IFS head
in the sand Within six years from me close OF the war
specic payments were resumed by Great Britain, aud
have since been maintained against which we find
that after lapse Of ten years this country has not made
that 10 all appcarancc we are az far from as at The
of the The experience OF Great Britain IN this re-
spect ought to be the greatest practical value TO u.s.
but while the facts form a bone OF contention even
among experts far as the instruction derived from
by Congress the Government IL concerned one would
never suspect that such history existed y .


pass over the years preceding TIE passage of the first
reform bin because it was only subsequent TO that date
that was commenced the series Of reforms not merely IN
raons 'W Which, Whatever we may think Of the actual
condition OF the people or OF tne Ga Ter
English Government the first place either I'D ancient or
modern times The financial situation at the close of the
third decade Of the century was unsatisfactory III me
S7OOOOOO; that OF 1899 deficit OF 900 that OF
that of iSl2 was estimated fall shori by 20OOO0O
involving increase Of debt of $31OOOoOO within ave
years; the most alarming symptom that The decune
of revenue took place in the great items OF customs and
excise attempt to increase the receipts by raising Ihe
taxes in these branches having actually resulted III
decrease Business In all branches depressed pau
perism increasing and the people despondent ~ was al
this that Sir Robert Peel came forward WIN
uroposal for the application of the income tax sr


ent which had lam in dsuse since the close OF the war


How many men in this country know anything of the
nature, the arguments for or against or the probable
vidual character talent is identified with either Of
them IIatchcd in committee ROOMS under The stimulus
of party discipline We find them borne on by party ma
jOrity determined 10 carry them by brute force ana the
gag The minority have no means OF resistance except
and reiterated counting OF the House the contest being
reduced to one of purely physical endurance Do not
merely question Of endurance In men.


proposing the imposition OF an income tax. the prn
cpa object Of sir Robert Peel was to restore the public
credit and provide "a surplus instead Of deficit, but an
other and hardly less important one was to furnish The
the risk of disaster from disappointed expectation
and 750 articles in the tariff, repeating the export duty
upOn British manufactures. In the comparative
with which taxation has been borne -, in tins
of the relief which was thus afforded to a de-
pressed and burdened industry The first year Of the
which, if the minister had been subject party at
tack without any poTer Of spGaAnS IN Ills Own Pn deens m
able explain to Parliament tnat the failure was mainly
svstem ~ Which i in few years yielded such brilliant re-
suits and carried the country through the crisis OF 1s47
at all of the public credit In 1s47, the Peel Ministry
signed and we need only remark how perfectly under
served, Sir Charles Wood basing his calculations upon
the principles and results of those OF his
and Lord John Russell renewed the income tax after
discussion To quote once more the OF the
ncr financial policy of its predecessor and had not
only renewed the most important OF It's measures, but
had renewed precisely in the form in which 1t had at


TO those who to pursue the subject further will
recommend the perusa Of volume Of the Financial
statements Of Mr. Gladstone, statements which said
have held not only the House OF Commons but large
silent attention. and in which forth in the
general scope and the most minute details III their work
past and proposed financial measures. glance at
only one item: In 1872 customs duties were collected
AGO. in 1859 upon 4l9; while in 1860 the whole revenue
from this department derived from 4S articles II IL
were possible for to achieve for himself the posi-
ton Gladstone in making such statement do you
think should Ed lack OF talent competing for II


remark more that tho point to which wish to
drcc: attention in English finance Is not the wisdom Of
any particular measure or set OF measures. For in
do discuss the question OF free trade which
is such passion with every Engshman II has doubt
less added to the wealth Of Great Britain but may bo
that the consequent dependence upon foreign countries
may involve suffering the population In the
OF general war. In like manner the Bank act OF 1874
whether with not has called forth the btercst
opponents. Again, make comment upon the policy
which has always preferred the reduction Of debt or
comparison Of this with policy practice Of reducing
debt the neglect, worse OF the currency. would
point out that the finances are treated whole that
Of the present framed with reference
once 10 the past and future, and that when object
attained has been agreed upon, 10 Is kept steadily


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