Year: 1871




Payments.


Our special Washington correspondence has
conveyed the important intelligence that the
President will recommend in his Message to
Congress, asweeping reform in taxation and in
the financial policy Mr.. Boutwell, has been pur-
suing. This we have been urging for some
time past. and 1t is gratifying to know Gen.
eral Grant has arrived at the same conclusion.
Whatever may be said Of him, or whatever
mistakes he may make, II must be conceded
that the President has the interest of the coun-
try at heart and that he Is honest In his pur-
pose, and that when he becomes we'll Informed
on any question Of public policy he will take the
responsibility of recommending 1t whether his
views accord with those of the members of his
Cabinet or not. He sees now. undoubtedly,
that the policy Of the Secretary Of the Treas
ury in keeping up system OF burdensome
taxation is mistaken one He Is prepared,
therefore, according to the statement Of our
correspondent, to take the initiative In re-
versing that. In this matter, then, Mr.. Bout
well will have to follow his chief; consequently
We may expect the report Of the Secretary
will be in accord with the Message. That is
the proper position for Mr.. Boutwell, to oc-
cupy-the position merely Of the head of
department. or Of q sort of chief clerk to the
President-for he has shown no capacity as q
finance minister.


1t is understood that the President will re-
commend Congress to abolish all the inter-
nal taxes, except on spirits, malt liquors,
tobacco in different forms and stamps.
The exception of stamps, however, might
cover wider field, and we hope
by this no large amount of ia xation by
stamps is contemplated. Spirits, liquors and
tobacco are proper articles to be taxed, and
that as high as they will bear 1t, without risk
Of the revenue being defrauded or making it
difficult to collect the tax. The best revenue
policy is to collect the greatest amount pos
sible from few articles of luxury In general
use, especially from such as are rather in
furious than useful to tde community, and
spirits, liquors and tobacco come under that
category. The revenue system of Great
Britain, which has been brought nearer to per-
fection than that of any other nation, is based
upon this principle. Not only do the people
feel the burden less, but vice is checked, the
revenue system becomes simplided and CON-
paratvely small force of employees is required
to collect the dues of government. Conse-
quently the current expenses of the govern
ment are greatly reduced, and o host of men
are sent from clerical offices to produc-
tive employment. The reform promised in
our revenue system, together with a
thorough reform in the civil service, would
reduce the force of government employees
greatly, save many millions of dollars year
to the Treasury, and check effectually the de-
moralization that springs from ofice-holding
and offce-seeking.


But as the President has resolved to enter
upon this necessary reform we hope he will
not recommend or be satisfied with half meas
ures. The revenue should be cut down hum
dred millions q year at least, and we think it
| might be safely reduced q hundred and fifty
millions. Two hundred and fifty millions
ought to be ample for current expenditures,
the interest on the debt and q sufficient mar
gin for paying of portion of the principal of
the debt. The debt interest is less than
hundred and twenty millions, the expenditure
for the support of the government ought not
to be hundred Millions and with revenue
of two hundred and fifty millions there would
be margin Of thirty millions more for
contingencies and nquidating the principal
of the debt. With the present system of
taxation the Treasury would derive an income,
we have no doubt, the next fiscal year, Of four
hundred millions or thereabouts. We repeat,
then, that reduction of taxes Of o hundred
millions to hundred and fifty millions can
safely be made. We hope the President
therefore, will not take any half meas
ures, nor be influenced by the Secretary or
any other party in his action, but will recon-
mend sweeping reduction Of taxes, and the
reforms needed. In this, too, let him not
neglect the tariff. A great Improvement is
necessary in that. In reducing the revenue
to the standard we have named, or even
lower, there will be an opportunity to modify
the tariff so as to improve our shipping inter-
ests aud to give an impetus to commerce, at
the same time internal taxes are taken off
and the whole system simplified. 1t may be
more difficult for General Grant to touch the
, tariff than internal taxation, as the protec-
tionists are powerful and comprise the bulk of
, his party but he is in an independent and
, most favorable position and should look only to
the interests Of the country. Let us have tariff
reform as well as reform in internal taxation.


With such a great reduction in taxation as
we have indicated the most important step
will be taken toward specie payments. The
country will bound forward in prosperity,
apprehension of financial disaster or q crisis
will be removed, industry, commerce and the
expectation of our products will revive, and