Year: 1873

nancial Situation.


his opinion of the financial condition of the
country and Of his department since writing
the letter of the 18th of this month to Mr..
Dawes, the chairman of the Committee of
Ways and Means. He has learned a great
deal in ten days. We sincerely commend him
for his aptitude. There is no one SO high in
position or so able that he may not learn
something A stubborn adherence to ones
opinion in the face of opposing facts shows
narrow mind. Mr.. Richardson thinks now,
if we can rely upon the news from Washing
ton, that the condition of the government
finances presents q more hopeful aspect than
when he wrote his letter to Congress This
letter it will be remembered was of the same
tenor as his report to Congress at the begin
ming of the month as regards the necessities
of the Treasury, only it appeared to be more
urgent for the imposition of fresh taxes to the
amount of forty millions. He even presented
the bills to the Committee OF Ways and
Means, and asked Congress to pass them at
an early day. We have shown from the first
and throughout the discussion that the govern
ment could and ought to get along without
additional taxation. Though MIR. Richardson
has not come quite around to this opinion, he
is approaching it, and we have hope in him.
We are told that signs of reviving activity
at home and in importations are already per-
ceptible in the revenue, and there is every in
dication that the increase, though yet small,
will go on till it approximates, if it should not
entirely reach, the old figures. This, it is
said, is the present view the Secretary has of
the financial situation and prospect. Still he
wants to feel secure, and hopes Congress will


take some action to provide for possible con-
tingencies. The best provision that can be
made is to reduce the estimates thirty or forty
millions, for the expenditures have been on
too extravagant scale. They have led to
jobs, corruption and decentralization. The
more economical the government is and the
closer the revenue fits the expenditures, allow
ing always a moderate sum for o sinking
fund, the better it is for the morals of the
country. Mr.. Richardson suggests that, by
using portion or all of the thirty millions
estimated for the sinking fund to meet the
current demands of the Treasury, he might
bridge over all his difficulties, but adds
that if there were no money convenient
to be applied to the sinking fund he would
not attempt to reduce the national debt.
Well, we think he and his predecessor have
been too intent on rapidly paying off the debt,
and that this has been the chief cause of the
financial troubles of the country and his en-
barrassment. A hundred millions or so year
taken from the pockets of the people and
from productive industry to say nothing of
the cost of the expensive ofice-holding ma
chinery to collect that sum, bore heavily upon
all classes. A sinking fund of twenty to
thirty millions year would have been quite
sufficient until the country recovered fully
from the effects of the war The credit of the
government would have been promoted just as
well or better by such a policy. We have
necessarily come to that at last. There will
be no more hundred millions or fifty millions
year raised for the liquidation of the debt.
Yet it will be well to have certain sum, if not
over twen.y millions a year, applied
to the reduction of the debt. This, at COM
pound interest, would, in the course of some
years, show grand result, and the people
would be gratifed with such gradual but
constant decline of the debt. We think the
Secretary can have such a sinking fund, even
with existing taxation, if the estimates be cut
down and economy be practised


In this matter, too, Mr. Richardson, we are
happy to say, is coming to our views, though
he had not thought of it before. There are
he is reported as saying, many unnecessary
Offices and other sources of expenditure which
could just as well be abolished. He thinks
the laws creating them should be repealed.
Very good. We think the same Will he
point out to Congress the Offices that have out
lived their usefulness and are unnecessary
beginning with the Internal Revenue ser
vice? He does not hold himself respon-
sible for the estimates of the departments
of government other than of his own depart
ment While this is true there is no reason
why he should not, as the financial agent and
representative of the government, represent to
Congress where extravagant and unnecessary
outlays are embarrassing and might be
stopped. The official delicacy he manifests
should not deter him from doing his duty to
the country. From this reference to the
estimates of other departments he appears to
intimate that there might be an economical
revision. If the Secretary out of delicacy can
not speak of the estimates of other depart
ments, the President, as the head of the gov
ernment, can call upon them to revise their
estimates. At any rate the money appropr-
ating power Congress, and its agents, the
Committees of Ways and Means and ON
Appropriations-can insist upon q revision.
Unfortu nately Congress is too lavish of
the public money, particularly when it
sees a large surplus revenue, such as we