Year: 1871

the financial policy Of the Secretary is just the
same as It has been all along, and that the
notifications he recommends really amount to
very little. This policy is to raise an enor-
nous revenue and to have in his hands all the
time vast surplus for paying on the public
debt. 1t is his al-absorbng idea. He makes


everything bear upon and depend upon 1t.
Even the credit of the government, In his
| opinion, cannot be sustained without that. II
is the Alpha and Omega of all his financial
knowledge and policy. Truly, it may be
said, he is q man Of one Idea. No


miser ever clung to his money bags
more tenaciouslya than Mr.. Boutwell,
clings to the revenue system which keeps the
Treasury chest gorged and hundred mil
lions or more of dollars always unemployed
in his possession. The reduction of taxes he
reluctantly suggests hardly amounts to as
much as the prospective increase Of income
from the natural growth Of the country. If
Congress should go no further in reducing
taxation than he recommends, there will be at
the end Of the current fiscal year as large
surplus as there was at the end of the last and
as there is at present. He is so welded to
his notions thas he lags far behind the Presi-
dent on the question Of reducing taxation.
| The language of the Presidents Message
| evinces desire for more sweeping measures
in relieving the people Of burdensome taxes


than Mr.. Boutwells report. The Secretary,
| it is evident, Is not In accord with the Presi-


dent on this question. bg1eiE a5
| Taxes to the amount Of q hundred millions
| year conld be taken of, and then there would
be left an ample revenue for all the demands
upon the government as we'll as suf-


fcient sum for paying off as much of
the principal of the debt as is necessary.
| According to Mr.. Boutwells own estimates
the revenue for the current fiscal year will
amount to over three hundred and sixty-fve
millions. The first quarter has yielded more


than one hundred and seven millions. Every


one knows the Secretary always greatly under


estimates the income. He did so last year.
| Does any one suppose the revenue will fall off
| from hundred and seven millions the first
quarter of the year to eighty-six millions for
each of the remaining three quarters? Yet
that is what the Secretary has estimated We
have no doubt the revenue will be four hun
dred millions, or little short of that Now,
admitting that the expenditures will reach the
sum Mr.. Boutwell, has set down, two hundred
and ninety three millions OF dollars, hun
and still, rs we believe, there would be sur
plus to apply to the liquidation Of the debt.
But there ought not to be any such expendi-
lures. The interest on the debt will be
less than hundred and twenty-foar mil .
lions. There would be left then about
hundred and seventy millions for current
expenses ss:sse2 esselsslys Of interest Gg the debt.


The whole cost OF the government twelve years
ago was little more than third of this amount


To spend hundred and seventy millions year
exclusive of the interest on the debt is gross
travagance and leads to corruption and demor-
alzation. Then the reduction of hundred mil
lions or 80 of taxation would necessarily lessen
considerably the cost of government in col
lecting the rev snue. In fact, the revenuo
system might be so simplified as to save many


millions year and send or a host Of govern
ment employees to productive industry. '@
Mr. Boutwell, is mistaken in the views he
| expresses about large revenue and an enor-
nous surplus TO pay off the debt being neces-
sary to sustain the credit of the government


and TO facilitate funding the debt at lower in
terest. The consolidated and interminable
debt Of Great Britain would not stand higher
IL changed into time securities and put under


process of rapid liquidation. The very
4 cboro of riu oHdi


tional value for investment. If there
were any question Of the ability Of the
United States to pay the interest on the debt


the credit of the government would suffer.


But no one can doubt that ability. Nobody


imagines this great and rich country will not


pay promptly the interest or even the priuci-
1 pal in due time. The credit of the government


would be improved and our securities rise


higher, in fact, by good and economical


revenue system and by more gradual liqui-


dalion of the debt. The truth is, we fear,


that the Secretary is more intent on keeping


up large revenue for the purpose Of afford
ing protection to the New England manufac-
turers and of aiding host of Treasury cor


morants than of promoting the interests Of the
mass Of the people.


In everything we see the same principle of
protection and lavish spending Of public


money. The Secretarys absurd recommenda-


ton to give subsidies for shipbuiding accords


with his policy in other respects. We regret


to see that the President has fallen into this


dangerous protection trap. If one kind of


industry is to be subsidized why not another 2


Why not all Apply the principle


generally, and no one will fail to


see the injustice aud absurdity. To grant


such subsidy would be simply to rob the


mass of the people for the benefit Of few.


Let the government do what II can to promote


shipbuiding by taking of duties on the ma