Year: 1873

Innatfon.


It has been evident since the opening of
Congress and the publication of Secretary
Richardson's report to that body that the
subject of the national finances must soon be
discussed 1t assumed unusual importance
yesterday from the debate in tho House of
Representatives, from the letter of the Secre-
tary of the Treasury to Mr.. Dawes, the Chair
man of the Committee of Ways and Means,
and from the resolution of Judge Kelley.
Though no definite action will take place till
after the holidays the matter will come up,
undoubtedly, Immediately on the reassembling
of Congress. We can form some idea, how
ever, from the occurrences yesterday what the
drift of opinion is in Congress.


The Committee of Ways and Means, as
represented by the chairman and other prom
inent members, had evinced no disposition to
accede to Secretary Richardson s recommenda-
ton to increase taxation for the relief of the
Treasury. The committee passed resolution
asking the Secretary to give his reasons in
writing for an increase of taxation, and why
he had selected the articles named in his
report as the proper objects of taxation and
also to inform the committee specifically as to
the expenditures and condition of the revenue
which render the proposed increase necessary.
The reply OF Mr.. Richardson will be found in
another part of the paper. He recurs to the
remarks in his report ''that, should there not
be revival of business at an early day and an
increase in the receipts over those of the past
two and half months, additional means
would be required to meet expenditures. In
that case he recommended additional taxation,
judiciously laid, so as to be the least burden
upon the people and business Of the country,
rather than resort to borrowing money and
increasing the public debt.


The Secretary then goes on to say that the
receipts from customs and internal taxes have
not materially increased, and that no con-
siderable augmentation is soon to be expected
under existing laws. This term, materially
increased" is little ambiguous. Does Mr..
Richardson mean that the receipts have not
increased much over those of corresponding
period, or over his estimates? Or does he
mean that they have actually fallen off? If
there had been any increase at all, as is i'm
piled by the term ''not materially increased,
we cannot see the necessity for more taxes.
But he means no doubt, that there has been
positive decline of the revenue. The public
will be rather surprised to learn, from his
statement to the Committee of Ways and
Means, that the public debt was increased
nine millions during the month of November,
that it will be still further augmented
the current month by many millions,
that the coin receipts are little more
than sufficient to pay interest on the debt and
other coin expenditures, that, therefore. it
will not be prudent to sell gold to give more
currency, and that eighteen millions have
been drawn from the forty millions legal tender
reserve to meet the current expenses of the
government He remarks further that there
remains only about twenty-six millions of this
reserve which can be used before the extreme
limit of the issue of United States notes
authorized by law will be reached.


He deems it necessary, in order to maintain
the public credit, that the receipts of the
Treasury be fully up to the ordinary expendi-
lures, for interest on the public debt and for
the purchase Of bonds for the sinking fund to
the amount provided by law He prefers to
have surplus revenue rather than incur
the risk of deficiency. He has selected
spirits tobacco, gas, railway and steamboat
receipts, express, insurance and telegraph
companies as subjects Of taxation, in order to
raise the revenue he demands, as they are in
his opinion best adapted for that, and because
the taxes would be collected with greater fa-
cility, and with less cost, than in any other
way. He urges immediate action, as he is
| somewhat fearful of the uneasiness of the peo-
pie, and as some time must elapse before the
laws could go into operation and the results
be obtained Mr.. Richardson says nothing
about reducing expenditures, which is the very
thing the Committee of Ways and Means
seemed to be most intent about.


The debate that sprung up in the House on
this same subject of meeting the requirements
Of the government was inspired, we presume,
by the apparent conflicting attitude between
the Secretary of the Treasury and the Commit
tee of Ways and Means. Mr.. Dawes seems to
have been very wary, and, to use colloquial
expression, on the fence. He was disinclined
to make direct issue with the Treasury De-
partment but could not refrain from refer
ring to reckless estimates. Mr. Garfield SUBJ
mitted resolutions for the reduction of esti-
mates. Mr.. Butler contended that taxation
would fail and advocated the issue of more
currency. Mr. Cox, speaking for his New
York constituency, expressed fear that an in
creased tax would be imposed upon tea and
coffee. He wanted the people to know what
fresh burdens they might expect. Mr.. Kelley
was very decided against additional taxation,
and seemed for the time to have the sentiment
of the House with him. He informally sub
mit.ed to the Committee of Ways and Means
the following resolution with notice that he