Inflation And Retrenchment

The New York Shipping List, in commenting upon the tinancial situatiou, uses the following sensible language : " Infiatioii meets with general disfavor in this locality, and is calculated to afford no remedy tor the existiug difficulties. It would only ad vanee priees and thus increase goverunient expenditures, while among the people it would revive speculative operations and teud inevitaily to bring on a revulsión more serious iu its cons?quenc;s than that from which we are now emerging. The impulse to business which it would iuipart wonld bo delusive and treacherous, and the nation would have to pay for it iu the end. It must ba remeinherud that whilst the nejwtfc f - - - - - r ■■ ■ mm ■ " - 'tíiiit- f njjm 1, it is ouly a temporary one, and that its pressure should be so distributed as not to in te rf ei e with the business of the country. Had there been no paniu there would have been no defioiency. The moment that business is restored" to its normal condition, and our inanufacturing, trading and commercial interests are agaiii active, the revenues of the goveruujent wilF begin to appreciate. If the estini.iti'S of the government deficiencies of $13.491 000 for the next fiscal year are auywhere near correct, there would certainly sfein to be no difficulty in inaking up the greater part of it by thorough retrencbment in the details of the official estimates for the next two yeare, particulnrly in the line of appropriationsfor public works. The nms nsked for under this head Hniount to over $33,000,000, and under existing circunistauces they may well be deferred. A very moderate iucrease of taxation only will be necessary if at the same time the government expendi.ures are sharply looked after, all leaks stopped, the number-of unnecessary offiuml employés dpcreased, salaries reduced, and douljtful and unuecessary appropritions rffused. If the income be inoreased and expenditures diniinished, the deficiency will disappear moresuddenly than it has come."