It can
only be met by loans or an increased revenue. While a large annual
surplus of revenue may invite waste and extravagance, inadequate
revenue creates distrust and undermines public and private credit.
Neither should be encouraged. Between more loans and more revenue
there ought to be but one opinion. We should have more revenue,
and that without delay, hindrance, or postponement. A surplus in
the Treasury created by loans is not a permanent or safe reliance.
It will suffice while it lasts, but it can not last long while the
outlays of the Government are greater than its receipts, as has
been the case during the past two years. Nor must it be forgotten
that however much such loans may temporarily relieve the
situation, the Government is still indebted for the amount of the
surplus thus accrued, which it must ultimately pay, while its
ability to pay is not strengthened, but weakened by a continued
deficit. Loans are imperative in great emergencies to preserve the
Government or its credit, but a failure to supply needed revenue
in time of peace for the maintenance of either has no
justification.
The best way for the Government to maintain its credit is to pay
as it goes--not by resorting to loans, but by keeping out of
debt--through an adequate income secured by a system of taxation,
external or internal, or both.
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