Prescott journal. [volume] (Prescott, Wis.) 1861-1871, 1869-12-16


greater than the requirement. and may
with safety be reduced; but as the fund
ing of the debt in four or four and-a
half per cent would reduce the annual
expense largely, thus, after funding ard
justifying a greater reduction of taxation
than would be now expedient, l suggest
a postpouement of this question until the
next meeting of Congress, as it may be
advisable to modify taxation and tariff
In instances where unjust or burdensome
determinations are made by present laws,
although a general revision of the laws
regulating the subject may be necessary,
still I recommend the postponement of it
for the present. l also suggest the re-
newal of the tax on incomes, but at a
reduced rate, say of three per cent; this
tax to expire in three years. With the
funding of the national debt as here sug-
gested, feel safe in saying that the tax
es and revenue from imports may be re-
dueed safely from sixty to eighty millions
per anGum at once, and still further re-
duced from year to year as the resources
of the country are developed. The re
port of the Secretary Of the Treasury
shows the receipts of the Government
for tie fiscal year ending June 30th. 49,
50, to be $3.50, 943,7 and the expend-
itures, including interest, bounties, DC,
to be 1921 400, 597. The estimates for
the ensuing year are more favorable to
the Government, and will, no doubt,
show large decrease of the public debt.
The receipts of the Treasury beyond the
expenditures have exceeded the amount
necessary to place TO the credit of the
sinking fund, as provided by law. To
lock up the surplus in the Treasury and
withhold it from circulation, would lead
10 such a contraction of the currency as
to cripple trade and seriously affect the
prosperity of the country. Under these
circumstances, the Secretary of the Treas
ury and myself heartily concurred in the
propriety of using all the surplus curren-
cy in the Treasury in the purchase of
Government bonds, thus reducing the in.
terest- bearing debt of the country, and
of submitting to Congress The question of
the disposition TO be made of the bonds
so purchased. The bonds now held by
the Treasury amount to about $75, 00O,-
900, including those belonging to the
sinking fund. 1 recommend that the
whole be placed TO the credit of the sink,
ing fund. s-es q.
The message indorses sympathy with
Cuba, but thinks the United States
should not interfere, and says that offers
of mediation have been rendered but not
accepted by Spain, and that several ille-
gal expeditions against Cuba have been
broken up. "o
Our Minister to the United States of
Columbia has been instructed to obtain
authority to survey for a canal across the
Isthmus of Darien- s.
The message asks an appropriation to
cover the expenses of Commissioners to
Lima, for the adjustment of claims. I'D
Spain, Peru and Chill have accepted
the offer of the United States to bring
about peace, and a Congress will be held
in Washington this present winter. s
The question of allowing thirty gun
boats to be built in New York for Spain,
to operate against Peru, has been refer.
red to the Courts. -
Our Representative has been with.
drawn from Paraguay, on account of is
war with the allies. =.
ALABAMA CLAIMS. t sat
Toward the close of the last admins
tration q convention was signed at Lon.
don for the settlement of all outstanding
claims between Great Britain and the
United States, which failed to receive
the advice and consent of the Senate to
its ratification. The time and the cir
cumstances attending the negotiation of
the treaty were favorable to, its accep-
lance by the people of the United States,
and its provisions were wholly made.
quste for the settlement of the grave
wrongs that had been sustained by this
Government, as well as by its citizens.
The injuries resulting to the United
States by reason of the course adopted
by Great Britain during our late civil
war increased the rates of insurance in
the diminution of exports and imports,
and other distractions to domestic indus.
try and production. In its effect upon
the foreign, commerce Of the country,
and in the decrease and transfer to Great
Britain of onr commercial marine, in the
prolongation of the war and increased
cost-both in treasure and ir liyes--of
its suppression, could not be adjusted
and satisfied as ordinary commercial
claims which continually arise between
commercial nations; and yet the eonven-
ton treated them simply as such ordina-
ry claims, from which they differ more
widely in the gravity of their character
than in the magnitude of their amount,
great even as that difference is. Not q
word was found in the treaty, and not
an inference could be drawn for it and
remove the sense of unfriendliness of the
course Of Great Britain in our struggle
for existence, which had, universally i'm
pressed itself upon the people of this
country. Believing that the convention,
fhns misconceivad In ifs SCENE and made