Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1871-12-06

loJtOtVoO ~
Indian affairs. Observation-Disclosures. 5,4456l 81
Ienslohs' 3O4SU,UOO W
Public works. Observation-Disclosures. l9,46S562 ~
fostai service ACKNOWLEDGEMENTS, 64l4OOl 0,
Miscellaneous. Observation-Disclosures. II 25S326 A.
Permanent appropriations 126,2S1 974 O
Sinking fund. ,;...,....,....;...... 2,S95,990 Of
Interest upon the capital of the sink
ing Iunu b,iS3,oO5 TX
Total 1901 105,036 9s
These estimates show balance of S5I ,294
963.O1 applicable TO the payment Of the prnc.
| pal of the debt in addition to the sum of SIS.
| 6I9,26S, due on account of the sinking fund, or
the sum Of SS5 1914, 22601 in ALL In the estimates
for the next fiscal year have not included the
receipts of the premium on gold which may be
sold, nor in the expenditures the premium
which may be paid on bonds to be purchased in
| currency.
HOW TAXATION MAY BE REDUCED.
In the suggestions have the honor to make in
reference to the reduction of taxes, | keep in
view two important facts First, the ability of
the nation TO pay at least $50 900 900 annually
of the principal Ofthe public debt and secondly,
that in the change OF the revenue system no vio-
ence shall be done to the business interests of
the country. While do not undertake to STATE
precisely the causes which have contributed to
the public prosperity, there is no substantial
reason for questioning the truth of the state
ment that the last few years have been the most
prosperous in the history of the countrv--years
without example in our own affairs and without
parallel in the affairs of any other govern
ment. 1t is practicable TO dispense with all the
revenue from internal services except that de-
rived from the stamps of spirits, tobacco and
malt liquors. These sources should furnish for
the year 1872 and 1878 a revenue of about S110,-
100000, making u reduction of taxes OF S16,O00,-
OOO The revenue from customs under the cX-
listing loans and from lands and miscellaneous
sources would amount TO about 1888 100000
| more, making total revenue for that year of
| SAB ,OOO,000. The expenses of the government,
| not including the amount payable on account
OF the sinking fund, are estimated at 1918, OPS,
1889. If TO this sum be added $50, 900
for payments on account of the public debt, in
GLIDING the amount due on the sinking fund,
there remains a balance of about 800 600, 600
within which reduction may be made in the
revenue from customs. This amount added TO
the reduction proposed under the internal
revenue laws gives total reduction of $50, 000,-
900.
REDUCTION AND REMOVAL oP CERTAIN DU.
TIES RECOMMENDED.
In this view | respectfully recommend to the
consideration of congress the reduction of the
duties on salt to the extent of fifty per cent; the
duty on bituminouS coal to fifty cents per ton ;
the reduction of the duty on raw hides and
skins, and the removal Of all duties from Il
large class of articles produced in other coun-
tries, which enter into the arts and manuiac-
lures OF this country, and which are not pro-
duced in the United States, and the revenue
with the revenue derived from each article, is in
course OF preparation, and will he submitted to
| congress. The removal of duties from large
| class of articles used in manufactures and the
reduction of the duties upon coal furnish an OPP
| pOrtunity for moderate decrease in the rates
OF duties upon those products whose cost will be
| diminished by these changes. While nothing
as the consequence of legislation could be more
disastrous TO the public prosperity than apUlicy
which should destroy or seriously disturb the
manufacturing interest of the country, it is
| still possible, by wise and moderate changes
adapted TO the condition of business and labor,
| to reduce the rates Of duties with benefit TO
| every class OF people.
GOLD AND PAPER.
The average premium ON gold for the year
1868 was 80 "a per cent; for the year 1869, 30 sc
| per cent; for the year 1870, 1888 per cent. For
the tirst eleven months of the year 1871 it was
| l2.Ol per cent premium. The value of the pa.
per currency of the country during the years
| 1869 and 1870 was apparently appreciated by
| the increased use OF paper money in the south,
but chiefly by the establishment of the credit OF
| the United States upon a firm basis. On the lst
| OF January, 1871, the last named fact was fully
| accomplished, and since thar time the apprecia-
ton OF the paper currency has been due wholly
| 10 The increased demand for il in the business
affairs of the country. The difference between
the value OF paper money at the present mo-
ment and its value on the first of December
LOW may bC 10 the lhtlcI CAUSE, anu
furnishes the best means which the country has
yet had for aScertaining the quantity of paper
currency which can be used and its value kept
at par with gold. The result of this test con.
ours with what seems to me TO be the best
opinion upon the subject, that the amount o
paper money IN circulation is still so great thai
| II cannot be maintained in value at par will
| com. There are two modes of relief. One is tC
reduce the volume of currency, as was recon
mended by me in my annual report submitted
10 congress in December, 1869. The othel
mode Is to await the growth of the country anC
the increasing demands OF business, which in
time will produce the desired result. The chic
means of securing the end sought without re
dnction in the volume of currency would be the
use oil paper money on the Pacific coast. With
this object in view steps have already been
taken by this department for the purpose of as
certaining whether ii is practicable to substi
tute paper for coin, and have reason to antici.
pate thar change may be made in the laws
relating to national banks, tending to that re-
suit, which will not affect unlavorably the gen.
eral character Of the system.
The secretary points out 1.-THE evils attending
the payment to customs officers of shares in the
penalties for fraudulent importations, and rec
ommendS the repeal of the laws providing for
such payment and the increase of official sala-
ries TO a reasonable amount, which can be done
'A''A'' "hl iuNiNt7S Vi appropriations iiOul buG
treasury.
He reports that las national banks have been
organized under the provisions of the law OF
July II, 1870, and s22,833,9 800 of ffty.iour
millions of bank circulation authorized by that
act have been issued. He advises that the re-
mainder of that circulation should not be issued
until it is called for by the banks in states which
have not yet received their proportion. In re-
gard to the subscriptions to the new bonds he
says that the national banks have, on the whole
acted literally but adds that it is reasonable to
tender to them the opportunity of taking the
lower interest bonds to the amount of the de.
posts required as security for their circulation
and, on their neglectng to do so within ninety
days, Offering the same opportunity to new
banks, which may be organized in the several
states, TO which new banks the circulation of
the old shall be transferred. The banks now
organized cannot, he thinks, complain if, hay.
ing the opportunity to pursue the business upon
the new bonds and declining it, other associa-
tons shall succeed to their franchises.
The business Of the bureau of engraving and
printing has been successfully carried on A
new issue of national bank notes is recon.
mended, as those in circulation are much worn.
and.seyeral have been successfully counterfeited
New government buildings at Chicago are rec.
commended. Those elsewhere ordered are going
on prosperously, and no appropriations for
Others are advised. Some details of the coast
survey, the revenue marine and the marine hos
pital service are given, and these are all repre-
scented to be in a generally satisfactory condi-
ton. The organization of a mint bureau is ur-
gently recommended. Provisions for obtaining
complete returns of the internal commerce of
the country are also recommended.
The attention of congress is called to the in
equality of the salaries of bureau officers and
heads Of divisions in the treasury department.
The first controller receives $4,000 per wear
while the second controller whose duties are
similar and hardly less important, receives only
$1,000. The solicitor Of the treasury has $500
and the solicitor Of internal revenue, sub.
ordinate officer, has $4,000. Similar discrcpan
cies exist in other offices, and should be removed
by increasing the salaries of officers now made.
quately paid. The secretary recommends, also,
| that the solicitors of the treasury and intorrol