, 1875-12-16

The amount of money needed for the Sink
ing Fund increases zach Year. For tic fiscal
year 1875 it was estimated by tho Treasury
Department at 331 600 900; this fiscal year,
onding next juno, it is to be S3e QUO, 600;
and for the tlscal year 1877, $3t t,oG3,377.
The Sinking Fund was established by the inv
Of Fob. %, 1862, which created war debt
Of $3.50, ,000.000. This Inv directed that coin
received by tho Government from customs
duties should be applied: First, to tic pay
ment OF tho interest On tho public debt;
second, to the purchase or payment within
each fiscal yoar Of per cent Of the eutiro
debt of the United States; tho residue, If
there were any, was to be paid into the TTeas-
ury Of the United States. Tie interest of
the bonds purchased or paid under
the second provision above was 10 be
in its turn applied to tho purchase
or payment Of bonds for the Sinking Fund
Under this law, the bonds ndded to the
Sinking Fund were to bo accumulated in the
Treasury Department, but by the law Of
July G, 1870, the Secrotnry Of tho Treasury
was directed to cancel nil bonds belonging to
the Sinking Fund mud deduct tho amount
from the statements Of the public debt. As
this cancellation would stop tho interest on
tho bonds md lossen to TINT extent the ut.
nual addition to the Sinking Fund, the Sec
rotary was authorized 10 apply to tho Sink
ing Fund out OF the coin receipts from duties
sum equal to the interest that would ac-
crue were the bonds not cancelled. The
Tax bill passed ut It'd last session Of
| Congress to increase the taxea was originally
introduced as IN measure to protect the
| Sinking Fund and provide for the othor OK
| igcncios OF the Government"
In percLasing bonds for tho Sinking Fund,
the secretary could not iegaliy pay morn than
| par. Az tho bonds soon went abova par,
tho Secretary was authorized by the
eleventh section Of the net OF March 8, 1876,
| to redeem fve-twenties Tor the Sinking Fund.
This, We believe, is tho sum Of tho legialhtion
Of Congress- on the Sinking Fund.
| The Sinking. Fund act wss disregardod to.
sevon yea.s, and tho coin received by the
Government was devoted to The payment ot
interest on the debt and tho expenses Of the
War. During Secretary DourwkLL'a admin.
istra' ion the annual purchases for the Sink
ing Fund were made in full compliance with
tho law. 8ocrstary RICHARDSON disrcgarict
the law again, aud gayo the expenses ol
the Government preference to tho Sink
ing Fund, not caring to faoo the def
cit that would otherwise follow. Socrctar,
Halsrow laa complied with the strict pro
visions Of tho law, applying tho customs 70
coipts to the interest on tho debt, frat tn,
Sinking Fund, second; and the appropria
| Il oGn
tn hla accounts, but the responsibility tor thai
lie throws Oh Congroas, which must eithoI
modify tho sinking Fund lnw or provide tn
ways and means to meet tho combined re
quire,nenta OF tho interest on tho debt, th'
! Sinking Fand, aud the ordinary expenses o
. Government. In bis Inst report tho secre
tary states that he rugards the Sinking Fuut
81 sscondsry only to tile payment Of intdres
on the debt, and as taking precedence Of al
other appropriations.
The first purchase Of bonds for tho Sink
ing Fund was 1nada by Secretary Dou7we1,
May u, 1868, whcn he bought ~ 200, 600 0
bonds as ID. es in gold. Up to Sept. oa, 1879
tho purchases Of bonds amounted to SY21,
253, 600, costing in gold $3o7, 70.,.07. De
tween the panic and tho accession Of Secru
tary Da1srow to the Treasury portfolio n
, purchases were made. For tho fiscal yea
1876, Secretary Da1srow bought or sedeeme
for the Sinking Fund 1881, ,09U,54 OF bonal
aud Tor the fiscal year 1870 states that l.s vii
/ buy or redeem tho Ss3, ,li0,pli OF bond
! needed for the fund. Alr, DAWES, in III
rather sensational speech last February, pr,
. sentiug tbs Tx bill Of the Ways and Meat
, Committee to the House Of Representative
predicted that tue deficit Of the Yreasu,
c would reacl. s35,ooo,oo0 unless thv ne
: taxes proposed were lovied. The daicieno
= reached l7,9o0, ,00U for the fiscal year 1871