The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-12-04

Military 4,Uou, u
Naval establishment. 2zl6 IS5 u
inuian auairs. l.o,oss 70
Public works.
war Depart Observation-Disclosures. 2afl4ll %
l'9a1 re 90 90
an'tr'or Department.. -zl - w
department oil Agriculture. ............ 500 90
Assuming that Congress viii .ot increase tho aggrc-
gate nhtionai taxation at lime when all indusir' cs
are oppressed by the weight of local taxion the Sec
toaly that the aggregate appropriatlons
interest," ana sinking fund, should not exceed
sl4o Oo0, zoo. THIS will require the appropriations to
DC reduced al least Sill 100000 below tho stlmates
submitted aoove-a reduction that, the opinion OF
the secretary. can be made without cuppllng any
uIahcn " tue puoHc service. Reduction IL puulic eX
penditures cannot be secured merely by reduction Of
appropriations II must DO accompanied by careful
OF employees by reduction Of the amount expen ded
on pubic works nov progress; by posponcment I
ana oy udicious scrutiny OF disbursct Tho rapid
appreciation OF our money standard
should DO accompanied by diminished expenses IN the
PUBIC service. The revenue from duties on imports
having largely diminished, the expenses OF It's collec
ton should be reduced Old claims should be closely
scrutnizcd and any increase In any branch OF public
expenditure should DC arrested. The Secretary Will
not undertake IN This report 10 revise the estimates
ot the different departments many items OF which
arc submitted without recommendation. but urges
that tue appropriations based upon them, including
The amount estimated Tor the sinking fund, should
hot IN any event exceed the aggregate The esti-
mated revenues OF the government
SINKING FUND
In ihe iast annual report (page ~, my predecessor
stated that, had the OF the Treasury during
each fiscal year, commencing with 1862, been sui
ncicnt W make iitcral compliance with the condi-
lions OF the sinking fund law practicabc, total OF
s433 s4S2l6 " would have been applied TO that fund
july l. 1875 whereas the actual reduction o the debt,
including accrued INTEREST less CASH ~ the treasury
At that DATE amounted 10 S65S, 992, 226 A. On tho
same basis the amount IN the sinking fund would have
reached $40 3lS, SoS ~ the Isl oil July, 1871 on
which date tho reduction OF the debt, including ac-
crued interest less cash in tho Treasury since It's
hghes polntln 1860 amounted TO 5000 2a33@S IL, or
law 10 be provided Tor that lund. !.
&ft FUNDING raE NATIONAL DEBT.
The contract OF August "a, 1876. made by the SEQ
rotary OF the treasury Win certain parties Tor tue ne
COLLATION. OF $500. Coo 900 four ana one.naf per cent
BONDS, had 80 lar been executed the lat oil March,
1917 that OOO 600 had been sold 10 no associated
contractors, and calls mad been made for the redemp
the contract expired in terms on the Goth day OF
June, 1877, II contained stipulation shat might be
ten days. notice, alter The AIN Of March, is77 In
May last u became apparent TO the Secretary that by
favorable change III the money market, tour per
cont bonds could DC sold at par IN CON- with great adj
vantage 70 the governments and, availing himself Of
tho privilege secured by The contract, no gave
onc-ha per cen. bonds TO $500 COO ooo On tho llth
day OF May II was agreed that portion OF the latter
should be sold under the authority OF tho Resumption
act Tor resumption purposes, aud subscriptions were
rapidly made until the aggregate reached 1900 0oO
OF which $3.50 QUO were applied TO the redemption
OF an equal amount Oh SIX per cent bonds On the OH
day OF june 1871 the secretary entered INTO con.
tract with portion Of the previously associated par
bonds OF the United States authorized TO De issued
by the relundng This contract was In substance,
Both day OF June 1873, with the right reserved
the United States TO terminate u a. any timo after
Inc S1st OF December 1877. by giving ten days notice
thereof 10 the contracting PARTIES This contract also
contained stipulation, aS follows: - NE .#af h
II Is also agreed that the parties OF the second part shall
' IN soo the iour per Cent
Tour per cent coupon conso's OF the Of 500
from pubic notice Of such subscriptions. and in
roasury may prsscSe prior to the opening 81 the lists
and further to offer to tue the option Of paying
in INST aim nts extending throus IN three months
Under this contract, invitations having bcen pub
lisned subscriptions 10 this loan were opened on the
18Th Of June, 1877. Within The period Of thirty days
thereafter subscriptions had reached the OF
$75, i96, 800 which we're payable within ninety days
from the date OF SUBSCRIPTION. or on or before the
10th Of October. Every subscription 10 hesc bonds
has been paid and o tho proceeds $50 100000 have
been applied tho rcdempt0 Of equal amount OF
six per cent bonds. rhe residue has beon applied TO
resumption purposes as hereafter stated Tue an ual
reduction CT interest on the public debt thus maize is
US foiiows- seeNls ssN3ei t8e
By the salo OF $685. 90 900 TOUR and one
half per cent bonus So IT'S 900
BY the sale Of s5o,ooo,ooo -four per cent
bonds....... 1000 600
Aggregating. So ia, 900
THE FOUR PER CENT LOAN
In October last, after the payment OF tho popular
subscriptions, arrangements were perfected 70 open
further subscriptions TO the Jour per cent loan aud
call about TO issue Tor $l0 600 900 oil per cent
bonds but u was temporarily postponed by reason Of
the agitation OF The repeal OF the Resum ption
the remonetization OF silver, which the
leved would prevent further sales OF these bonds
For this reason they decned 70 offer Thorn, and no
further call OF six per cent bonds was therefore
made On the 18th OF june pending the subscrip
Jions the secretary informed the associates an Of
fetal letter. that as The government exacts in
payment tor these bonds their lace value
| IN gold coin, II was not anticipated that any
future legislation of Congress, or any action
any depafmrn o. inc ,a woud sanction
bonds or the payment Of the interest thereon IN coin
OF less value tnan tho com authorized By law at tho
time OF tner issuebcng geld CON- rhc general con
hdence OF the pubic that SO just principle OF good
faith would be observed by tue government, DOUBT
largely contributed 10 The success Of the loan. What
policy the government may adopt at any time In
It's system Of coinage IL should not reduce the value
Of the com 10 which pays ITS obligations below that
urges Congress give its SANCTION to TINS assurance
RESUMPTION OF SPECIE PAYMENTS
| 1876, tho Secretary Of tho Treasury is re-
CURED to redeem legal tender notes TO the amount
notes Issued, and t9 continue such redelnp-
tion, as circulating notes are issued, until there
shall be outstanding the Of $500 900 OF such
/ legal tender United otates notes, ana more In
obedience TO this dct there have been Issued, since
March 1877, TO national banks. 1895 OF ccu
lat,ng notes, aud there been redeemed, retired
cancelled ST. 500 100 oil United States notes, ieav
ing Outstanding, The lst inst, the sum OF
S35l 2ss BY the same act It Is provued that ON
alter the lst day OF January 1879, the secretary
| Of tue treasury shall redeem, III coin, the United
States legal ,eudcr notes then outstanding on lneir
/
tant OF the United States the city OF Now
York, in sums OF not esr than 500 "Aud, 10 enable
the secretary the Treasury TO prepare and prov de
Tor the redemption IN this act authorized required
he 10 authorized 10 use any surplus revenues,
IRON limo 10 time, In the Treasury not
Otherwise appropriated, and to issue, sell
and dispose Of, AZ not less than par, IN
CON- either of the descriptions OF bonds OF the United
STATES described the act Of Congress approved July
Ia, 1870, entitled Au act to authorize tne rcfunding
OF the national debt with like quatiss privileges
aud exemptions 10 the cxtcnt necessary 10 carry this
| nett efI iur
tue purposes Aforesaid
In Obedience tins provision the Secretary has sold
at par Tor coin $l5 900 our and onehaf per cent
bonds or $4,000, 600 during each Of the months OF
May, juno and July last and has solo SIS, 600 900 AT
par, IN CON, OF four per cent bonds 5000 00U Tor
| zach oil the nDnths OF August september, October,
| November and December or the coin thus received
900 have been sold for tho redemption Of United
states notes and the residue is In the Treasury. The
surplus revenue has also, under the same authority
been applied TO the redemption OF the residue oil
Uacd states notes not redeemed by the sale Of coin
above stated, and the balance held In the Treasury
| In preparation Tor resumption.
NATIONAL BANKS.