, 1877-12-15

the revenues OF the government compare,
with the previous wear lave largely ds
creased This decrease amounting to IT,
sum of SIS, ,4Sl ,i52 II WAS mainly in Gus
toms duties, caused partly by large fall
ing off of the amount Of imported dutia
bic goods and partly by the general fall {
prices in the markets of rroducticn e
such articles as pay al valorcm taxes
While this is felt injurious in the diminu
tiQn of the revenue it has been accomla
MED with very large increase Of expor
tatiUl, The total exports during the las
fiscal year. including coin, have bee,
SOS, ,6337 ,451, and the imports have beel
S492. .097 $40, leavin. balance of trad
in favor Of the United States amuuntn.
to the sum of Si6G, ,630, ,9I1, the beneficial
effects OF which extend to all branches o
business.
The estimated revenue far the next lis
cal year VIII impose upon congress H.,
duty of strictly limiting appropriations
including the requisite sums for the man
tenance of the sinking fund, within tn,
aggregate estimate Of receipts.
THE TiEIFF AID REVENUE LAWS.
While the aggregate Of taxes should
not be increased. amendments might be
! made to the revenue laws that would with
out diminishin. the revenue relieve the
/ people from unnecessary burdens. \ tax
on tea and coffee is shown by the eXpe-
/ rience, not only of our own country but
/ of other countries. tn he easily collected
without loss by undervaluation or fraud
and largely borne in the country Of pro
duction \ tax of ten cents per pound
OF coffee would produce a revenue exceed
ing twelve million dollars and thus enable
congress 10 repeal multitude Of annoy
ing taxes yielding revenue not exceed
my that sum. The internal revenue sys-
tenn grew out of the necessities of the
war and most of the legislation imposing
taxes under this section has been repealed.
BY substitution of Il tax on tc;, and coffee,
all forms If internal revenue taxation
may be repealed except that On whisky,
spirits, tobacco and beer,
Attention is called to the necessity of
enacting more vigorous laws for the pro-
lection of the revenue and for the punish
ment of frauds and smuggling. This can
be done b. judlciOus provisions that Will
induce the disclosure of attempted fraud
by ndervaluation and smuggling. All
revenue laws should be simple III their
provisions and easily understood So far
Us practicable the rates of taxation should
be in the form Of specific duties and not
al valorem, requiring the Judgment OF
experienced men to ascertain values and
exposing the revenue to the temptation of
fraud My attention has been called dur
luz the recess of congress to abuses exist
Ing in the collection Of customs, and
strenuous efforts have been made for Their
correction by executive orders. The
recommendations submitted To the secre-
tary of the treasury bya commission ap-
pointed to examine mo the collection of
custom duties at the port of New York,
contain many suggestions for the m"dItl-
cation of the customs laws, TO which the
attention Of congress is called.
THE PUBLIC CREDIT.
1t is matter of coHgratulation that
the severe burdens caused
by the war the public faith with all cre,ii-
tors h;;s been preserved, and as the result
of this policy the publio credit has con-
tinuously advanced aad our public securl-
ties are regarded with the highest favor IN
the markets Of the world. | trust that
no act of the government Will cast d
shadow upoE its credit. The progress of
the public debt has been rapid |
and satisfactory Undercontract existing /
when | entered upon the discharge OF the
duties of my office, the bonds bearing III
terest at the rate of per cent were
being rapidly sold, and within three
months the aggregate sales Of these bonds
had reached the sum of S2O0,GGo, eco.
With my sanction the secretary Of the
treasury entered into new contract tor
the sale of per cent bonds, and within
thirty days after the popular subscriptions
for such bonds opened, the subscriptions
amounted to S74 ,496, 800, which We're
paid for within ninety days after the date
of subscription. By this process within
little more than one year the annual inter-
est On the public debt was reduced III the
sum Of s., ,7775, 800, and recommend that
suitable provision he made to enable the
people to easily convert their savings INTO
securities as the best mode III
which small savings may well be secured
and yield moderate interest, 1t Is an
object of public policy to retain among
our OWN people the securities Of the |
United States. In this way our country |
Is guarded against their sudden return |
from foreign countries, caused by war or |
other disturbances beyond our limits.
OUR SHIFTING INTERESTS
The commerce of the United States
with foreign nations, and especially the !
export Of domestic productions has OF /
late wears largely increased, but the greater /
norton OF this trade is conducted III foreI9n |
vessels. The Importance OF eniarglng our
foreign trade and especially by great and
Sneedv interchange with countries on this
continent cannot be OyerestImated, and 1t
is matter Of great moment that our own
sbippine interest should receive, to the
ptmnst practicable extent, the benefit OF
onr commerce with other lands. These
are forcibly urged by all
the large commercial cities Of the country
and public attention is generally and uni
yersallv attracted to the solution OF the
problem they present. II is not doubted
that congress will take them up m the
broadest spirit of liberality and respond
10 the public demand by practicable lea9s-
lation upon this subject
The ARMY.
The report of the secretary OF war
shows that the army has been actively
during the year and has render