National Republican., 1878-12-03

Interior Department. l. t61 TS7 70
Pustofliee Department l.dsiTOl y
--siGss.50 .50S Il
mentor state. e................."....... 1ll,sil ~
Net increase I.G53 81
Earnestly dcsirous Of cooperating with Con-
gress in the reduction of expenditures to the
lowest sum consistent with the proper
execution Of the law the Secretary has
reduced the expenses Of the customs service
during the last fiscal year compared with
the previous year, in the sum of SUS,-
f'R.21, and herein recommends changes
of the law which will enable him to make
further reductions therein. The great body of
expenditures is fixed by laws which leave no
discretion to executive officers. Tho reduc
ton Of appropriations does not reduce expen-
ditures when the law requires the service to
be performed, or fixes the salary and number
of employees. It must be accompanied by Il
careful revision of tire laws, felucing the Ob-
jeets Of expenditures or the number or com.
pensation ofemployees. 1t is believed that by
such revision, especially of the postal laws,
aud by limitation Of tho amount of appro-
priations for public works in progress, by the
postponcment Of new works not indispensable
for the public service, and by judicious seru-
tiny Of disbursements, that the expenditures
for the next fiscal year need not in the aggre-
gate exceed the appropriations for the present
fiscal year.
The estimate Of revenue, based upon existing
law Is ~, ,136 12l 30 more than the actual revc-
nue Of the past year This estimate can only
be realized by strict and impartial enforcement
OF the revenue laws. This l. not only q legal
duty Of revenue officers, but is the right of
every honest taxpayer. The enforcement of
the tax ON spirits and tobacco has in some
places been resisted by formidable combinations
too powerful for tho Department., with the
forces at its command. to overcome. The Gus
toms duties, in many cases, have been evaded
by smuggling, fraud. differentiation, and false
claims for drawbacks and dAmage-allowAnce.
Some OF these distractions are incident to the
execution OF any tax law, but many of them
may be overcome by such notifications Of the
laws as are hereinafter recommended.
1t Is manifest, from these estimates, that,
however desirable it may be to reduce existing
taxes 1t ought not now he done except by sup
plying the reductions from other sources OF
revenue. Stability and certainty in tho rate
and subject Of taxation are Of great Importance,
and therefore, the Secretary recommends that
no change be made in them during the present
session, except to convert certain al rdiOTrm
duties, hcrciI after stated into specific duties.
RESUMPTION OF SPECIE PAYMENTS.
The important duty imposed on this De-
partmcnt by the resumption act approved
January Ii, lS15. has been steadily pursued
during the past year. The plain purpose OF
the act Is to secure to all interests aud all
classes the benefits of sound currency, re-
dccmable in coin, with the least possible dis
mrbance of existing rights and contracts.
Three Of Its provisions have been substan-
TALLY carried into execution by the gradual
substitution of fractional coin for fractional
currency, by tho free coinage of gold and by
free banking. There remains only the com
plcti0n of preparations for resumption IN coin
Oh the lst day of January. lSIO aud its main.
tguluce thereafter tho DuslS of existing
law.
At the date of my annual report to Congress
In December, lST1, II wits lcumcd necessary
as Il preparation for resumption to accumulate
III the Treasury n coin reserve of at least 30
per cent of the amount Of United States notes
outstanding. At that time it was anticipated
that under the provisions Of the resumption
act the volume of United States uOtvs would be
reduced to S3DOOOOUOO by the lst day Of Jau.
uaTy, l-19 or soon thereafter, and that a re-
serve in coin Of $l2O,OOO,OOO would then be
sufficient Congress, however, in view Of the
strong popular feeling against q contraction of
the currency, by the act approved May 81,
ISIS, forbade the retirement Of any United
States notes after thatdate leaving the amount
In circulation S3iBGsl Ol6. Upon the pTiuci.
pie of safety upon which the Department was
acting, that 10 per cent. Of coin was the small
est reserve upon which resumption could pru-
dCmtiy be commenced, 1t became necessary to
At the close Of the year l-11 this coin re.
serve, in excess Of coin liabilities, amounted to
S63.OlG,OJO 06, OF which $l5ODlOCO wero OBJ
tanned by the sale Of four aud half per cent.
and 250OO 900 by the sale of per cent bonds,
the residue being surplus revenue. Sub
tequcntly, on the 1lth day of April, l5S7,
the Secretary entered into contract with
certain bankers in New Yorl; and London
the parties to the previous contract Of June o,
lsG1, already communicated to COngrCsS-ior
the sale Of s6OOOO,OOO Il per ccut bonds for re-
sumption purposes The bonds were sold at n
premium Of u per cent. aud accrued interest,
less II commission of Ono-halE OF ! per cent.
The contract has been fulfilled, aud the nut
proceeds, jD,jOOOOD have been paid into the
Treasury in gold cUiu.
The S5,5Oo,OC0 coin paid on the Halifaz
award have been replaced by tho sale Of that
amount Of per cont. bonds sold for rcsulnp-
ton purposes, making the UggICgptc amount
Of bonds sold for these purposes Suj5O0OUO, oi
which SOJ,OOOuOU were ~ per cent, bonds and
sjO,5DO,OOu per cent bonds. To this has been
added the surplus revenue from time 10 time
The amount Of coin held in the Treasury ol
the .H day Of November Last, In excess Of coli
suli, .rml to pay all accrued coin liabilities, wa
Slii ,-e5 100, aud constitutes the coin rcserv,
prepared Tor resumption purposes. This sun
will be diminished somewhat on the lst q
january nest by reason OF the large amour
Of interest acCrung on that day in excess o
the coin revenue received meanwhile.
IN anticipation of resumption, and in view
of the iuct that the redemption Of Unitc'
States notes is mandatory only at the office 0
tho. Assistant Treasurer in tho city Of New
York, 1t was deemed important to secure tn
cooperation OF the associated banks Of tina
city In the ready collection Of drafts on thOs
banks aud In the payment Of Treasury draft
held by them. satisfactory arrungcmon
has been made by which all drafts on tn
banks held by the Treasury are to be paid a
the clearing house, and all drafts on tn
Treasury held by them are to be paid to TIN
clearing house ut the Office Of the Assistan
Treasurer in United States notes and afto
the lst Of January, United States notes ar
10 be received by them as coin. This vii
greatly lessen the risk and labor of collection
both 10 the Treasury and tho bauks.
Every tcp IN these preparations for resump
tioH ha, been accompanied with increased busi
ur-s aud confidence. The accumulation o
G0iH. instead Vi increasing its price, Us wac