New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-12-03

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Net fncrease ....-....-....-.......&4 E5I ees a
Earnestly DESTROYS Of cooperating with Con A, On,
reduction OF expenditures the lowest sun eousi.,s
with the proper execution OF the law the Secretary h
reduced The expenses OF the customs service dnr,n
the last fiscal year. compared with the previous -
the OF $779.492 25. and herein recommends chang
OF the law which will enable him to make further red,s
tions therein The great body OF expenditures "a ars
by laws which leave discretion to executive office.
| The reduction OF appropriations does not redu,s
| expenditures when the law requires the ssr
| vice to be PERFORMED fxes the salary and NM,
Der Of employees. Itmust be accompanied by carefu
revision Of the laws reducing the objects expenditure
or the number or compensation Of employees II IA h.
leved that by such revision especially the po.,,
laws, and by Limitation Of tbe OF appropr,,
for public works in progress, by the postpoueuen
of new works not indispensable the public service
and by judciOus scrutiny OF disbursements that the
pendures for the next fiscal year need not IN the 49,
gregate the appropriations for the present asca
| year.
The estimate Of revenue, based upon existing law 4,
6736l21 80 more than the actual revenue O. the mast
year. This estimate only be realized by strict and
impartial enforcement Of the laws This Is uot
only legal duty Of revenue officers but the right OF
every honest taxpayer The enforcement OF the tax on
spirits and tobacco has, In places been resisted by
formidable combinations too powerful for the Depart
ment with the forces at its command overcome The
duties IN many cases, have been evaded b.
smuggling fraud, differentiation, and false claims 70,
drawbacks and damage-alowaBce. Some OF these OBJ
sructons incident to the execution Of law
but many of them may be overcome by such modinea
ton OF the laws hereinafter recommended.
1t is manifest from these estimates that however de
sirabe may be to reduce existing taxes It ought
10 be done except by supplying the reductions from
other of Stability aud certainty In the
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.
cent convert certain advalorem duties, hereinafter
stated, into specific duties.
RESUMPTION OF SPECIE PAYMENTS
The important duty imposed this Department byths
Resumption Act approved January a. 1875, has been
steadily pursued during the past The plain pur
pose the TO to all interests and all classes
the benefits OF sound currency, redeemsbe 10 coin,
with the least possible disturbance Of existing righs
and contracts Three OF It's provisions have been sub
stantiay carried into execution by the gradual subst
tuition fractional coin for fractional currency by the
free coinage Of gold aud by banking. There
mains only the completion OF preparations for resump
ton in the LIST day OF January. 1872 and is
maintenance thereafter upon the basis OF existing law
At the date OF my annual report 10 Con-
eress in December, 1877. it was deemed neces
sary as q preparation for resumption to accumulate
In the Treasury coin Of at least 40 per cent
Of the amount Of United States notes outstanding. At
that anticipated that under the provisions Of
Resumption Act the volume Of United States notes
would reduced to S30OOO0000 by the list day OF jan
uary 1879 thereafter and that reserve In coin
II $12OOOOOOO would then be sufficient Congress,
however view of the strong popular feeling against
contraction OF the currency, by the act approved May
81 1873, forbade the OF any United States
after that date, leaving the amount In circulation
S3466s1 016 Upon the principle OF safety upon which
the Department acting that 40 per cent of coin was
denty commenced it became necessary to increase
the coin reserve TO S13S. 100000
At the close of the year 1877 this coin reserve in ex
OF coin liabilities, amounted to S630l6,0o0 80 oil
which $l5,OOO,O00 obtained by the sale CT 4ia
per cent and $25.OOO.O00 by the sale Of per cent
bonds the residue being surplus Subsequently
on the day of April 1873. the Secretary entered
into contract certain bankers in New York and
Londonthe parties TO the previous contract Of June9
1877 already communicated To Congressor the sale OF
S5O,OOO,000 Ala per cent bonds Tor resumption
purposes. The bonds solo Mt premium OF lis per
cent and accrued interest less commission OF onehaf
OF per The contract has been fulfilled, and the
net proceeds, $50 100000. have been paid into the
Treasury gold The IS 600 coin paid on the
Halifax award has been replaced by the sale OF that
amount OF per cent bonds sold for resumption pur
poses making tho amount OF bonds sold for
these purposes sos 100000 OF which $65 900 were
IIs per cent bonds, and 900 per cent bonds.
time to time The amount of coin held In the Treasury
on the 23d day OF November last In excess OF coin
sufficient to pay all accrued liabilities. $l4l
$685. lO0 and constitutes coin prepared for
resumrtion purposes This sum will be- diminished
some LIST OF January next by Of the
large OF interest accrung that day in excess
Of the coin revenue received meanwhile.
anticipation VI resumption snd IN view OF the fact
that the redemption OF United States Is mandatory
only the Office Of the Assistant Treasurer in the City
Of WORK. deemd important to secure the CO.
operation associated banks OF that city ip the ready
of those banks and In the payment Of
Treasury drafts held by them A satisfactory arrange
held by tine Treasury are 70 be paid at the Clearing
TO be paid to the Clearing House the office OF the As
Treasurer. Unied States notes aud. AFTER tno
them as coin This viii greatly lessen the rsk labor
OF collections both to the Treasury and the banks
been ascompaaied with Increased business aud conf
dence The accumulation OF CON- instead Of increasing
ts premium in the market The depressing and rpinous
losses that followed the panic OF 1873 had not din
ished In 1870 when the Resumption Act passed;
but every taken In the execution or enforce.
this act has tended TO tighten these losses ana
TO reduce premium coin so that now II Is merely
nominal The present condition OF our trade, industry
the @ IL
financial condlion, seem 10 justify the opinion rnat VIC
from ana after the LIST day Of January, A. ID. s7s.
MEANS TO BIZ EMPLOYED.
The means aud manner OF dong this left largely
to the discretion Of the Secretary but from the nature
of the duty imposed no must restore coin and bullion
when withdrawn the process Of redemption, either
by the sale of bonds the Of the surplus revenue
or OF tns notes redeemed from time TO time.
The power to sell any Of the bonds described In the
Rofundng Act continues after wen before resump
ton Though may be often used is essential to
enable this Department TO meet emergencies. BY It's
exercise anticipated that the Treasury &C any time