Evening star. [volume] (Washington, D.C.) 1854-1972, 1878-12-02

TIE amount due the sinking tund for the wear
1 was s-'a s."0el.Se leaving deficiency on this
| account q S;l.63a 4I9. 90.
compared with the previous nsca' year, the
reCciptS FOR ISIS have decreased l.a>i s96oa IN
| the following Items in customs revenue.
| semlaHnual tax on banks S2i Sl9S: IA sales OF
| government property. s>l,45>.o> n profits on
| coinaSe. Si.5N2.4I6.55; ana I'm m miScellaneous
! items. -. .261.140Sa There was an increase of
| S.+N'Ns.l' as follows: IN proceeds Cf sales OF
pubic lands, 80 5, iS9 69 in premium on sales OF
com, >6'S2la2; and In miscellaneous items,
| S9t'."'G 6-making a net decrease I'm the re-
ceirlS from al sources for the year OF ell, ,236,-
The decrease Of revenue is prnciaally due TO
the falling on In the receipts from iatcynal rev
| thue. which was probably caused bY the agita-
| ton IN congress, for a long time. oi the reduc-
| uol cl jIie tax on spirits and tohSrrA.
| The expenditures show an Increase OF s3,Sl-
| I2?.G>, as follows: In the NAVY Department
| s2.4a5 .0l, ard in the Interest on the puhis
| debt s5.3.d.S63.01. the latter OF which was due
| tothe large balance OF SI,426.6l9 ii unpaid In
| teleSl al tie commencement OF the year, and 70
| the change from semi-annual Ia quarterly pay
| mentS OF interest on SIX per cent bonds con-
| Nertcd INTO four per cents, whica would not
| otherwise have been made until after the close
! OF the year. There was a decrease of 9455-
! 4ll.2l. as follows: In the War department.
| s499S. .5SS.oS: in the Interior department sl414.-
400 l%, ard in the civil and miscellaneous S2O14-
| Sc. .03-making a net decrease IN the eNprndi-
| lures Of S1.G95. .6S2. l3.
| For tie present fiscal year the revenue. actual
and estimated. viii be as follows. Tar the quar-
| ter ended sept. 80. 1875. actual. s5 S9g 15S q:
| for 1he remaining thTee-quarters of the wear
| estimated. SI9l, loo, ,2.6.51.
| The expenditures for the same period actual
! and estimated. win he:-FOr the quarter ended
sept -. 1SiS. actual. s73S+4.5I3 = =: Tor the re-
! naming tlree-quarteTs OF the year. estimated,
! SlcG s53.4z6,3 Total receipts. actual and estt-
| mated, SzCI,5n0 oel; total expenditures. actual
! ahd estimated. S24e. 100000. Leaving a balance
/ OF S2i.+'n0o0 applicable 10 The sinking fund
which Is estimated for the year n So 81, ,6o,SI
| The revenues of the Tiscal year ending June
| % le-e. estimated upon existing Jaws win be-
! >2t4 o.EtO.
/ Tie estimate OF expenditures Tor the same
! Fer.od. received from the several executive de
| pallIGentS Ioots up s2,5.l3,.25J"i; or an esti-
| mated GcLcit OF slo63I. .95e ~.
/ Excluding he sinking fund, the g. mated eX-
| lei ilGIes VIII be s25G 5S4,9l2Gs, showing sur
! plus of s2>165,Gs132
REDUCING EXPE'sE>.
| Earnestly deSirouS OF cooperating with Con-
| gltsS ia the reduction OF expenditures 10 the
! lowest sum consistent with the proper cXecyl-
| lion of the law, the secretary has reduced the
! expenses OF the customs SerN ice durn. the last
| fiscal year. compared with the previous year.
| in the sum OF s11S492 -, and herein recon-
| meHds changes OF the law which viii enable
| INN 10 make further reductions therein. II is
| believed that, by revision. especially OF the
| postal laws. and by limitation Of The amount
| Uf appropriations for public works In progress
| by the postponement Of new works not indis-
| rensahle Tor the public service, and hy iud!cious
| scrutiny OF disbursements, that the eNpendi-
|
| aggregate exceed the appropriations for the
| present fiscal year.
Tie estimate of revenue. based noon existing
law. Is St,i56. l2 50 more than the actual reve-
| h'ie OF the past year. This estimate can Only
| lie realized by strict and impartial Enforcement
| o1 tie revenue laws. Tie enforcement OF the
| tax On spirits and tobacco has In some places
| been resisted 10y formidable combinations too
| powerful for the department with the forces az
| its command, 10 overcome. The Gust ons duties
| III many eases. have been eyaded by smuggling,
| maud, un,ierNaluatiOn. and false claims for
| draw backs and damage allowance.
II Is manifest. from these estimates. that how
eNerGesirabie II may be TO reduce existing taxes,
II ought not now 10 be done except bl supplying
| the reductions from other sources q revenue.
! RESUMPTION or sPECIE rtYiFNTS.
| Tie Important duy imposed on this depart
! Hent by TIE resumption act, approved January
| II. is,'. has been steadily pursued during the
| past wear Three OF its provisions laVe been
substantially carried into execution by the
| gradual Substitution OF fractional coin for frac-
| toEal currency. by the free c5Lna"e OF gold.
/ ara 10y lree banking. There remains only the
| completion oi preparations for ferumption IN
! coin Oh the 81 day OF January 80 and its
maintenance thereafter upon Tie basis OF eN-
/ lSliDg law.
la december. 1s77. it was deemed Hc cessaryaS
! Preparation for resumption 10 accumulate fh
| Tie Treasury coin reserve OF AT least forty per
| celt OF The amount OF United States notes out
| Stsil dlrg At that time il was anticipated that
! under the provisions OF the Resumption act tht.
! volume OF |. = notes would be reduced TO
| SOJton.oJO by The Isl day OF January. 1919 or
| SCOn thereafter and that a reserve IN coin of
| Sl2nG0o,nG would then be sufficient Congress
! however. in view OF the strong popular feeling
! against a contraction OF the currency, by the
| act approved May 81, 1S1s, forbade the retire
/ lnent OF any United States notes after that date
! leaving the amount in circulation S3i6, ,6sI OI6
| pon The principle OF safety upon which the
! department was acting. that forty per cent OF
| coin was the smallest reserve upon which re-
| sumption could prUdently be commenced il
became Necessary 10 Increase the coin reserve
| TO S13e. .G0U.CC0.
At the close Of the year ls77 this coin reserve,
m of anfFa 1falf
sos Ul6,c5o?6, OF which $4,000 600 We're obtained
by the sale OF four and a half per cent and
St5,oo,o0o by the sale OF four per cent. bonds,
the residue being surplus revenue. subsequent
ly, on the nth day of April. 1e1S, the Secretary
entered into a contract with certain bankers I'm
New York and London for the sale of $4,000 O03
four and half per cent. bonds for RESUMPTION
purposes. The bonds were sold az a premium
OF one and half per cent. and accrued Interest
less commission OF one half OF one per cent
The contract has been fulfilled and the net pro-
CeedS, $50.500.0o0, have been paid into the
Treasury in gold coin. The s5.j90.0O0 coin
paid on the Halifax award have been re-
placed by the sale OF that amount OF
four per cent. bonds sold for resumption pur-
poses, making the aggregate amount OF bonds
SOLO Tor these purposes Sa5 5u1. .0g0. OF which
s65.c06.oio were four and half per cent bonds
and So,5G0000 four per cent. bonds. To this
has been added the surplus revenue from time
10 time. The amount OF coin held In the Treas
ury On the Esd day OF November last, in excess
Of coin sufficient to pay all accrued coin liabiIi-
ties, was Sl4l, SIS, 100, and constitutes the coin
I his sum viii be diminished somewhat on the
LIST OF January next by reason of the large
amount OF interest accrling on that day in
excess OF the coin revenue received meanwhile
An arrangement with the New York banks
has been made by which all drafts on the banks
held 10y the Treasury are 10 be paid ar the clear
ing-house, and all drafts on the Treasury held
by them are TO be paid ID the clearing house at
the Office OF the assistant treasurer, I'm United
states notes; and, after the 1St OF January,
United States notes are TO be received by them
as coin.
The accumulation of coin, instead OF increas-
ing its price, was feared by many, has stead
lily reduced its premium In the market. The
present condition OF our trade, industry, and
commerce. our ample reserves, and the general
confidence inspired In our financial condition,
seem TO justify the opinion that We are prepared
TO commence and maintain resumption from
and after the first day OF January, A. ID. 1879.
Tie means and manner OF doing this are left
largely TO the discretion OF the Secretary, but.
must restore coin and bullion, when withdrawn
in the process OF redemption, either by the sale
OF bonds, or the use OF the surplus revenue, or
OF the notes redeemed from time TO time
BY the exercise OF its power TO sell bonds IL IS
Anticipated that the Treasury at any time can
readily obtain coin 10 reinforce the reserve
already accumulated. United States notes must.
however be the Chief means under existing
law with which the department must restore
coin aid bullion when withdrawn I'm process OF
redemption. The notes, when redeemed musf