The weekly herald. [volume] (Cleveland, Tenn.) 1876-1888, 1878-12-05

as follows:
F FSsi:lalIYSS; ciariaca ' sls..Sss Il Il
War Department. 740,SfS IA
fntsyo g PBePari%enii l.4 S9.gsg7 70
POstOlloe Department. 1855, 70l 80
Department OF Justioe.. 32l,S4o 90
Total 81, 6G6. bO5 2I
Of ll.s4l IS
Net increase. 81, 554, U63 SO
Earnestly DESTROYS OF cooperating with Congress
in the reduction OF expenditures TO the lowest sum
consistent with the proper execution OF the law,
toms service, during the last fiscal year. compared
with the previous year, in the sum Of S77s,492 25.
aud herein recommends changes Of the law which
will enable him TO make further reductions there
in. The great body Of expenditures is fixed by
laws which leave no discretion to executive officers.
The reduction OF appropriations does not reduce
expenditures when the law requires the service TO
be performed, or fixes the salary and number Of
employees. IL must be accompanied by q careful
revision OF the laws, reducing the objects OF OK
penditure or the number or compensation OF en-
ployes. 1t is believed that, by such a revision,
of the amount Of appropriations for public works
In progress, by the postponelnent OF new works not
Indispensable for the public service, and by Judi
cious scrutiny Of disbursements, that the expendi-
lures for the next fiscal year need not, in the ag-
gregate, exceed the appropriations for the present
fiscal year.
The estimate Of revenue, based upon existing
law, Ia : 6,736.l21 80 more than the actual revenue
Of the past year. This estimate can only he real
lied by strict and impartial enforcement Of the
revenue laws. This is not only q legal duty Of rev.
enue officers, but is the right of every honest tax
payer. The enforcement of the tax on spirits and
tobacco has, in some places, been resisted by
formidable combinations too powerful for the
department, with the forces at its com
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 hereinaf-
1t is manifest, from these estimates, that. how
ever desirable IL may be to reduce existing taxes,
! ought not now to be done except by supplying
the reductions from other sources OF revenue. Sta
bility and certainty in the rate.and subject of taxa
ton are of great Importance, and, therefore, the
Secretary recommends that no change be made in
them during the present session, except to convert
certain dd r~dlOTenl duties, hereinafter stated, into
specific duties.
RESUMPTION OF sPEcIE PAYMENTS.
The important duty imposed on this Department
by the Resumption Act, approved January Ia,
1875, has been steadily pursued during the past
year. The plain purpose OF tho act is to secure TO
all interests and all classes the benefits Of O sound
currency, redeemable in coin, with the least posi-
BILE disturbance OF existing rights and contracts.
Three OF its provisions have been substantially car
ried into execution by the gradual substitution OF
fractional com for fractional currency, by the free
coinage of gold, and by free banking. There re-
mains only the completion of preparations for re-
sumption in coin on the LIST day OF January, 1879,
and its maintenance thereafter on the basis OF ex-
listing law.
nv nv heNO VI Wy uhnhhl ItHOlb u AOuBICSb III
December. 1877, it was deemed necessary as O
preparation for resumption TO accumulate in the.
Treasury a coin reserve Of at least forty per cent.
At that time IL was anticipated that under the pro-
visions of the RESUMPTION act the volume of United
States notes would be reduced to $500, 900, 900
by the LIST day of January, 1879, or soon there
after. and that a reserve In coin Of $l20,000,000
would then be sufficient. Congress, however, in
view OF the strong popular feeling against a con-
traction of the currency, by the act approved May
31,1s7S,f forbade the retirement of any United States
notes after that date, leaving the amount in circu-
lation $346,6s1 ,016. Upon the principle Of safety
upon which the Department was acting, that forty
per cent OF coin was the smallest reserve upon
which resumption could prudently be commenced,
1t became necessary to increase the coin reserve to
$139, 200, 900.
AT the close Of the year 1877 this coin reserve,
in excess of coin liabilities, amounted to 1858, 016,-
$50 90, of which $15,000,000 were obtained by
the sale of four and a half per cent, and $25, 000,-
600 by the sale of four per cent. bonds, the residue
being surplus revenue. Subsequently, on the 18th
day of April, 1873, the Secretary entered into n
contract with certain bankers in New York
and London-the parties to the previor CON
tract Of June 8, 1877, already coei ufmicat-
ed to Congress-for the sale Of SSStstSh0,000
four and o half per cent. bonds for resufnption
purposes. Tho bonds were sold at o premium OF
one AUD a half per cent. and accrued interest, less
q corGN issiOn of one-halr of one per cent. The CON
tract Has been fulfilled. and the net proceeds, $780,
100000 have been paid into the Treasury in gold
coin. The $5,500,000 coin paid on the Halifax
award have been replaced by the sale of that
amount Of four per cent, bonds sold for resump-
ton purposes, making the aggregate amount Of
bonds sold for these purposes $95, 100000 OF
which S65, 600 were four and a half per cent.
bonds, S3O,5000, 900 four per cent. bonds. To this
has been added the surplus revenue from time
to time line The amount Of coin ags held
of November last, in excess Of coin sufficient to
pay all accrued coin liabilities, was $141, 1888, 100,
sumption purposes. This sum will be diminished
somewhat on the LIST of January next by reason Of
the large amount of interest acerulng on that day
In excess Of the coin revenue received mean
while.
In anticipation of resumption, and in view of the
fact that the redemption OF United States notes ia
mandatory only at the office of the Assistant Treas
urer in the city OF New York, it was deemed i'm
portant to secure the co-operation OF the associated
on those banks and in the payment of
Treasury drafts held by them. A satisfactory ar
ran cement has been made by which all drafts on
the banks held by the Treasury are to be paid at
the clearinghouse, and. all drafts on the Treasury
held by them are to be paid to tho clearinghouse
at the office OF the Assistant Treasurer, in United
States notes; and, after the LIST Of January, United
States notes are to be received by them rs coin.
This will greatly lessen the risk and labor Of col
~lections, both to the Treasury and the banks.
Every step in these preparations for resumption
has been accompanied with increased business and
confidence. The accumulation Of coin, instead OF
Increasing its price, as was feared by many, has
steady reduced its premium In tho market. The
depressing "a and r1inous losses That followed Love the
the Resumption Act passed; but every measure
taken in the execution or enforcement OF this act
has rendered TO tighten these losses, and
now IL is merely nominal. The pres
ent condition Of our trade, industry and mmerce,
hereafter more fully stated, 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 aud after the first day OF January, AID. 1879.
The means and manner Of doing this arc left
largely to the discretion OF the Secretary, but,
from the nature of the duty imposed, he must re-
store coin and bullion. when Withdrawn In the pro
cess Of redemption, either by the sale OF bonds, or
the use of the surplus revenue, or OF the notes re.
deemed from timeto time.
The power TO sell any OF tho bonds described In
the Reminding Act continues after as well as before
resumption. Though 1t may not be often used, IL
is essential TO enable this Department TO meet
emergencies. 3D. Its exercise 1t 10 anticipated that
the Treasury at any time can readily obtain. coin
to reinforce the reserve already accumulated.
United States notes must, however, be the chief
means under existing law with which the Depart
ment must restore coin and bullion
when Withdrawn in process OF 70
demption. The notes, when redeemed, must
necessarily accumulate In the Treasury until their
superior use and convenience for circulation ena-
blcs tho Department TO exchange them at par for
The act Of May 81, 1873, already referred to,
provides that when United States notes are re-
deemed or received In the Treasury under any law,
from any source whatever, and shall belong TO tho
United States, they shall not be retired, Cancelled,
OF destroyed, but shall be reissued and paid out
again aud kept In circulation.
The power TO reissue United States notes was
, conferred by Section 1919, Revised Statutes, and