The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1879-12-05

Inere was . decrease OF o5 In the navy
department, mailing a net increase In the expendi-
lures Of $24,sss,66s Is.
TIE FISCAL YEAR 1880.
For the present fiscal year the revenue
actual and estimated, the secretary
thinks, will be $2Ss, 000, 900, of which
$l52. DOC, 900 will be derived from Gus
toms, 100000 from internal reve-
nue., and Sc, 750, 900 from the tax on cir
culation and deposits of national banks.
The expenditures for the same period,
actual and estimated, the secretary
places at s264, 100000, which would
leave balance of 81, 600, 900 ut the end
of June next.
After APPLYING the balance Of the special depos-
1t Of UuiIed States notes held In the treasury for
the redemption OF fractional CURE ney, amounting
to S. 375, 1874, to the payment of arrears OF PEN
sions as directed In section of the act approved
June a. ls19 the increased revenue derived during
the months OF July, August and September of the
present year was fully absorbed by current ex.
penses and the payment Of 80 ARREARS of
pensions accruiDg under the act approved January
Is, 1879. hotwithstanding these unusual demands
| the department has been able 10 purchase and sp
ply TO the sink ng fund out Of the surlus revenues
for the month Of October 81 050,000 per centum
bonds Of 1881, and 1910 $50 per centum bonds,
act OF March g. 1854 the latter Of which is tue ex
cess Of REDEEM ton Of these bonds issues of
per cents under the refunding acts. and, unless
within this year be made by congress, the surplus
revenues. In addition 10 paying of the balance of
arrears Of pensions, viii probably enable the de-
partment to Apply 10 the sinking fund account dur
ing the yesr the sum Of s2i,ogO,OOO.
THE FISCAL YEAR 1880-81.
The revenues for the fiscal year ending
June 30th, 1881, the secretary estimates
at 1888 O00. 900, and the expenditures at
$278, 097 1854. which would leave a sur
plus of s9,9O2,6S5.
REsUhPTIoN OF SPECIE PAYMENEs.
At the date CT my last annual report, December
2. 1873. the preparation for the resumption of
January Il, 1875, had been substantially compile ed
On tn let day Of January, l8i9,-the Gay FIX for
the resumption Of specie pawn nts-the reserve OF
coin aud above matured liabilities $751;
b0S,,Olb0. Previous t. that time, m view of re-
sumption, United States notes and coin were
freely received and paid in private business "a
equivalents. Actual resumption commenced at the
time fx-d by law, without any material demand for
com and without disturbance to pubic or private
| business. NO distinction has been made since
that time between coin and United States notes ia
the col ection Of duties or in the payment Of the
primo pal interest of the pnblic debt The great
body Of coin ine eedn' 81 has been paid IN United
amount Of United States notes pressnted Tor re-
demptioU for January ] to Nov mber I, i67g, was
sll, 25G 67s b It little coin has been demanded on
the coin liabilities Ol ekONtEumtut curing the
same period, though the amount sccruing exc, eded
500 5000. Meanwhile coin was freely paid into
The treasury, ard sold bullion was deposited
IN the assay Office, ard paid fer In United States
notes The aggregate gold and sil yer coin and bull
lou in the treasury mere sed during that period
from sl67 SOS 1874 ~ TO S225 1885, aud the nee
sIs3, sos, sO4.5O TO sl5l7S7, lb54s In accordance
Ih the po-iion taken In the last annual report,
Uni ea ates notes have been received, sincs jan
uary last. 10 payment Of duties on mporte. To
mi M locaN N I'm Faa MI nor
than New York city, persons applying have been
paid silver coin for United States notes. the coin
beng delivered to them on established express
gold aad silver coin has been freely paid
out ut the sub treasurer upon current obll-
cations OF the government. There has been
h.wever, but little d. mand for coin, and United
States oIes and the CIRCULATING notes Of national
banks have been received aud paid out at par with
coin in all business transactions, publ and pri-
vate, in all PARTS Of the country The specie
o andsrd Il Us happily secured. has gwen impe.
tus TO 81 kinds Of business. Msny industries,
greatly depressed since the panic OF 1878 have re-
viyed, while Incl easrd sctivits has teen shown in
all branches of production. trade, and comm rec.
Every preparation for resumption was accom- an
fed wish increased business and confidence,
and it, coasunmation has been followed
by o revival Of protective industry unexan-
pied in our previous history. It is made
the duy Of this department to maintain
addition 10 the use Of surplus revenue and the
fund for resumption purposes, the secretary is
thorizsd TO issue, sell and dispose Of at not less
than par in coin. either T. ~, or per cent bonds
of the descrption set out in the refuuoing set
approved July IA, 1870. This act is based upon the
ioea that all the nee sssry expenditures OF the gov
erDment appropriated for by conertss will be mt
by the current revenues, leaving the surplus
nues and the reserve fund available for resumption
II IL also provided by that act that the amount Of
United states notes 10 be defmable on demand
In coin shall be gradually reduced to the sum OF
t30Q.0UO,G00. The act approved Nay 81, 1878, in
creases tho maximum OF United States notes upon
~
OF S346 o6l ,Ol6 the amount outstanding ut the DAT
the passage Of the act. 1t also provides rs fol-
lows:
"And when any Of said notes may be redeemed,
or be received into the TIE asury under any law
from sry source whatev r and shall belong to the
United states. they shall not be retired, cancelled,
or destroyed but they shall be re-issued and paid
out again and kept in circulation"
This act must be construed ia connection with
the provision Of the constitution that mo money
shall be drawn from the treasury but In conse-
quence Of appropriations made BY law" The re-
terye fund created by the resumption act could
not, without further legislation, be applied to the
payment Of current appropriations; nor Ia II to be
presumed that congress Will omit TO provide smple
revenues to meet such appropriations. Therefore,
under the existing law the notes received into the
treasury IN exchange for coin viii always be avail
able for the purchase Of or exchange for coin or
bullion. Any United States notes In the treasury
may Dc e. &C.. Tor coin under the authority Of
be used at par for that purpose they must neces.
ssry Iemsin In the treasury. To avoid all pnoer.
taluty III retpeCtlul recOfnmenoe0 tnAf, by law
the resuupion fund be specifically snned and set
spsrt for the redemption Of United States notes
and that the notes redeem shall only be Is ned
IN exchange for, or purcOase Of. coin or bullion. |
The great covsn ence and easy transportation of /
notes has thus for enab ed the treasury TO en-. /
change them TOR coin or bullion nj all the centres OF
production OF gold and silver In this country and
also TO pay for large suns Of foreign coin at the as
say Office IN New York without any material draf
ON the resumption fund, and IL In believed that this
volu' tary exchange will, In ordinary times fur
nish the treasury with all the coin necessary. II
would on y be IN an emergency not easy TO forsee
and not likely 10 arise, that thr power 10 sell bon 8
for resumption purposes would be exercised: but
Il should b. preserved 10 meet any extraordinary
demand for the redemption Of notes which might
possibly occur. The secretary II, therefore, of the
opinion that the provisions VI the existing law are
ample 10 enable the department to maintain re-
sumption, even upon the present volume of United |
States notes. In view, however, Of the large inflow
Of silver into the country and the big price of pub
lie sscurties, Il would seem favorable time 70 In
vest Q portion OF the sinking IA In United States
notes. 10 be retired and cancelled. and In this way
g,aduslly TO reduce the maximum OF such no e. to
b3oO, O0O,Uo the amount fixed by the resumption
lot.
The secretary respectfully calls tho attention Of
congress 10 the question whether United tates
notes ougst stu 70 be hgal tender In the pay.
nent Of debts. The power Of congress 10 make
hem such assumed by congress during The
var, and was upheld by the supreme Court. The
,over 10 reissue them IN time n pesce aftsr thsy
re once redsered 10 Stll cJuteSf6d n that S5uk