Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-11-29
SECRETARY SHERMAN,S REPORT.

s273, ,1s416; total ordinary expenditures,
$266, ,957, $685. leaving surplus revenue of &c.
79.300.93. which was applied as follows: To the
redemption Of United States notes, $31 ,613.17;
to the redemption OF fractional currency, sos,
1929; to the redemption Of per cent. bonds
for the sinking fund, SIS, ,500 to increase of cash
balance in the Treasury. s6.1M.O2417. The
Secretary estimates that for the present fiscal
year the revenue actual and estimated will ag-
gregate for the quarter ended September Both,
1879, $I9.S43, ,5l9.46, and for the remaining three
quarters Of the year $2Os, 1856 420.54 The eXpen-
dttures for the same period will be $264, 900, ,O00
leaving balance OF 81, 600 900. For the fiscal
year OF 1881 the Secretary estimates the ordinary
receipts at S2ss. 600 00O and the expenditures for
the same period, including the sinking fund,
s27s, ,o97, ,364.35, or an estimated surplus of &c.,
9O2 639. 81.
The Secretary says: The estimates of revenue
for the next fiscal year are based upon the as
sumption that the increased receipts during the
past few months are abnormal, and mainly due
to the filling up of wants created by recent de-
preston rather than by the actual increase Of
trade. These wants being supplied the reve
beyond the amount estimated. The estimated
expenditures for the same period are based upon
the requirements of existing law and the neceS-
sary appropriations for public works in course
of construction. The estimated surplus OF
SO, ,902 635.61 will probably be exhausted by addi-
tional appropriations.
beyond this limit, or repeal or reduce existing
taxes, other sources of revenue must be pro-
vded. Should this course be determined upOn
which, however, the Secretary does not recon-
mend, he would suggest, as means of meeting
the deficiency, the restoration of a moderate
duty on tea and coffee, and the levying of an
internal tax upon manufactures Of opium, as
hereinafter more fully stated.
SINKING FUND
The Secretary calls the attention OF Congress,
In this connection, to the acts of February 25th,
1862, and July 14th, 1870, requiring the purchase
or payment of one per centum of the entire
debt of the United States within each fiscal year
after the first day of July, 1862, to be set apart
as sinking fund.- and the interest in like man
ner to be applied to the purchase or payment Of
the public debt, as the Secretary of the Treasury
may, from time to time, direct. These acts are
regarded as imposing upon the Secretary the
duty of providing for the sinking fund out Of
the surplus revenues of the government. 1t has
been impossible to comply with these require
ments during the past few years owing to the
depression of business throughout the country;
but, as the prospects for increased revenues en-
large with the renewed activity in all branches
OF Industry, it seems proper at this time TO urge
the Importance OF meeting the obligations crea-
ted by these acts 1t is estimated that $39, ,S2s,-
225.72 will be required for this purpose during
tne next year Aappreeiatng ap the necessity for
will heartily cooperate with Congress in the
most rigid economy In the public expenditures
under its charge, and to that end the Secretary
invites careful consideration of the estimates Of
expenditures submitted by the several execu-
tive departments. Any appropriations beyond
those actually demanded by the necessities of
the government will only impair the ability OF
the secretary to carry these laws into effect
With view to promote economy, the Secre-
tary ventures to suggest, for the consideration
zation of an appropriation committee for each
House, who shall have leave to sit during the
recess, With power to send for persons and
papers, and to examine all expenditures Of the
government; that rules be adopted by the re-
spective Houses limiting appropriation bills to
items of appropriation and excluding legislative
provisions; that all appropriations, except for
period not exceeding two years, and that their
expenditure be strictly confined to the period
Of time for which they are appropriated; and
tions, made more than four years ago, excep5
that for the public debt, be repealed.
RESUMPTION OF SPECIE PAYMENTS.
AT the date OF my last annual report, Decem-
approved January H. 1875. had been substan-
TALLY completed. On the first day of January,
1879, the day fixed for the resumption of specie
payments, the reserve OF coin, over and above
all matured liabilities, was sl33, sos, ,so4.50.
Previous TO that time, in view Of resumption,
United States notes and coin were freely re-
ceived and paid in private business as equiva-
Tents. Actual resumption commenced at the
time fixed by law, without any material de-
mand for coin and without disturbance to public
or private business. No distinction has been
made since that time between coin and United
States notes in the collection Of duties or in the
payment of the principal or interest OF the pub
lie debt. The great body OF coin Indebtedness
has been paid In United States notes at the
request OF creditors. The total amount of United
States notes presented for retention, from Jan
uary to November l, 1879, was $11 ,256,6IS But
little coin has been demanded on the coin liabili-
ties OF the government during the same period
though the amount accruing exceeded six hun
dred million dollars. Meantime coin was freely
paid into the Treasury and gold bullion was de-
posted in the assay Office and paid for in United
states notes. The aggregate gold and silver coin
that period, from $16I 55S, ,134 10 1926
and the net balance available for resumption in
creased from s1S3 sos s04 80 to s152 1877, ,l554s.
In accordance with the position taken in the
last annual report, United States notes have
been received, since January l. last in payment
OF duties on imports.
To meet the local demand for con in places
other than New York city, persons applying
have been paid silver coin for United states
notes. the coin being delivered to them on estab-
some time gold and silver coin has been MIR freely ely
paid out at the several sub-treasureS upon cur
rent Obligations OF the government. There has
been, however, but little demand for coin, and
United states notes and the circulating notes of
national banks have been received and paid out
at par with coin in all business transactions
public or private, in all parts OF the country.
given AN impetus to all kinds OF business. Many
industries, greatly depressed since the panic Of
1873, have revived, while increased activity has
and commerce. Every preparation for res,lmp-
tton was accompanied with increased business
and confidence. and It's cOnsummation has been
followed by revival OF productive industry un-
exampled in our previous history.
1t is made the duty of this department to
maintain resumption, and for this purpose, in
addition to the use Of surplus revenue and the
Iund for resumption purposes, the Secretary is
authoflzed TO issue, sell and dispose Of at not
less IMAM par in coin, either four, four-and-a-
nall or nVe per cent. bonds Of the description
SCI out IN the refunding act, approved July IA,
1870. This act is based upon the idea that ali
the necessary expenditures of the government
appropriated for by Congress will be met by the
current revenues leaving the surplus revenues
and the reserved 1und available for RESUMPTION,
Ii is also provided by that act that the amount
or United States notes to be redeemable on de-
mand In coin shall be gradually reduced to the
sum OF $500, 100000. The act approved May 81,
1875, increases the maximum Of United States
notes, upon which resumption is to be main-
tanned. to the sum Of $S46, ,6S1 ,O16 the amount
outstanding at the date OF the passage Of the
act. 1t also provides as follows: land when
any or said notes may be redeemed Or be re-
celVed into the Treasury under any law from
any source whatever and shall belong to the
United States, they shall not be retired. can
celed or destroyed, but they shall be reissued
...... ,,.... v... and ..opJ IN circulation"
This act must be Construed in connection with
the provision of the Constitution, that "no
money shall be drawn from the Treasury but in
consequence of appropriations made by law"
The reserve fund created by the resumption act
could not, without further legislation, be applied