Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1880-12-08

y
due on sinking fund, 87,317. 569 q
Less the payment made during
the past fiscal year in excess of
the amount required, as above
set forth. NEUTRALITY-SUSPICIOUS.. NIB, 912yIo DO
Leaving a balance still due
account of the sinking fund, of 81, 344, 594. So
Or nearly the same amount rs the balance of
estimated receipts over the estimated expend1-
lures, as shown above. Thus it is probable
that there can be applied to the purchase of
bonds for the sinking fund during the present
fiscal year an amount sufficient to cover the
whole deficiency now existing on the account of
that fund.- thus making good the whole amount
of the sinking fund as required by law.
FIsCAI. YEAR 1882.
The revenues of the fiscal year ending June
30th, 1882, estimated upon the basis of existing
laws. the Secretary thinks will be $3.50, 200, 900.
The estimates of expenditures, for the same
period received from the several Executive De-
partments, aggregate 1901, 554, 722.28 Or, an
estimated surplus of 34S, AS. 277.72.
Excluding the snking-fund, the estimated
expenditures will be $3.50, 914, S92.08, showing a
surplus of 800, 085, 1892.
The Secretary respectfully renews bis recon-
mendation of last year that, with view to pro-
mote economy i'll the public service, perman-
ent organization of an appropriation committee
for each House be established, who shall have
leave to sit during the recess of Congress, with
power to send for persons and papers, and to
examine all expenditures of the Government;
that rules be adopted by the respective Houses
limiting appropriation bills to items of appro-
priation and excluding Legislative provisions;
that all appropriations, except for the interest
on the public debt, be limited to period not
exceeding two years, and that the expenditure
of appropriations be strictly confined to the
period Of time for which they are appropriated.
REDUCTION TAXES.
It appears from the foregoing statements that
the surplus revenue, actual and estimated for
the fiscal years 1880, 1881, and 1882, after pro-
viding for the sinking-fund for each year, is as
follows:
For the year ended June 80, 1880
...... Observation-Disclosures SD, 052. OO9.65
For the year ending June 30, 1881
OU,I9o, Ilu.I3
For the year ending June 30, 1882
40.4i0, Z ~, ~
This naturally presents to congress the ques-
ton whether the surplus revenue accrulng after
the present year should be apple d to the fur
Their reduction of the public debt or whether
taxes now imposed should be repealed or modi-
fed to the extent of such surplus The many
and sudden changes that have heretofore oc-
CURED in the amounts realized from our system
of taxation are q sufficient warning that revenue
should not be surrendered unless it satisfactori-
lv appears that the surplus is permanent, and
not merely temporary. If the taxes imposed by
existing laws are not oppressive in tier nature,
it Is perhaps better to bear with them than to
endanger the ability of the government to meet
the current appropriations and the sinking fund.
large portion of the sur lus Of revenue over
expenditures is caused by the reduction of the
rate of interest and the payment of the prin-
cipal of the public debt. The reduction Of an
nual interest caused by refunding since
March 1. 1877, is S14 900, 453 so. and the saving
IF rrtp, t1,.,
of 500, 4S9,8 $50 of the principal of the public
debt, since that date, is sc. IA, 1880. The in
terest is likely to be still further reduced dur
ing the next year i'll an amount estimated at
80, 101, 1880, by the refunding of bonds as
hereinafter proposed. To the extent of this
annual saving, amounting to S32, $780, 620. SO,
the pu6lc expenditures VIII be permanently di-
minished The large increase OF revenue from
customs on few articles during the last year
may be somewhat abnormal, and the estimates
based upon it may not be realized. 1t is q
question for congress to determine whether any
material reduction should be made at a time
when the whole surplus revenue NAV be with
great advantage applied directly othe payment
or accrmn9 debt, and when such surplus is an
important element in aid Of refunling. If it
should be determined by congress to reduce
taxes, it Is respectfully recommended that all
the taxes imposed by the internal revenue law
other than those on bank circulation and on
pealed. The tax on the circulation of national
banks Is levied partly i'll the nature of moder-
ate charge for a franchise conferred by the
government, and partly to furnish means to
pay the expense of printing and issuing national
bank notes. 1t is easily collected by the Treas.
ufer OF tue United States, and is just and
proper tax, whether regarded as charge for
the franchise or as a means OF reimbursing the
government the cost of printing the notes. The
tax on state banks Is of the gravest Importance.
not for purposes Of revenue, but as check up
on the renewal of a system of local state paper
money which, as it would be issued
under varying state laws, would neces-
saI1ly differ as to conditions, terms, and secur-
lily, and could not. from its diversity, be guard
ed against counterfeiting, and would, at best,
have but limited circulation.
REFUNDING.
4 large portion of the public debt becomes
payable or redeemable On or befoceJuly /, next
as follows:
Title of loan Rate Amount
Loan of February, 1861 =. IS per cent 13414 900
OIegon-war debt. ....... 6 peg cent I'll 500
Loan July and Aug, 1851. g per cent 145 786, 200
Loan Of lS6 Q8S1's). .....6 per cent. 81, 1877 $50
Funded loan Of 1881. per cent. 469 651 1850
Outstanding Nov. l. 1880. 1861, 35e 600
The bonds maturing December ST. 1880, will
be paid from accruing revenue. The surplus
revenue accrulng prior to July l, 1881 esti-
mated at about fifty million dollars (S50,0OO,-
00O), will be applied under existing law tie the
purchase or payment of the bonds above de-
scribed thus leaving the sum of 5637, $50, 600
to be provided for. The third section of the
act approved July "A, 1870, for refunding the
national debt under which the five per cent.
bonds, maturing May 1, 1880, are redeemablo.
requires the Secretary of the Treasury to give
public notice three months in advance of their
payment. To enable the department to avail
Itself OF the option of redeeming these bonds
at their maturity, the necessary legislation for
that purpose should be passed prior to Feb1u-
ary 1, next. The five and six per cent. bonds
are not, by their terms, payable at specific
date, but they are redeemable at the pleasure
OF the United States after the dates above
named. They bear much higher rate of in
terest than the rate at which new bonds can be
sold. Any delay in providing for them redemp-
ton will compel the continued payment of high
rates of interest; it will make necessary the
issue of new series of coupons to the holders
of coupon bonds, and may postpone to a less
favorable period the completion of the opera
tons of refunding. Under existing law, there
is still available for this purpose four per cent
bonds authorized by the acts of July Il. 1870.
and January 20, 1871, to the amount of S1O4.-
652 200 These could now be sold Of o Iorra