Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-12-07
THE TREASURY.

Extracts from the Report of Secretary
-ForeshadOwings of the Finan-
ctals Policy of the Garfield Administra-
tion-Hostili.y to the Standard Silver Dol
lar and the Legal Tender Quality of
Observation-Disclosures Bonds and
Notes Recommended for Redemption
Purposes.
The annual report of the secretary of the
treasury, in addition to the tabular and other
statements copied into the Presidents mes.
sage, includes the following comparison and
estimates for the current fiscal year:
Compared with the previous fiscal year. the
receipts for 1850 have increased $62, 629 43S %
The expenditures show an increase over the
previous year of 1926, 100, $50. 4S.
For the present fiscal year the revenue &C
tual and estimated, ia as follows:
For the quarter ended September 80, 1880,
actual, $97, 1889, 1892. For the remaining
ITO. 760. 0S. The expenditures for the same
period, actual and estimated, are ::
For the quarter ended September 80, $780,
actual, $77.Ql8,53l. 78. For the remaining
three quarters OF the year, estimated, 1882, 9Sl,
468.22.
Total receipts, actual and es-
umateu.. ...-........... 1851, U0O, COO 90
Total expenditures, actual and
estimated .................. 26O,OOO,OO 90
Surplus. ......:....... s9O,OOO,OOO 90
Estimated amount due the
sinking fund. $780,, 1884 4s
Leaving balance Of. $50. 1873, lis So
Under the act of February 25, 1862, az amend
ed July IA, 1870, the sinking fund at date of
| this report is short $51, 344, 594 IS, or nearly
! the same amount as the balance of estimated
| receipts over the estimated expenditures, 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.
| Upon the basis of existing laws the secretary
estimates the revenues of the fscal year end.
| ing June 80, 1882, at $3500OO, 600, while the
estimates from the several departments of
amounts required for the year, including
| the sinking fund, foot up 1901, 554, 1872. %,
leaving an estimated surplus of $46, AL, 277. r.
Excluding the sinking fund, the estimated ex-
surplus of 800, 085, III. 80.
The large surplus revenues (actual and esti-
mated) for the fiscal years 1880, 81 and 49, the
secretary submits as naturally presenting to
1.-THE question whether the surplus revenue &C.
cruing after the present year should be applied
or whether taxes now imposed should be re-
pealed or modified to the extent of such sur
| plus. The many and sudden changes
that have heretofore occurred in the
amounts realized from our system of taxation
are sufficient warning that revenue should
not be surrendered unless it satisfactorily ap.
| pears that the surplus is permanent, and not
merely temporary. If the taxes imposed by
existing laws are not oppressive in their ma
| ture, 1t ia perhaps better to bear with them
than to endanger the ability of the govern
ment to meet the current appropriations and
the SINKING fuud.' 1t it should be
| determined by Congress to reduce taxes. IL ia
respectfully recommended that all the taxes
| imposed by the internal revenue law other
than those on bank circulation and on spirits
| tobacco, and fermented liquors be repealed.
large portion of the outstanding public
| 6ebt ls6S7, $50, 5000 becomes payable or re-
deemable on or before July 1, next. THE
estimatedH at about fifty million dollars
100000. OOO0 will be applied under existing
law to the purchase or payment of the bonds
above described, thus leaving the sum of
$637, 35O. 600 to be provided for. =
Under existing law, there is still available
lied by the acts of July II, 1870, and January
70 1871, - the amount of $1O4, 652, POO. These
could now be sold at large premium, and in
the absence Of legislation, it would be the
duty of the secretary vixen any bonds became
redeemable, to sell the four per
cents and apply the proceeds to the
REDEEM psion of such bonds but the amount of
four per cents authorized is inadequate to the
purpose stated. Hitherto the policy
has been to sell bonds bearing as low rate of
| interest as possible, running a number of
years. but in view of the requirements of the
sinking fund, it ia believed that large por-
ton of the public debt to be redeemed can be
nT0Vl66n
large accumulation of money now
seeking Investment affords q favorable
opportunity for selling such notes bearing
low rate of interest. 1t Is believed that they
will form popular security, always available
to the holder, and readily convertible into
money when needed for other investment or
business. They should be in such form and
denominations as to furnish convenient in
vestment for the small savings of the oDle,
and I'LL the place designed by the ten-dollar
refunding certificates authorized by the act of
February &c, 1872
The secretary, therefore, recommends that
provision be made for the issue of an amount
not exceeding $400, 900, coo of treasury notes in
denominations not less than ten dollars, bear
ing interest not exceeding four per cent. per
annum, and running from one to ten years.
to be sold at not less than par, the amount ma
turing during any year not to exceed the sink
lng-fund for that year, and the proceeds to be
applied to the payment of five and six per
cent. bonds, maturing in 1851. 1t is believed
that, with the present favorable state of the
money market, a sufficient amount of such
treasury notes bearing an annual interest of
three per cent, can be sold to meet consider
able portion of the maturing bonds; but it is
better to confer upon the department discre-
tionary power to stipulate for higher maxi
mum rate, to avoid the possibility of failure.
Such discretion is not likely to be abu sed,
while power too carefully restricted may de-
feat the beneficial object of the law.
THREE-S1XTY-FIvE BONDS.
at is also recommended that authority be
given to sell at par an amount not exceeding
$500, 060, 900 of bonds of the character and de-
scription of the four per cent. bonds of the
United States now outstanding, but bearing a
rate of interest not exceeding three and sixty
five one-hundredths per cent. per annum, and
redeemable at the pleasure of the United States
after fifteen years, the proceeds to be applied to
the payment of bonds redeemable on or be-
fore July /, 1881. Though the amount of the
two classes of securities recommended exceeds
the amount of bonds to be redeemed, no more
can be sold than the bonds to be redeemed,
while the alternative authorized will permit
limit discretion to sell the securities most ia.
vorabie the government"
GREENBACgs.
United States notes are now, in form, Sc
curity and convenience, the best circulating
medium known. The loss of in
terest in maintaining the resumption fund and
the cost of printing and engraving the present
amount of United States notes is less than
one half the interest on an equal sum of four
per cent. bonds. The public thus saves over
100000 of annual interest and secures q