Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1880-12-16
The National Finances.

The very able report of the Secretary
of the Treasury, will be read with atten-
tion by men of business throughout the
country. Its chief points of interest
center upon the refunding acts and the
proposed issue of treasury notes in lieu
of bonds of low rate of interest; the sus-
pension of silver coinage and the posi-
BILE recoinage of the mass of silver now
living idle in the vaults; and the ques-
ton as to whether, in view of the anti
cipated surplus in the treasury, the pres
ent rates of taxation should be main
tained. Upon each of these points the
Secretarys report is clear, forcible and
sagacious. The success of his admins
tration entities his views to more than
ordinary respect, and such respect they
will doubtless receive, even from those
who have heretofore been politically op-
posed to him.
As to the refunding of the $685., 100000
bonds bearing six or five per cent. inter-
est that will be payable on July 1st, OF
1881, the Secretary calls attention to the
fact that the law to provide for them
must be passed before February 1st, in
Older to enable the government to save
the further payment of the high rate of
interest. Three courses seem open. To
sell four per cents at the present high
premium; to sell three-and-a-balf per
cents at par; or to issue Treasury notes
bearing still lower rate of interest,
running from one to ten years, the pro-
ceeds to be applied to the payment of
the five and six per cent bonds. These
Treasury notes would be in effect bonds
bearing low rate of interest-lower
than any part of our bonded debt and
clear saving to the people, if they can
be fioated. The Secretary thinks that in
the present condition of the market they
would be foated, and this opinion is
doubtless based on extensive and accu-
rate information.
AS to whether the present rates of
UC III hASh
of probable surplus in the treasury in
1881 and 1882, the Secretary expresses
himself with caution, inclining, howev-
er, to the opinion that no material
change in the present rates is advisable.
The deficiency in the sinking fund, due
to the decreased revenues following the
panic of 1878, will be made good during
the current year. After this there will,
according to present estimates, be an
annual surplus of about S50,0OO,OOO.
This might seem to justify decrease
of taxation; but such is the present
prosperity of the country that the ex-
isting taxes are hardly felt, and it thus
seems the part of ordinary wisdom to
90 on decreasing the debt while we are
able, so as to make retrenchment pos
sible so soon as the tide of our present
prosperity begins to ebb. Bad crops for
year or two would make reduction
of taxation desirable, and preparation
for that sort of "rainy day would be
prudent.
The Secretary shows conclusively that
the present silver dollar cannot be made
to circulate to larger extent than 35
per cent of the mass already coined,
while its continued coinage involves an
expenditure of two million of dollars
per month. Though the treasury has
exhausted its resources to put it into
circulation, it cannot keep it out. 1t re-
turns to the vaults, and the indications
are that it will, if the present law be
continued, drive gold out of the country,
and make debased silver dollar our
standard.-Balt. American.