The Portland daily press., 1880-12-07
THE FINANCES.
THE REPORT OF THE SECRETARY OF
THE TREASURY.

In his repors Secretary Sherman gives ab-
stracts of the accounts Of heads Of offices and
bureaus transmitted to him and made public
some days ago and discusses at length
refunding, the silver question, the reduction
of taxation, resumption of specie payments,
and the national banks. Upon these topics he
discourses as follows:
REDUCTION OF TAXES
1t appears from the Treasury statements
that the Surplus revenue, actual aud estimated.
for the fiscal years 1880, 1881, and 1882, after
providing for the sinkiug-fund for each year,
is as follows:
For The year ending june 80 1850. S27 952. .OO9 65
For the year ending June 80, 1881. SO, 1913 / 552
For the year en- ling June 80. 1882. 4S,445,277,72
This naturally presents to Congts, the cues.
tion whether the surplus revenue accruins af-
ter the present year should be applied to the
further reduction of the public debt, or
whether taxes now imposed should be re-
peaed or modified to the extent of such sur
plus. The many and sudden changes that
have heretofore occurred in the amounts re-
allied from our system of taxation are suf-
hcient warning that revenue should not be
surrendered unless it satisfactorily aopears
that the surplus is permanent. and not merely
laws are not oppressive in their nature, it is
perhaps better to bear with them than to en-
danger the ability of the government to meet
tho current appropriations and the sinking
1und. A large portion of tho surplus of rev.
enue over expenditures is caused bv the reduc-
ton OF the rate of interest and the payment of
the principal of the public debt The reduc
ti0n of annual interest caused bv refundinp
since March 1, 1877, is $14, ,29O, ,453 so and the
saving OF annual interest resulting from the
payment OF $1O9, $50 oi the principal If the
public debt, since that date, is So ia 737. 80.
The interest is likely to be still further re-
duced during the next year in an amount esti-
mated at S12. 1O1 1880, by the refunding of
bonds as heteinafter proposed. To the extent
Of this annual saving, amounting 10 $685.
6.050, the public expenditures will be pena.
nently diminished. The large increase of rev.
enue Eom customs on q few articles during the
last year may be somewhat abnormal, aud the
estimates based upon it may not be realized
II is a question for Congress to determine
whether any material reduction should be
made at time when the whole surplus rev.
enue may be with great advantage applied d.
rectly TO the payment of accruing debt, and
when such surplus is an important ele.
ment in aid OF refunding. If it should be
respectfully recommended that Ill the taxes
except those on spirits, tobacco, fermented
liquor, and bank circulation be repealed.
REFUNpING.
A large portion Of the public debt becomes
amounting to $6S7 ,350, 800.
The bonds maturing Dec. 81, 1880, will be
paid from accruing revenue. The surplus rev.
enue accrulng prior to July l, 1881. estimated
at about fifty million dollals $780, 900 OOo), will
w applied under existing law to the purchase
or payment of the bonds above described, thus
leaving the sum of $637 1856, 900 to be provided
for. The third section of the act approved
July IA, 1870, for reiunding the national debt.
under which the five per cent bonds maturing
May l, 1880. are redeemable requires the Sec
retaiy OF the Treasury 10 give public notice
three mouths in advance of their payment. To
enable the Department to avail itself of the
option OF redeeming these bonds at their ma
turity, the nece ssa,y legislation for that pur-
pose should be passed prior to Feb next.
Ihe hve aud six per cent. bonds are not, by
their terms, payable at a specific date, but they
are redeemable at the pleasure of the United
States after the dates above named. They
bear much higher rate of interest THAI the
rate at which new bonds can be sold. ANY de-
lay ia providing for their redemption will cou.
pei the continued payment of high rates of int
crest; 1t make necessary the issue of a new S =
ries Of coupons to the holders of coupon bonds.
and may postpone to a less favorable period
the completion of the operations 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 $104,652,2 These could
now be sold at a low premium, but the amount
authorized Is insufficient aud the Secretary
recommends the issuing of Treasury notes
bearing low rate OF interest.
For the fiscal year ending Amonnt