Morning journal and courier., 1880-12-08


 Secretary Shermans annual report is a
 most encouraging document. The net in
 crease of receipts for the year was nearly
 sixty millions, and the increase of expendi-
 lures less than seven hundred thousand dol
 lars. The surplus revenue was about sixty
 six millions, and the excess above the require
 ments of the sinking fund was about twenty
 eight millions The estimated excess of roy
 enue for the current fiscal year above the or
 dinary expenses, including the sinking fund,
 is about fifty millions. This very satisfac-
 tory showing suggests 9 reduction of taxes.
 On this point the Secretary speaks with some
 reserve, thinking it would be better to con-
 tinue the present taxes so far as they are not
 oppressive than to endanger the ability of
 the government to meet from it's current
 revenues the annual expenses and the sink
 ing fund. If Congress should decide to re-
 duce taxes he recommends that all internal
 revenue taxes, except those on bank circula- ton, spirits, tobacco and fermented liquors,
 be repealed. This would include the repealof the tax on bank capital and deposits, and on checks, matches, ''patent'' medicines, etc.
 What the Secretary has to say concerning refunding is very interesting and important. A large portion of the public debt, $637, ,350,- 600 becomes due on or before July l. 1881. The surplus revenue, estimated at about fifty millions, will be applied to the payment of the bonds, so far as it will go. For the rest, the Secretary recommends that, instead of selling bonds bearing low rate of inter est and running number of years, the larger part of this debt should be provided for by treasury notes running from one to ten years, and issued in such sums that they can be paid from the sinking fund receipts as they mature. The present time affords a favorable opportunity for selling such notes bearing low rate of interest. It is be- Ieved they would form popular security, ,al | ways available to the holder, and readily | into money when needed for other | investment. They should be in such form | and denominations to furnish convenient l investment for the small savings of the peo- pie. The Secretary recommends that author ity be given for an issue of not more than | S4OO, 1000, 900 of these securities in denomina- lions not less than ten dollars, bearing inter est not exceeding four per cent, and running from one to ten years, to be sold at not less than par, the amount maturing in any one year not to exceed the amount of the sinking fund | for that year. He believes that enough of l such notes bearing interest at three per cent could be sold to meet considerable portion | of the accruing bonds. He also recommends that authority be given to sell at par not more than four hundred millions of bonds at arate of interest not greater than three and sixty five one e-hundredths per cent, and redeema- ble at the pleasure of the United States after | fifteen years. There is very little reason to think such plan would not be successful
 Concerning resumption of specie payments the Secretary says there has been less than B million of dollars presented for redemption. | while over $76, 900, 900 of coin and bullion has been deposited in the treasury, assay office and hints. He repeats the opinion, which he has often expressed, that the notes of the government can be kept at par with | entire ease under the present law, but he be- | lieves that the legal-tender quality that they | possess in no way aids in the process. He | also calls attention to the unfortunate opera lion of the silver law, under which, in spite | of the greatest efforts of the treasury, no | more than B per cent. of the standard dol lars turned out have been got into circula- tion. He recommends the abandonment of coinage and the adoption of a silver dollar weighing 45O grains, based up- on ratio of 1 of gold to about 175 of sil- yer, to be coined at the discretion of the treasury as demanded for use or exportation He further suggests the recoinage of the standard dollars now on hand in dollars of this kind.
 The national banking system, says the Sec retary, has fully realized all the expectations of it's founders. It has furnished safe cur rency of uniform circulation, carefully guard ed against counterfeiting, protected by ample reserves at the banks and at the treasury, and, except the remission of all taxes on cap Ital and deposits, which is recommended, no other legislation respecting these corpora lions seems to be required
 These are the most important matters dis cussed. If this is the last annual report of the Secretary it is a brilliant ending of the series. We hope, however, that it is not