American citizen. [volume] (Canton, Miss.) 1864-1890, 1880-12-18
The Treasury.

| frxtr,cts from the Annual Report Of tn,
| Secretary Of the Treasury
| The ordinary revenues from all sources TO,
| the fiscal year ended June 80, 1850 were $3sS
| 5si6IO9S
| The ordinary expenditures for the same
| reriod wer, s267 g4s a57. "A. Ieuvipu a surpIu.
r.,orue of s65 sSl car 70 which with ar
amount drawn from cash balance in Treasur,
| of 50 Os4 .:,.sI, making SO 96s os7 Al, was ap
| plied to the redemption of bonds, fractional
| currency, loan of 1868 temporary loan, boun
ty-iand scrip, compound interest notes, 30
notes of 1864 -e5 one and two-year notes, and
old demand notes.
The amount due the sinking fund for this
year was $ST 93l, 643.55. There was applied
thereto from the redemption of bonds and
fractional currency as shown in the above
statement the sum Of S13, sO4 ,6I7.4I, an excess
of S35 s12 ga. 50 over the amount actually re-
uuired for the year.
The requirements of the Sinking-fund law
have been substantially observed, and tho
principal of the public debt, less cash in the
Treasury and exclusive of accruinR interest,
has been reduced from $S,15d 43i,5 7l-E3, its
highest point, which it reached ON August 81,
1855, to $l.s9J,es5, oSs, on November i, lSS0-a
reduction OF $500, 4O5,SdS5i.
Compared with the previous fiscal year, the
receipts for 1850 have increased ga, tfs9. 43s -
The expenditures show an increase over the
previous year of SIS, l90,360.4s.
The act of February -, lSd2, amended by the
act of July IA, 1870, providing for sinking
fund for the payment OF the public debt, is in
conformity with the policy which has prevail
ed since the adoption oil the Constitution, OF
regarding public debt as temporary bur
den, to be paid on as rapidly as the public in
terests will allow. The provisions OF these acts
have been substantially compled with. They
were executed literally, until the panic OF
1913, by largely decreasing the revenues VI the
Government, rendered IL Impossible 10 meet
their requirements
REFUNDiNG.
A large portion ($6SI,coo65U OF the public
debt becomes payable or redee mable ON or be-
fore July l, next.
The Secretary recommends tnat provision
be made Tor the issue OF an amount not e1-
ceedinS s4odoJo,ooo OF treasury NOTES IN oe-
; mu ,,,,, .ro.d,nr s,,r nor cont ner an.
interest," not e1cceolns iour per cen'- per an-
mum, ana running from one 10 ten years. 10
be sold at not less tnaL par, inc amount
maturing during any year not to exceed
the sinking-fund for that year, and
the proceeds to be applied to the
payment of five and six per cent. bonds, ma
turing in 1881. 1t is also recommended that
authority be given to sell AT par an amount not
exceeding SlOO,000O00 of bonds of the charac-
ter and description 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-hundi edths 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 re-
deemable on or before July ], 1881.
RESUMPTION.
Nothing has occurred since my last annual
report to disturb or embarrass the easy main
tenapce of specie payments. United States
notes are readily takcu at par with coin in all
parts of this country and In the chief COM
mercial marts of the world. The balance of
coin in the Treasury available for their re-
demptiou on the first day of November last
was sl41.59 oI3.6l. and the average during
tho vcar has not materially varied from that
s,,m The only Noticeable change in the re-
sor,,a ia tho GRADUAL increase of silver coin
e,.,,s,a h, ,ha co;p,ee Of tho silver dollar and
.'"ses :. =, r.,.,,;.n.I st,,.or coin =
nv .
&c., rs NnSya ,Ts
,v.. x.os sss inc amount Of coin or bullion
danoaite,, in the Treasury assav office and the
mint. during the same period was 81, 3s6 53s55-
az These deposits have usually been paid for
In coin. through the clearing house, but at
times when the currency in the Treasury
would allow. and at tho request OF the deposit
ors they have beea paid for in United States
notes and silver certificates Gold,coin now
enters IaryeIv into general circulation. The
t,t.I coin l., the TREASURY MT the close of b,,si-
go Noyemh,,. , was xs,s no ia of which
xIlI sar ora III constituted the reserve fund for
the redemption of United States notes, as
above stated.
UNITED STATES NOTES.
United States notes are now, in form, secu-
rity and convenience, the best circulating me
dium known. The objection is made that they
are issued by the Government and that it is
not the business of the on vermont to furnish
paper money. but only to coin money. The
answer ia mat the Government had to borrow
mote 70 the extent that Il is Willingly taken
Inv the people and can, beyond question be
maintained at par in coin, Is the
least burdensome form Of debt. The
loss of interest in maintaining
the resumption-fund and the cost OF printing
and engraving the present amount of United
States notes. are less than one-half the interest
ON an eouaI sum of four per cent bonds. The
publ,e mus saves over seven millions dollars
of annual interest. and secures \ safe and con-
vonient medium of exchange. and has the
assurance that a sufficient reserve in coin.
viii ne retained in the Treasury beyond the
temptation of diminution. such as always
attends reserves held by banks.
Another objection to the issue of United
States notes Is, that they arc made a legal
tender in the payment of debts. The ques-
ton of the constit utional power Of Congress
to mako thom such is one for another branch
of the Government. The Secretary OF the
Treasury is still of the opinion that this quality
of legal tender does not add 10 the usefulness,
safety, or circulation of United States notes.
So far as it excites distrust and opposition to
this form of acknowledgements 1t Is detrf-
ment- The fear that a withdrawal OF TINS at
triputc Will coh'iuc' INC eoi'eue' IA 10 Uo
sNe Us "as '"e AS"A 'A"s 49,,
nave IKE enec'' lug no.oS "o
still oe receNoo auo pau w. W ~
government, "o' Ao g 49,.
no. DC rciueeu IN pa' -
wnlle tney wore reoeein"oio "iiu PioaPS