The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1881-12-22
TWO REFUNDlNG BILLS
RandalIS Measure for LesSening
Taxation.
After Aiding to Defeat a Democratic
Three Per Cent. Bill, Sherman In
trOduces One of His Own.

WASHINGTON, December 2O.-The re-
funding bill which Mr.. Randall intro
duced in the House Friday, is one of
series of Democratic steps to be taken
in this Congress towards the reduction
of public expenditures, the improve
ment of the public administration and
the reduction of taxation. A three per
cent. funding bill, the product of
Democratic Congress, was vetoed by
Republican President and opposed by
John Sherman, then Secretary of the
Treasury. 1t would have saved millions
of dollars to the country. But for the
Republican veto the expense of carry
ing out by this Congress of a three per
cent. funding bill would have been
averted. John Sherman, whose policy
can change as suddenly as that of any
other public man, vainly endeaYOred by
introducing in the Senate a three per
cent. funding bill on the first day of the
session to steal from the Democratic
party the credit due to this measure of
economy. That portion of Mr.. Ran
dalls bill which fixes by law peremptO-
rily the percentage of reserve to be
held by the Government, instead of
leaving it to the discretion of the Secre-
tary of the Treasury, meets with much
favor. The reserve as dictated by the
Secretary of the Treasury ranged since
January II, 1879. from 36 to 45 per
cent.-a latidude which means many
millions of dollars. During the same
standing of coin and currency certifi-
Gates from both sides of the estimates,
there has been really reserve of cash
against all demand liabilities, includ-
ing United states notes, ranging
from forty to fifty-fve per cent. There
are $64,000,000 now in the Treasury
held as a reserve over and above what
would be held if 40 per cent. were fixed
upon as sufficient reserve for all the
liabilities, excluding the certificates
named above, from both sides of the esti-
mate. This sum might therefore either
be applied to the reduction of the public
debt or serve as hint for the reduction
of taxation. To allow the Secretary of
the Treasury a range of S13O,OOO,OOO,
more or less, in the amount of money he
can at discretion lock up or let loose is
placing the money markets and the
business affairs of the country too COM
pleteIy in the hands of one man. A uni
form percentage of reserve should un-
dOubtedly be fixed by law, beyond which
and short of which the Secretary would
not be at liberty to hold reserve.
This would well nigh take away tho
ury upon the money market, and this
Mr.. Ranlai's biu proposes to do, and In
this MT. Randall will have the support
of some of the most inhuen ial members
of the House. Mr.. Ran ,aIl proposes to
fix this PEI Icentage of reserve at 30 per
cent. The Secretary of the Treasury in
his annual report sharply opposes any
attempt to refund the three and One-half
per cents at a lower rate of interest.
Still more sharply would he doubtless
oppose the fixing by law OF the percent
age of reserve. But Congress will look
to some of the consequences of another
feature of Mr.. Randalls bill. There
were on the 1st of November only $563,-
100000 of bonds of the United Sta es
outstanding, payable at the plea ure OF
the Government. These are the I 1rsOnal
obligations of eX-SecTetaTy WidOm, OF
the three and One-half per cents tC
which Mr.. RandalPs refunding measure
applies. If the new three per cent. loan
were to be promptly taken, absorbing
| all of these three and One-half per cents
| there would remain no bonds of the
! United States which the Government
could buy at par at its option until five
years from the passage of the Randall
| bill. In the meantime our receipts are
| enormously increasing and our expenses
| diminishing, with the exception of the
pension frauds, which are likely to bt
| checked, and what is to be done with Oul
enormous surplus revenues. Last year WI
paid over S100,OOO,0O0 of the public debt
This year we shall pay, if things continue
as they are, no less than $15O,OOO,OOO
We had surplus last year of 100000
600. The amount of bonds redeemed
during the months of July, August, Sep
tember and October of the present yea
is in excess of the requirements of tn
sinking fund for the entire year by NOR
than $6,0O0,0O0 Our receipts last yea
were S300O0,0O0 more than the preced
ing year. The receipts this year owe
and above those of last year will b
more than $40,0OO,00O. Meanwhile eX
penses should be largely reduced. TIL
81 per cents, which alone are payabl
at the option of the Government at pal
I would be extinguiShed at the presen
rate of receipt and expenditure in hal
of five years. There are in the Treas
ury at this time $64OO0,OOO over an
above 40 per cent of total cash to tOta
liabilities, exclusive of coin and curren
cy certificates, which could be- immedi
ately applied to the reduction of thes
Window notes. If the percentage of II
serve were to be reduced to 80 per cen
, nearly as many more millions would
released, applicable also to the purchas
al par OF Ine O12 per Genus, anu WOulu
! course lead to their much more speed
extinguishment. 1t will be ten yeal
i before any other of the Government s.
: curities will be payable at par, and a
: these facts tend to show that unle
a there is an immense reduction in tax
, tiOn and enormous diminution of T
! ceipts, there will be a great surplus
4 revenue. What will the GOvernmel
q do with it? About the only thing it CO
4 do, save to permit it to be stolen or
f shovel it into jobs, will be to go in
: the market and buy bonds at premium
8 and at such premium as the mark
o under such circumstances (the Cover
3 ment being a compulsory purchase
:. would choose to demand. To pay a lar
= premium for ones own notes is not go
n financiering. 1t is evident, therefor
that behind this Tefunding measure
Mr.. Randalrs, there are impOrta
measures waiting to be introduce
y looking towards a positive radical /
o ductiOn of taxation as rapidly as pos
g BILE without violently disturbing or co
IS vulsing present interests based up