Huntsville gazette., 1881-12-10

dues. About sixty six millions of them are
now outstanding. They form an unnecessary
addition to the paper currency, a sufficient
amount OF which may be readily supplied by
the national banks, in accordance with the
act of February %, 1878. The Treasury De
partment has monthly caused at least two
millions in value of silver bullion to be coined
into standard silver dollars; l02 millions of
these dollars have been already coined. while
only about thirty four millions are in circula-
ton
For the reason which he specifies, I concur
in the SecretaryS recommendation that the
provision for the coinage of q fixed amount
each month be repealed, and that hereafter
only so much be coined as shall be necessary
to supply the demand. The Secretary advises
that the issue of gold certificates should not
for the present be resumed, and suggests that
the national banks may properly be forbidden
by law to retire their currency except upon
reasonable notice of their intention to do so.
Such legislation would seem to be justified by
the recent action of certain banks on the oc-
casion referred to in the Secretary's report.
In the last annual report of the Secretary of
the Treasury the attention of Congress was
called to the fact that S469 65l ,050 in five per
centum bonds and S203 ,573, $50 in six per cent
um bonds would become redeemable during
the year, and Congress was asked to author
ize the refunding of these bonds at a lower
rate of interest. The bill for such refunding
having failed to become law, the Secretary
of the Treasury in April last notified the
holders of the Sl95, 400 six per centum
bonds then outstanding that the bonds would
be paid at par on the first day of July follow
ing, or that they might be continued at the
pleasure of the Government to bear interest
at the rate of three and one half per centum
per annum. Under this notice $l7S,0 $50 of
the six per centum bonds were continued at
the lower rate, and $l7 ,635 250 were redeemed.
In the month of May like notice was given
respecting the redemption or continuance of
the S439, ISL, $50 OF five per cent. bonds then
outstanding, and of these Si0l 504 900 were
continued at three and a half per centum per
annum and 81. 1856 100 redeemed. The six per
nf loan EphTudI'V
1866 and of the oregon war debt, amounting
together to Sl4 ,l25, 500, having matured during
the year, the Secretary OF the Treasury gave
notice of his intention to redeem same, and
such as have been presented have been paid
from the surplus revenue. There have also
been redeemed at par Sl6,l19 100 OF the three
and one half per centum continued" bonds,
making IA total of bonds redeemed or which
have ceased to bear interest estimated during
the year of Sl2S S969,650.
The reduction of the annual interest on the
public debt through these transactions is as
follows: BY reduction of interest TO 3A per
cent. 81 ,0i7, ,395 ,227; by redemption of bonds,
S635 ,23i 000 total, 81, $50 ,629 225. The 3h per
centum bonds, being payable at the pleasure
of the Government, are available for the in
vestment of surplus revenue without the pay
ment of premiums. Unless these bonds can
be funded at a much lower rate of interest
than they now bear, agree with the Secreta-
ry of the Treasury that no legislation regard
ing them is desirable. 1t is Il matter for con
graduation that the business OF the country
has been so prosperous during the past year
as to yield by taxation II large surplus OF in
come to the Government.
If the Revenue laws remain unchanged this
surplus must wear by wear increase, on ac-
count Of the reduction Of the public debt and
its burden of interest and because OF the rap
id increase of our population. In 1860, Just
prior to the institution Of our Internal
revenue system our population but
slightly exceeded 30,000OO0 BY the Census
of 1880, it is now found to exceed fifty mil
lions. 1t is estimated that even if the annual
Scln
at present, the entire debt could be paid i'll
ten years In view, however, of the heavy
load of taxation which our people have al
ready borne, we may well consider whether
it is not the part OF wisdom to reduce the rev
enue, even if we delay a little the payment of
the debt.
ABOLISHING INTERNAL REVENUE TAXES
1t seems to me that the time has arrived
when the people may justly demand some re-
lief from their present enormous burden. ana
that by due economy in tie various branches
of the public service this may readily be al
forded. l therefore concur with the Secre-
tary in recommending the abolition of all in
ternal revenue taxes, except those upon to-
baccO in its various forms and upon distilled
spirits and fermented liquors, and except
also the special tax upon the ma alutacturers
of and dealers in such articles The retention
of the latter tax is desirable as afOrding the
officers of the Government Il proper supervl-
sion of these articles for the prevention
of fraud.
agree with the Secretary of the Treasury
that the law imposing a stamp tax upon
matches, proprietary articles, playing cards,
checks and drafts, may with propriety be re-
Dealed and the law also by which banks and
bankers are assessed upon their tpital and
deposit. There seems to be general sentl-
ment in favor of this course.
In the present condition OF our revenues the
tax upon deposits is especially unjust. 1t was
never imposed in this country until it was de-
manded by the necessities OF the war, ana was
never eXacted, believe, in any other coun-
try, even in the greatest exigencies. Bankers
are required to secure their circulation by
pledging with the Treasurer OF the
United States bonds of the General GOV
ernment and the interest upon these bonds,
which at the time when the tax was
imposed was per cent Is now III most IN
stances, 81 per cent, and besides, the entire
circulation was originally limited by law and
no increase was allowed. When the existing
banks had practically monopoly OF the BUS
mess there was force in the suggestion tnat lor
the franchise to the favored grantees the OoV-
ernment might very properly exact tax on
circulation but for years the system has been
free and the amount of circulation regulated
by the public demand. The retention OF TINS
tax has been suggested as a means OF REIN.
bursting the Government for the expense OF
printing and furnishing the circulating notes
if the tax should be repeatedly would certainly
seem to be proper to require the natlonal
banks to pay the amount OF such
expense to the Comptroller of Currency.
1t is perhaps doubtful whether the 1mme-
diate reduction of the rate OF taxation upon
liquors. ETC., is advisable, especially IN
view of the drain on the treasury Wn1cn must
attend the payment Of arrears OF pensions.
comparison, however, of the amount OF taxes
collected under the varying rates OF taxation
which have at different times prevailed sug-
pests the intimatiOn that some reduction may
soon be made without material diminutlon OF
the revenue. The tariff laws also need re-
vision but that a due regard may be paid to
the conflicting interests OF our citizens, I'M
portant changes should be made with caltlol
If a careful revision can not be made at this
session n commission, such as was lately dp-
proved by the Senate and is now recommend :
ed by the Secretary of the Treasury, would
doubtless tighten the laborS OF congress
whenever this subject shall be brought TO ITS
consideration.
The accompanying report OF the secretary
of War will make known the operations OF
that department for the public. He suggests
measures for promoting the efficiency OF the
army without adding to the number OF It's
officers and recommends legislation neces-
sary to increase the number of enlisted men
to 20 OO0 the maximum allowed by law. Inls
he deems necessary to maintain quletneS5 on
our ever shifting frontier; to preserve peace
and suppress disorder and marauding IN new
settlements: to protect settlers ana tnelr
property against Indians, and Indians against
the encroachments of intruders, ana 70 ena-
BILE peaceable immigrants to establish MONIES
in the most remote parts OF our country.
The army is now necessarily scattered over
such a vast extent of territory that whenever
an outbreak occurs reinforcements must
he hurried from many quarters over great
distances and always at heavy cost Tor the
TRANSPORTATION of men, horses, wagons and
supplies. concur i'll the recommendation q