New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-12-07
THE FINANCIAL POLTCY OFTHE IDWINIS-
7RAIION

TRAIiON
! The annual report of Secretary Fo-cr. next
10 the Presidents message, is the most inter
/ csting of The public documents submitted to
! Congress. The people have learned in some
measure, within the past ten years, how greatly
their prosperity and the success of their indus
try depend upon wise financial administration
and legislation. Though there is mt this time
no serious apprehension of financial trouble, 1t
is probable that no previous report Of Score
tary Of the Treasury has been awaited with
more general interest because il is now well
understood that exceedingly important financial
changes are to be proposed during the present
session Of Congress. The recommendations Of
the President and the Secretary of the TTea-
sury, as they cIarcy concur, may properly DC
considered together.
The country will he greatly treasured by the
wise conservatism Of these important docu-
ments. The soundcst and most progressive
thought Of the country, it is safe to say, will
regard the financial position of the Admins
tration with satisfaction. The recommended
tons of vital Importance are that the issue of
silver certificates shoud be stopped that the
coinage Of silver dollars should hereafter be-
limited to the amount which the business Oh the
country may require; that the extended three
and a half per cents should not be- disturbed by
a new rcfundng scheme, unless it be found
practicable to place long term bonds bearing
much lower rate Of interest; that thc excessive
taxation of National banks should be reduced.
and the National banking system conserved
and perfected; that the surplus revenue should
be diminished by abolition of other internal
taxes than those upon spirits and tobacco aud
that revision Of the tariff should be made with
great care, and by the aid OF a Commission
especially qualified for the work.
To those who are well-lnformcd in financial
matters, the wisdom Of these recommendations
will appear Obvious. But Secretary Folger
supports them with able arguments and patient
explanations, and his report deserves high
praise for its clcarness of statement and force of
reasoning. 1t may be hoped that it will have
great weight with Republican Congress.
The President might wisely have gone fur
Tier than he does as to the unwisdom
of Fastening the extinction OF the Public
Debt. TO pay it off at the present rate
would in a few years destroy the basis for
our National Banking system, which CONNIE
tent Judges abroad as well as at home pronounce
one of the very best and safest in the world.
The silver question is treated with thorough
ness and fTanlness, and yet in spirit which
must commend the report to those who have
advocated silver coinage. Ii is shown that of
the dollars already coined only nc-thrd can he
actually used and that the rest either lie idle
in the Treasury or serve only as a basis for an
increased paper circulation. The defects of
this additional issue of paper are in part shown,
and the Secretary states his belief that a safer
and more useful circulation would be supplied
if needed at all, by the National banks. 1t has
long been apparent that the issue of silver GER
tiGcates only served to crowd out of the way
the circulation of bank notes, and to limit the
expansion of that circulation at times when
expansion would serve the needs of business
Ii is therefore recommended that no more GER
tifcates be issued and those outstanding will
speedily return to the Treasury through pay
ment of duties. The concurrent opinion of most
competent bimetallists, i'll this country and in
Europe, is that continued coinage of silver by
this country helps to prevent an agreement of
nations on the subj ect. On this ground, which
the advocates of silver coinage will fully ap-
preciate, the Secretary recommends that COIN
age of silver dollars should hereafter be limited
to the amount necessary TO supply the actual
demand.
The treatment of the banks which is recon-
mended by the President and the Secretary
will not meet the approval of many Democrats.
While it is proposed to restrain the banks from
retiring circulation WITHOUT notice, in order 10