The National tribune., 1881-12-10

S~>~~~N"oo~O--~
lows:
By reduction of interest to three and
one-half per CENT s21 20 20
Total '.'.''sio -'I 20
The three and one-half per eentum bonds, be-
ing payable at the pleasure o. the Government,
are available for the investment OF surplus reve-
nue. without the payment of premiums.
Unless these bonds can be funded at much
lower rate of interest than they now bear, agree
with the Secretary of the Treasury that no legis-
lation respecting them is desir.ble.
TAXATION.
Regarding this question, ths President says:
1t is matter for congratulstlon that the Dusl-
ness of the country has been 81 prosperous during
the past year as to yield, by taxation, large
surplus of income to the Government IT the
revenue laws remain unchanged this surplus
must, year by year, increase, on account OF the
reduction of the public debt and its burden of
interest and because of the rpld increase OF our
population In 1860, just pritr to the institution
of our internal revenue system, our population
but slightly exceeded 30OOO,OO; by the census
of 1880 it is now found to exceed 50,OOO,OoO 1t
is estimated that even if the annual receipts and
expenditures should continue as at present, the
entire debt could be paid in ten years.
In view however, of the heayy load OF taxation
which our people have alresdy borne we may
well consider whether it is no the part OF wisdom
to reduce the revenues, even ii we delay little
the payment of the debt.
It seems to me that the tine has arrived when
the people may Justly demand some relief from
their present Onerous burdm, and that by due
economy in the various branches OF the pubnc
service, this may readily be afforded.
I therefore concur with theSecretary in recon-
mending the abolition of al Internal Revenue
taxes, except those upon to1acc0 IN Its various
FORMS and upon distilled solrits and fermented
liquors; and except, also, tie special tax upon
the manufacturers Of and deslers in such articles.
The retention of the latter tax is desirable as
affording the officers of the Government proper
supervision of these articles for the prevention OF
fraud Iagree with the SECRETARY of the Treasury,
that the law imposing stamp tax upon matches,
proprietary articles, playing cards, checks, and
drafts, may, with propriety, be repealed, and the
law, also by which banks anG bankers are assessed
upon their capital and depOsits. There seems to
be general sentiment 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 demanded
by the necessities of war, and was never exacted
I believe in any other country, even in its great
est exigencies.
The retention of this tax has been suggested
as a means of mbursing the Government for
the expense of printing andfurnishing the clrcu-
lating notes. If the tax should be repealed it
would certainly seem proper to require the
national banks to pay the amount OF such eX-
pense to the Comptroller Of the Currency.
1t is perhaps doubtful whether the immediate
reduction of the rate of taxation upon liquors
and tobacco is advisable, especially in view of
the drain upon the Treasury which must attend
the payment of arrears of pensions A COM
parisOn, however, of the amount of taxes col
lected under the varying rates of taxation which
have at different times prevailed suggests the
intimation that some reduction may soon be
made without material diminution of the revenue
The tariff laws also need revision; but. that
due regard may be paid to the conflicting in
terests of our citizens, important changes should
be made with caution. If a careful revision
cannot be made at this session. a commission
such as was lately approved by the Senate and
is now recommended by the Secretary of the
Treasury would doubtless Tighten the labors of
Congress whenever this subject shall be brought
to its consideration.
ARMY AND NAVY.
The President cOncurs in the recommendation
of the Secretary Of War for increasing the army
to 10000 enlisted men, suggests the need of legs-
lation to prevent intrusion upon lands set apart
for the Indians, and advises more adequate ap-
preparations for casual support OF Indians whose
appropriations have become exhausted. in order
to relieve the War Department from contributing
thereto.
An increase OF the strength OF the engineer
battalion Of the army is also recommended.
Speaking of the report of the Secretary of the
Navy, the President says:
cannot too strongly urge upon you my con-
victlon that every consideration ofnational safety
economy, and honor imperatively demands a
thorough rehabilitation of our Navy.
With full appreciation of the fact that COM
pllance with the suggestions of the head of that
Department and of the Advisory Board must
involve large expenditure of the public moneys,
[ earnestly recommend such appropriations as
will accomplish an end which seems to me so
desirable
Nothing can be more inconsistent with true
public economy than withholding the means
necessary to accomplish the objects intrusted by
the Constitution to the national legislature One
Of those Objects and one which is of paramount
Importance, is declared by our fundamental law
to be the provision for the common defense"
Surely nothing is more essential to the defense of
the United States and of all our people than the
efficiency of our Navy.
We have for many years maintained with
foreign governments the relations OF honorable
peace, and that such relations may be permanent
is desired by every patriotic citizen of the Re-
public
But if we heed the teachings of history. we
shall not forget that in the life of every nation
emergencies may arise when a resort to arms can
alone save it from dishonor.
No danger from abroad now threatens this
people, nor have we any cause to distrust the
friendly professions of other governments.
But for avoiding as well as for repellino dangers
that may threaten US in the future we must be
prepared to enforce any policy which we think