Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1882-12-05

bonds without rebate Of tho interest up
to the day named in the call rests upon a |
different basis. A prepayment Of interest |
upon the public debt IL sanctioned by ex-
press provision of law. (See resolution No.
20, OF March, 1864, and the q. S. Rev.
Stats, $685. A reference to the debates
in Congress when that resolution vas
under discussion shows that the motive
for the adoption Of it was that the treas.
ury department might at any time break
q tigEtness in tho money market by put
ting out money idle in its vaults.
The power thus given has OF late been
used for thai purpose. Though this does
not give gain to the holders of the bonds
it puts 10 loss upon the government. The
treasury uses for the prepayment money
that it needs not foc use in other ways and
yields no interest. and which it must at
last use for paying just what it pays in
advance, aud to no more than the amount
that it must at last pay. In paying a high
premium, however, it pays what it is
bound ever to pay, and it is not certain
event that it will ever make itself whole
again, and to the extent of some part of
the premium, it extinguishes no debt.
1t is doubtless good policy to extirguisil
the long bonds of the government rather
than those payable at its pleasure, for the
timo is at hand wher, with the present
rate of receipts and tho present rate of
payment of the public debt, all tho bonds
subject to optional time of payment will
have been called in. Then, if therc be
surplus i'll tho treasury, there will be no
outlet for it save by purchase at largo
premium OF long bonds, or the disburse.
ment OF it through appropriations for pur-
poses beyond the ordinary and economical
needs OF the government. It is, there
fore, for Congress to consider tho pro-
priety OF empowering this depar tment to
buy tie long bonds at high premium
Ii It sli:sl! deem i: polite t. make general
purchases OF bonds at such premium for
extinguishment, it should by law give to
this department express authority so to do
and thus adop: that policy.
There have been other suggestions of
modes Of freeing the treasury of an excess
OF assets. The national bank act, section
35 Omitted States Revised Statutes, sec.
tion 5133), provides for the designation of
national banks as depositaries of public
moneys, security being taken in a corres-
pOnding deposit of United States bonds.
All moneys received for customs must he
paid into the treasury, and no part of them
| can be placed in national bank deposi-
taries. 1t is seen that if they, or any part
of them, were deposited with national
bank depositaries, they would soon find
their way back into tho currents of bust
ness in loans and discounts, as do now the
receipts from internal revenue taxation.
There arc in the treasury over fifty
millions of dollars, being the five per cent.
fund for the redemption of national bank
notes, and the fund for the redemption of
notes of national banks that have failed.
These funds have not been treated by the
department as "public moneys" within
the intent Of tho sections above cited, and
have been kept in the treasury. If Con.
words "public moneys" which would
take in these funds, and they be put on
deposit with the public depOsitaries, the
same results would follow as above sug-
gested as to customs receipts. ............
The figures arc given which show an esti-
mated surplus of public moneys for the
fiscal year ending June 80, 1883, upon the
basis of existing laws, and including the
sinking fund, Of $75, ,577, ,O43.75.
Unless some disturbing cause comes in,
not now foreseen, that surplus will in
; crease from year to year as the interest on
the pubic debt decreases. For without such
cause the revenues from all sources will
not be diminished if the laws productive
thereof remain unchanged. AS SO great an
annual surplus is tho direct result of tho
existing revenue laws, what will be tho
> financial condition of the country il these
laws remain unchanged aud taxation be
; not reduced :?
In connection herewith should be borne
i'll mind the increasing expenditure for
pensions, as likely to affect in some degree
the increase of surplus.
There are 269,67S claims pending, of
which 197, G23 are for arrears requiring. if
allowed, for the first payment, 5000, ,OOO,-
600. There are nOw due and payable at
the government pleasure s155, $50. $50 Of
81 per cent. bonds and $3.50, $40, 500 Of )
per cents.
The amount Of funded debt redeemable
at any time before September /, 1891,
which will remain unpaid on the 3Oth OF
June, 1888, is about $500, ,0O0, 900, and
upon the foregoing estimates for the fiscal
year cuding June 30, 1888. the whole
! funded debt now redeemable could be
paid before June 30, 1886. This would
leave as tho surplus for moro than five
years the amount Of 5000, 600, 600, undis-
) posed Of in the treasury, unless, yielding
| W LbO GCuptltAcu u cCChlAuS, Wcditu, CA-
penditures be largely increased. The
amount of the loan redecmable in 1891 is
only s250, O0O, 600, and as has been stated,
no other loan becomes redeemable until
1907, SO that the surplus under the condi-
tions supposed will rapidly increase until
that date. The amount of the loan of
1907, as already appears, is less than $40.
O0O, 900. so that, were it all redeemable
y the whole public debt could be paid from
I. a surplus as great as estimated early in the
fiscal year ending June so, 1894.
This amount OF surplus is not contem-
plated by the secretary with satisfaction :;
and as relief he recommends q reduction
taxation. He believes in retaining the tax
on liquors and tobacccs, and releasing
all other subjects of internal taxation. He
also favOrs reduction of customs duties
and upon this subject says:
In reading the testimony before tho
tariff commission it is to be observed that
with scarcely an exception, the represen-
J tatlve Of every industry, while conceding
that q general reduction of the tariff is
. proper and necessary, has claimed that its
peculiar product can submit to no reduc.
tiOn of the protection now afforded.
While the views of the manufacturers are
to be weighed, it is manifest that they
will never bo able to agree upon a reduc-
ton Of the tariff duties.
All agree that revision of the tariff is
necessary. The action of Congress in Gre.
ating commission for that purpose rem.
| derS discussion on that point unnecessary.