Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1882-12-07

Ourlng the year there have been organized
III national banks, and of these institutions
| there are now in operation $685. larger
number than ever before. The value Of their
notes in active circulation on July l, 1852,
was 1924, ,656, ,458. | commend to your at
tention the secretary's views in respect to
the likelihood of serious contraction of this
circulation, and to the modes by which that
result may, in his judgment, be averted.
In respect to the coinage of silver dollars
and the retirement Of silver certificates, I
hive seen nothing to alter, but much to con-
firm, the sentiments to which gave express
slons last year. A comparison between the
respective amounts of silYer-dollar circula-
ton on November /, 1881, and on No
vember l, 1882, shows a slight in
crease of million and half
of dollars;. but during the interval
there had been in the whole number coined
an increase of twenty-six millions. Of the
one hundred and twenty-eirht millions thus
far mlnted, little more than thirty-tive mil
lions are in circlation. The mass of accu-
mulated coin has grown SO great that the
vault-room at present available for storage is
scarcely sufficient to contain it. 1t is not
apparent why it is desirable to continue this
coinage, now so enormously in excess of the
public demand. As to the silver certificates.
IN addition to the grounds which seemed last
year to Justify their retirement, may be men
toned the effect which is likely to ensue
whose Issuance Congress recently made pro-
vision, and which are now in active circula-
ton.
THE SURPLUS REVENUE.
You cannot fail to note with interest the
discussion by the secretary as to the neces-
slty of prov iding by legislation some mode of
freeing the treasury of an excess of assets
In the event that Congress fails to reach an
early agreement for the reduction of taxa
trsns,r r~ArI
commentator OF immediate and extern
sive reductions in the annual revenues of the
government. 1t will be remembered that 1
urged upon the attention of Congress at its
last session the Importance of relieving
the industry and enterprise of the coun-
try from the pressure of unnecessary taxa
tion. 1t is one of the truest maxims of DO
ttical economy that all taxes are burden
some. However wisely and prudently i'm
posed, and though there have always been
among ourpeople wide differences Of senti-
ment as to the best methods of raising the
national revenues, and, indeed, as to the
principles upon which taxation should be
based, there has been substantial accord in
the doctrine that only such taxes ought to
be levied as are necessary for wise and eco
nomical administration of the government.
Vi late the public revenues have far ex-
ceeded the limit, and, unless checked
by. appropriate legislation, such excess
will continue to increase from year
to year. For the fiscal year ended
June 80, 1881, the surplus revenue
amounted to one hundred millions of dollars.
For the fiscal year ended on the thirtieth of
June last the surplus was more than one
hundred and forty-fve millions. The report
OF the secretary shows what isposition has
been made of these moneys. They have not
only answered the requirements of the sink
ing fund, but have afforded large balance
applicable to other reductions of the public
debt. But lreneW the expression of my con-
victlon thatsuch rapid extinguishment of the
national Indebtedness as is now taking place
is byno means cause for congratulation. It
Is cause rather for serious apprehension.
If 1t continues it must speedily be followed
by one of the evil results SO clearly set forth
IN the report of thesecretary; either the sur
plus must lie idle in the treasury or the gov
ernment will be forced to buy at market
rates its bonds not then redeemable, and
which under such circumstances cannot fail
to command an enormous premium or the
swollen revenues will be devoted to extrav-
agant expenditure, which, as experience has
taught, is ever the bane of an overhowing
treasury. 1t was made apparent in the
course of the animated discussions which
this question aroused at the last session of
Congress that the policy of diminishing the
revenue by reducing taxation commanded
the general approval of the members Of both
houses. Iregret that because of conflicting
views as to the best methods by which that
policy should be made operative, none of its
benefits have as yet been reaped.
In fulfillment of what deem my constitu-
tional duty, but with little hope that 1 can
make valuable contribution to this vexed
question, | shall proceed to intimate briefly
my own views in relation to it. Upon
the showing of our financial condition at the
close of the lstst fiscal year felt justified in
recommending to Congress the abolition of
internal revenue taxes except those upon
tobacco in its various forms and upon das-
titled spirits and fermented liquors, and
manufacturers of and dealers in such ar
ticles. Il venture now to suggest that, unless
it shall be ascertained that the proba-
bic expenditures of the government for
the coming year have been underestimated,
all internal taxes save those which relate to
distilled spirits can be prudently abrogated.
Such course, if accompanied by simplifi-
cation of the machinery of collection which
would then be easy of accomplishment,
might reasonably be expected to result in di-
minlshing the cost of such collection by at
least two millions and half Of dollars, and
In the retirement from Office of from 800 to
1000 persons. The system Of excise duties
has never commended itself to the favor of the
American people, and has never been resorted
to except for supplying deficiencies in the
treasury, when by reason of special exi-
gencies, the duties on imports have proved
inadequate for the needs Of the government.
The sentiment OF the country doubtless de-
mands that the present excise tax shall be
abolished as soon rs such a course can
safely be pursued. It seems to me, how
ever, for various reasons, SO sweeping a
measure as the total abolition Of internal