The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1882-12-07

1901
During the year there have been organized III
are now in operation 2,269, larger number thai
before. The value of their notes in active cir
culation on July l, 1882, was $s24, 1856, 49, fp9s
commend to your attention the Secretary's views
in respect to the likelihood Of serious contraction
of this circulation, and to the modes by which tina
result may in his Judgment be averted.
In respect to The coinage Of silver dollars and the
retirement of silver certificates have nothing
to alter but much to confirm the sentiments te
which gave expression last year.
comparison between the respective amounts Of
silver-dollar circulation on November 1, 1884, and
on November l, 1882 shows a slight increase Of q
million and half Of dollars. But during the in
terval there had been in the whole number coined
an increase of twenty-six millions. OF the one hun
dred and twenty millions thus far minted, lit
tie more than thirtyve millions are In circulation
The mass Of accumulated coinhas grown SO great
that the vault at present available for storage
is scarcely sufficient contain it. 1t is not apparent
why 1t is desirable to continue this coinage now
enormously In excess of the public demand.
AS to the silver certificates, In addition to the
grounds which seemed last year to justify their
tirement may be mentioned the effect which is
likely to ensue from the supply Of gold certificates
for whose Issuance Congress recently made proyi
sion, and which are now in active circulation.
You cannot fail to note with interest the discus
sion by the Secretary as to the necessity of pro-
viding 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
heartily approve the secretaryss recommends
ton Of immediate and extensive reductions In the
annual revenues of the government.
1t will be remembered that urged upon the at
tenton OF Congress at Its last session the fmpor-
lance of relieving the industry and enterprise of
the country from the pressure of unnecessary tax
alton. 1t is of the trfteSt maxtmS of political
economy that all taxes are burdensome, however
wisely and prudently imposed. And though there
have always been among our people wide dtf1er-
ences Of sentiment to the best methods OF rails
ing 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 nee
or a w lac md mi administration OF
the government. OF late the public revenues have
far exceeded that limit and unless checked by ap-
propriate legislation such excess will continue to In
crease 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 30h Of June last the surplus was more
than one hundred and forty-fve millions.
The report of the Secretary shows what dtsposi-
ton has been made of these moneys. They have
not only answered the requirements Of the sinking
fund, but have afforded large balance applicable
to other reductions of the public debt. .,..--s
But renew the expression OF my CONVICTION that
such rapid extingu1shment of the national fndebt-
edness as Is now taking place Is by no means a
cause for cOngratulattOn; 1t is cause rather Tor
serious apprehension.
If it continues, it must speedily be followed by
of the evil results clearly set forth In the re-
port Of the Secretary. s4
Either the surplus must lie idle in the Treasury,
the government 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 extravagant expenditure which,
overlooking treasury
1t was made apparent in the course Of the ami
mated discussions which this question aroused at
the last session of Congress that the policy OF d.
minishing the revenue by reducing taxation COM
manded the general approval OF the members Of
both Houses.
1 regret that because of conflicting Views as to
the best methods by which that policy should pe
made operative Of Its benefits have as YET been
reaped.
In fulflment of what deem my constitutional
Duty but with little hope that 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 last fiscal year, feel justified in
to Congress the abolition OF all In
ternal reyenue taxes except those upon tobacco In
Its various forms and upon distilled spirits and fer
mented liquors. and except also the special tax
upon the manufacturers Of and dealers In such ar
ticles.
1 venture now to suggest that, unless II shall be
that the probable expenditures OF the
for the coming year have been under
all internal taxes save those which relate
to distilled spirits can be prudently abrogated.
Such a course, IL accompanied by a simpithcat1oH