The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1882-12-08

including public buildings, lighthouses and
tyres on account OF the District Of Columbia,
81 81: for interest on the public sbt s7l,
OF 2Od ~; total ordinary expenditures, f2S,9Sl,
~ .55, leaving surplus revenue OF Sl45.bI3.-
SOIL: which. with an amount drawn from
the cash balance in the treasury of Sl0.73T G54s4
making sl6e. .50n65 was applied q the
redemption of bonds fur the sinking fund. $780,
| 0T9ls0: OF fractional currency tor the sinking
fund, s5 70a- $50; OF loan of July and August.
lsoi. s'a572,ebo: of loan OF March, 1893, s4,t72-
$40; Of funded loan OF 1871, S3!19i,450: OF loan
of 1884, slOO,0OO: of loan Of February 1861 $780,
30; Of five-twenttcs Of 1872. <2iMOt0; of five
twentes OF 1884, s74oooo; of fve-twentles of 1865,
Sc 800: OF tcnforties Of 1885, $54 $780, of consols Of
1867 $50 l5O of consols OF 1867 si0s $50; of con-
soils OF 1868, sl4i.4oo; of Oregon war debt, $780,
$50; OF old demand compound interest and other
| no .es Sls,35o: total si6o 2si .bOS55
THE FOREIGN COMMERCE
of the United States during the last fiscal year,
including imports aud exports of merchandise
and specie, was ~ follows Exports-Merchan-
disc $780, 742, 27a; specie St9,4l7479; total $799
go. -@ Observation-Disclosures $724, 639, 574; spc-
Gle S42,472,s 500 total S767, .0G4 The excess OF
exp',, ITS, yer imports OF merchandise, 81 9o2,-
any Of The previous six years, appears by the
following tablo: Year ended June 80, excess OF
Exports over imports Of merchandise, 1876, s79,
6i3 49, 1877 sl5i, 1872 4 1878. S257, Sl 234: 1872
S26i, G6 ESQ., 1870, .6S392 1881, $3.50, 7l2 7IS:
1882, s2a,9O2,6
NATIONAL BANKS
During the year there have been organized III
national banks, anu vf these institutions there
are now in opcrau n 2,259-a larger num-
Der than eve before The value of their
notes in actual circulation ON July /.
1892. was 1874, 656.45s l commend to your
attention the Sccretary's viows In respect
Of this his GRADUATION and to the c'G modes by Which
that result may, in his judgment, be averted
CoINAG
In respect OF the coinage Of silver dollars and
the retirement of silver certificates. have seen
nothing to alter. but much TO confirm. the sem
timonts to which gave expressly last year A
comparison between the respective amounts OF
silver dollars in circua ion on Nov. l, 1881, and
on Nov ], 1912, shows slight increase of i,50O,-
| 90, but during the In erval there had been in
the whole number coined an increase OF &26 0o).-
90. OF the $3.50 1900 thus far minted title
more than s35, 100 are IN circulation. The
mass of accumulated coin has grown 50 great
| tn the vault room at present available for
storag il scarcely ufficient TO contain IT, 1t IL
not apparent why it il desirable to continue this
coinage now. 40 enormously III excess of the
public demand.
SILVER CERTIFICATES
As 70 the silver certificates, in addition TO the
grounds which seemed last year To justify their
retirement, may he mentioned the effect which
If likely TO ensue from the supply OF gold GER
titcates for which issuance Congress recently
made provision, and which are new in active
circulation.
REDUCTION OF TAXES
You cannot fail TO notice with interest the
discussion by the Secretary to the necessity
OF providing by legislation some mode OF free
ing the treasury OF an excess OF assets. in the
event that Congress fails to reach an early
agreement for the 6duction of taxation, heart
lily approve the Sccretarys recommended ion OF
immediate and extensive reductions In the
nual revenues Of the Government IN will be re-
membered that i urged upon the attention OF
Congress at il last session tho importance OF
relieving the industry and enterprise OF the
country from the pressure from unnecessary
taxation. 1t IL one OF the tritest maxims OF
political economy that all taxes burden
some. however wisely and prudently imposed
and though there have always en-
among our people vide differences Of sentiment
as to the best methods of raising the national
revenues, aud. indeed, az 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 "a are necessary
! for wise and economical administration Of
! the Government. OF late the public revenues
have far exceeded that limit, and unless checked
by appropriate legislation, such excess will con-
tinue TO INCREASE from year TO year. For the
fiscal year ended June 80, 1881, the surplus
enue amounted 20 sl000OO,0oo For the fiscal
year ended on the S0th Of June last, the surplus
Was more than $li5,00I,000 The report OF the
! secretary shows what disposition 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 re-
auctions OF the public debt But l renew the
expression of my conviction that such rapid ex-
| tipgutshment of the national Indebtedness az is
/ now "a ng place Is hy means a cause for
congrdtu alton IL Is n cause rather for serious
| apprehension. II IL continues, 1t must speedily
be followed by one OF the evil results clearly
set forth In the report OF the Secretary. Either
the surplus must lie idle in the treasury, or the
Government will be forced to buy, at market
/ rates, its bonds, not then redeemabe, and
which, under such circumstances, cannot fail
/ TO command an enormous premium, or the
swollen revenues will be devoted TO eXtravagant
! expenditure, which, as experience has taught,
! Is ever the bane of an ovel flowing treasury lt
was made AZ parent. in the course of the animated
! discussion which the question aroused at the
| last session OF Cong ess, that the policy OF
| diminishing the revenue by reducing taxation
commanded the general approval OF the MEM
! ber- OF both houses regret that because of
/ In hAG hN
] which that policy should be made operative
none of its benefits have az yet been reaped. In
/ fhfilment of what l 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 re alton to it,
Upon the showing of our financial condition
M Che close of the last fiscal year j felt justified
| in recommending TO Congress the abolition OF
! internal-revenue taxes except those upon tobacco
in its various forms and upon distilled spirits
and fermented liquors, and except, also, the
! special tax upon the manufacturers and dealers
! in such articles. / venture now to suggest that
unless IL shall be ascertained that the probable
expenditures Of the Government tor the coming
/ wear have been underestimate all internal
taxes those which relate to distilled spirits,
can be prudently abrogated. Such course IL
accompanie by simpliication of the machinery
of collection, which would then be easy Of
accomplishment, might reasonably be expected
! 10 result in diminishing the cost of such
collection by at least two millions and half, and
in the retirement from Office OF from 800 TO 1000
|
commended itself to the favor of the American
| people, and has never been rcsorted To except
tor supplying deficiencies in the treasury, when,
| by reason OF special exigencies, the duties on
| imports have proved inadequate for the needs of
| the Government
The sentiment OF the country doubtless com
mands that the present excise tax shall be abOl-
/ ished "a soon as such course can safely be pur
sued. II seems to me, however, for various
reasons, 40 sweeping = measure IA the total abo-
ltion of internal taxes would, for the present, be
an unwise step. Two of these reasons are de-
serving of special mention.
l. II Is by no means clear that, even II the
| listing system of duties on imports IL continued
without modification, those duties alone will
| yield sufficient revenue for all the needs Of the
| Government. 1t Is estimated that 500, 0o0,0UO
will BE- required for pensions during the coming
! year, and IL NAV well be doubted whether the
maximum annual demand tor that object has
| vet been reached. Uncertainty upon this ques-
ton would alone justify, In my Judgment the
retention, for the present, OF that portion OF tho
systcm OF internal revenue which IL least OBJ
| jectionable TO the pcopc.
2 total abolition of excise taxes would al
most inevitably prove serious II not an insur-
mountsble objection To thorough revision OF
/ the tarif. and TO any considerable reduction In
import duties.
THE PRE- ~ Mt TARIFF SYSTEM
| IL. In many respects, unjust. IL makes unequal
! distribution both OF its bu dcns and It's benefits
| This fact was pr,ctic Nv recognized by a major
I ity OF each house ~ Congress-, In tn passage of
| the act Grating tho Tariff Commission. The re-
u Irt OF that commas ton will be placed before