Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1882-12-06
The Presidents Message.


The message opens with a statement OF the con-
diton Of our relations with foreign powers, which
the president says are satisfactory. We COM
mence our extracts from the message with the
first domestic subject OF special interest OF which
the document treats:
THE TREASURY DEPARTMENT.
A full and interesting exhibit OF the operations
OF The treasury department IL afforded by the re-
port OF the secretary II appears that the ordinary
revenues from all sources for the fiscal year
ended June 30. 1882, were ~ follows: From
customs. 1920 410 730 20; from internal revenue
SAG 4g7 595 10; from sales of public lands, Sl-
1853 40 81; from tax on circulation and deposits
Of national banks. IS 956 79l as; from repayment
OF interest by Pacific railway companies, $780,
554 81 from sinking fund for Pacific railway
companies, S796,271 ~; from customs, fees, fines,
penalties etc S134 1874 800; from fees--consuar
letters patent, and iapds-S263 800 81; from pro-
ceeds OF sales of government property, S31, 49,.
$50; from profits on coinage, bullion deposits and
assays, 81 ZIG sos 70; from Indian trust funds,
So 7O5 24322 from deposits by individuals for
enues OF the District Of Columbia, 81 ,1l5, 176 Al
from miscellaneous sources, 50 1888, i45 43; total
ordinary receipts, Si03 1913 26O2S. The or
binary expenditures for the same period were'
For civil expenses S1S 0i2 1856 49, for foreign in
tercourse, 81 ,307, b83 10; for Indians S9,736 747
49, for pensions, SCI, 3i5, 1893 90; for the military
establishment, including river and harbor i'm
provements and arsenas, $4,000, 1871 49, for the
naval l0Cluulnk NtSstlHi
and Improvements st navy yards, Sl5032 0I6 20;
for miscellaneous expenditures, including public
buildings lighthouses and collecting the revenue,
SA 539 237 80; for expenditures on account OF the
District of Columbia, SO $50, b43 81; for interest
on the public debt 81 or BOG 10 Total ordinary
expenditures S257, g81, 43g 81. Leaving a surplus
revenue Of S145 5i3 $40 II, which, with an amount
drawn for the cash balance in the treasury OF
500 737, 694 81, making S166 2Sl 800 90. was APP
piled to the redemption OF bonds for the sinking
fund, SG00 79 100; OF fractional currency for the
sinking fund, $3.50 90; of loan Of July and
August, 1861, S62 572 $50; Of loan Of March, 1868
81 472 800; Of funded loan Of 1881, S37 1874 i50; #
loan Of 1853 81 600; Of loan of February, 1861,
1908 600; of five-twenties Of 1862 So, 100; of five
twenties OF 1864 81 400; Of ive-twenties OF 1865,
$500 Of ten-iortes OF 1864, 1854 55O OF consos of
1865, $50, i50; Of consols Of 1867, S40S, 250i OF
consols of 1868, S14l 400; of Oregon war debt,
S675, 250 Of old demand, compound interest and
other notes, S1S $50; total, S1G6 2S1 sos 90. The
foreign commerce of the United States during the
last fiscal year, including imports and exports OF
merchandise and specie, was AS follows: Exports
merchandise, $3.50, 542, 257 specie, $40 All, 40
total, $3.50 959, 1856 Observation-Disclosures 1924 :
$50 574 specie, S42, Az, AGO. total, s767, ,9dl
Excess of imports over exports OF merchandise,
S25 gO26 S3. This excess IL less than II has been
before for any of the previous six years. as APP
pears by the following Year ended June 30 ex-
cess OF exports over imports OF merchandise
1876, $40 Gi3 4Sl 1877, S151, 1852 09l 1878, 1851,
S1i 234; 1879. S264, 66l $685. 1880, Sl67 6S3, 9l2
1881, $50 7l2, 49, 1889, $3.50, 902, 6S3 During the
year there have been organized III national
banks and of these institutions there are now in
operation 2,269, larger number than ever be-
fore The value OF their notes in active crcula.
ton on July l. 1882 was 1924 656 458. | com.
mend to your attention the secretarys views In
respect to the likelihood of n serious contraction
of this circulation and to the modes by which
that result may in his judgment be ayerted.
THE COINAGE OF SILVER DOLLARS.
In respect to the coinage o; silver dollars and
the retirement OF silver certificates, have seen
nothing to alter but much to confirm the sent
ments to which | gave expression last year A
comparison between the respective amounts oil
silver dollar circulation November l, 1881, and
on November /, 1882, shows slight increase Of n
million and a half of dollars but during the in.
terva there had been in the whole number coined
| an increase Of twenty-six millions OF the one
hundred and twenty-eight millions thus far mint.
ed little more than thirty-five millions are In cir
culation. The mass OF accumulated coin has
grown so great that the vault-room at present
available for storage is scarcely sufficient to con
tain It,. 1t is not apparent why 1t Is desirable to
continue this coinage, now 80 enormously in ex'
cess OF the public demand. As to the silver Ger.
tificates In addition to the grounds which seemed
last year to justify their retirement, may be men
toned the effect which is likely to ensue from the
supply OF gold certificates, for whose issuance
congress recently made provision and which are
now in active circulation
REDUCTION OF TAXATION
You cannot fail to note with interest the dis
cusson by the secretary as to the necessity of pro
vidiDg by legislation some mode OF freeing the
treasury OF an Of assets. In the event that
congress fails to reach an early agreement for thf
| reduction of taxation, heartily approve the sec
retary's recommendation OF immediate and eX
| tensive reductions in the annual revenue of this
| government. II will be remembered that urged
upon the attention of congress at its last session
| the importance OF relieving the industry and en-
| terprise of the country from the pressure OF I'M
necessary taxation. 1t is one of the tritest max
| Inns OF political economy that all taxes are bur
| densome however wisely and'prudenty imposed
and though there have always been among oui
people wide differences of sentiment 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 ac'
cord in the doctrine that only such taxes ought to
be levied as are necessary for wise and econom'
cal administration of the government. or late
| the public revenues have far exceeded that limit,
and unless checked by appropriate legislation
such excess will continue to increase from year u
year. For the fiscal year ended June 30, 1881
| the surplus revenue amounted TO 500, 600, 600
For the fiscal year ended on the 3Oth OF June last
the surplus was more than S145 OOOO 900. The re-
port 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 a large balance applicable to
other reductions OF the public debt. But ! renew
the expression of my conviction, that such rapid
extiDguishment Of the national indebtedness as is
now taking place Is Dy no means n CAUSE lot CON
graduation. 1t is a cause rather for serious ap
| prehension II 1t continues 1t must speedily be
followed by OF the evil results so clearly sci
| forth in the report of the secretary. Either the
surplus must lie idle in the treasury, or the gov
| eminent will be forced to buy at market rates il
| bonds not then redeemable, and which, under
such circumstances, cannot fail to command an
| enormous premium, and the swollen revenues
will be devoted to extIavagant expenditure, which
as experience has taught, Is ever the bane OF ~
overlooking treasury. It was made apparent II
the course OF the animated discussions which thi
question aroused at the last session OF congress
that the policy Of diminishing the revenue by re
| ducing taxation commanded the general appro-
| val of the members of both houses. regret tina
| because Of conflicting views as to the best meth
| DDS by which that policy should be made Iera
| tive none OF its benefits have yet been reaped
| In fufillment Of what deem my constitutions
| duty, but with little hope that can make valu
| able contribution to this vexed question, shall
proceed to intimate briefly my own views in rela
| tiOn TO II;
| ABOLITION OF INTERNAL REVENUE TAXES
| Upon the showing OF our financial condition a
the close of the last fiscal year feel justified II
recommending TO congress the abolition OF in
| ternal revenue taxes except those upon tobacco
| in its various forms and upon distilled spirit
| and fermented liquors, and except also the specia
| tax upon the manufacturers Of and dealers II
| such articles. ! venture now TO suggest that un
less ii shall be ascertained that the probable ex
penditures OF the government for the cominl
| year have been underestimate, all interna
taxes save those which relate to distilled spirit
can be prudently abrogated. Such a course, l
accompanied by simplihcation OF the machiner
Of collection which would then be easy of accom-
| pshment might reasonably be expected to ~