Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1882-12-05
DEPARTMENT REPORTS.
SEC. roLGERs VIEWS AT LkkGFH


The enormous Surplus Threatening Popular
Prosperiiy-Somo OF the Orhor
EepOrts.
Tho telegrapllic summary Of the presi-
dents message printed in the ISrELL1-
eENcER yesterday presented its most sa.
lient points. 1t also briefly stated the
leading features Of the department re-
ports. But the annual budget of the sec.
retary Of the treasury, By far the most
important Of these annual documents, has
some points worthy OF popular attention,
and copious extracts are herewith pub
lished from Mr.. Folger's annual report
Tho Secretary OF the Treasury Recon-
nendntiODs.
There are now in the treasury unused
assets to a large amount, and tho daily
receipts into the treasury from customs
and internal revenue taxation arc about a
million and quarter. 1t is plain from
this, and the statement with which this
report begins of the estimated expendi-
lures for the next fiscal year, that the re-
ceipts from revenue are, and are likely to
be, in excess Of the needs of the govern
ment.
From the inequality between daily
largo receipts and comparatively small
daily disbursements there comes an evil
effect upon tho business of the country.
| The collections by government arc taken
out of the money market in sums and st
dates which have little or no agreement
| with tho natural movement of mousy, and
are returned to it with the same inadapta-
ton to commercial or financial require
ments. Occasionally the largo disburse-
men:s Of tho government l.vG created I
| plethora of money more frequently its
large and continued Withdrawals Of money
have caused such scarcity oi floating
capital as to check the proper movement
of legitimate business. 1t is not only that
the amount in the treasury is SO much
kept from the uso of community tho
fact becomes an incentive and an aid to
men who, for their own ends, conspire to
keep from that use other large sums. We
have believed that the laws of the states
against primogeniture, the entail Of cs-
tates, and tho accumulation of personal
property, stood in tho way of heaping up
wealth in single hands, and gathering ia
single hands tho power over others that
great wealth gives. But so it is that to
day there are men SO rich that, by con-
spring together, they can at will put and
hold hand on near as much money as gov.
ernment can lay hand to, save by the use
of its credit. The power thus had is used
from time to time. 1t results, that violent
and sudden contractionS and expansions
atflict the business community, and the
government is an unwilling alder and
abettor therein. It has como about thai
J the treasury department is looked to IS a
/ 80 s-r ~c
stringercies. and the treasury is called to
J for relief. Every secretary of the treasury
for years past has had it brought clearly
been used to remedy tho evil. Little
of lasting value has been accomplished
thereby.
, There is no advisable and lawful modt
Of disbursing an existing excess of assets
, but that of the payment of the public
debt. The debt is substantially of tw'
principal kinds-that payable at the plea
sure of the government, that payable at
, fixed date in the future. Tho former i
I also of two kinds-that bearing interest a
three and half per cent. and that at thre
per cent. The latter may not be called il
for payment while any Of the former j
outstanding and uncalled. So is the Law
of its creation.
OF the folmer there are outstanding ant
) uncalled over seventy millions. The in
:. terpretation put by the department upo
the various laws out of which that deb
has arisen, requires that 4 call for i. 70
t payment must fix for the maturity and 70
Q the cessation OF interest date thre
a months off. This somewhat hampers tn
department in so making calls rs to kee]
up timely succession. For calls at thre
q months off there must either be the fund
0 | in hand therefor at tho time the call j
: made, or there must be reliance upon tn
probable prospective receipts.
TO wait before making call until th
Q funds are in fact in hand would be to in
crease the evil Of which am speaking
| TO call in reliance upon receipts to com
needs caution, lest by changes in bushes
currents or business prosperity they nay b
. lessened, and thus embarrassments ensue
. SO that, practically, the department canno
: with prudence work in this matter u
to what may turn out to be its full ability
II Whether the three per cent. bond will le
h quire the same length of call time has no
y yet been determined. Nor is call al
Q ways effcctual in bringing in the debt fO
payment.
The monthly statements Of the publ
debt show that of matured obligations ol
, which interest has ceased there are out
\ \ standing over eleven millions and half
some of it from the year 1887. Doubles
some of this has been lost or destroyed
4 and will never be brought for payment
), But bonds which arc in late calls come il
j slowly. Thus, of tho calls preceding tn
last. all of which have been some day
= payable at option Of holders without re
batc of interest and which were, in all
= for $55, 900, 600, there is outstanding s35,
q 600, 600 and over.
q Bonds of tho other principal class are 0
Q several kinds, all payable at future dat
}. and all are now at high premium in tn
market. If it were good policy for the de
Q partment to buy these at their premium
' it could by SO doing easily free the treas
o ury from its excess of assets. VariOu
1 causes put these premiums at hcigh
h almost unexampled.
Q 1t is true that capitalists may buy then
now, and they will, if the present state Q
things continues, by the time they fal
, due and payable, and are paid to them q
+ their face have realized some interes
' upon the purchase price. At the presen
y premium on most if not all Of them tina
a will be short of three per cent. Calcula
/ tions show that at these premiums a rur
chase will not have yielded at the end o
their term three per cent on the none,
. paid for them.
The government, by the purchase O
; them, might, in effect, take an equa
profit. But it can save to itself three ant
!, a-half per cent. by calling bonds of tina
class. Hence, do not perceive how z