Savannah morning news. [volume] (Savannah) 1868-1887, 1882-12-05

amounts of silver dollars in Circulation on
November l, 1881, and on November l, 1882,
shows slight increase of a 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
ana twenty-elght millions thus far
millions are in circulation. The mass
Of accumulated coin has grown so great that
the vault room at present available for stOr-
age Is scarcely sufficient to contain il. 1t is
not apparent why it is desirable to continue
TINS 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 mentioned 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
discussion by the Secretary as 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 reduction of taxation. /
heartily approve the Secretary's recommend
alton of an immediate and extensive reduc-
ton IN an the annual revenues of the govern
ment. IL VIII be remembered that ] urged
upon the attention of Congress at its last
session the importance of relieving the
industry and enterprise Of the country
from the pressure of unnecessary taxa
maXims Of political economy that all taxes are
hurdensome, however wisely and prudently
they are imposed, and though there have al
ways been among our people wide differences
of sentiments 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 a wise and eco
nOmical administration of the government.
OF late the public revenues have iar exceeded
4 au1...
legislation, such excess will continue to in
crease from year to year.
For the fiscal year ended June 30, 1881. the
surplus revenue amounted to one hundred
millions of dollars. For the fiscal year ending
on the 30th of June last the surplus was more
than one hundred and fOrty-five millions.
The report of the secretary shows what dispO-
sltlOn 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 eXtinguishment of the national indebt-
edness as IS now taking place is by no means
cause for cOngPatulatlOn. 1t is Il cause rather
for serious apprehension. If il continues il
must speedily be followed by one of the evil
results clearly set forth In the reports of the
Secretary. Either the surplus must lie idle in
the Treasury or the government VIII be forced
To buy at market sales its bonds not then re-
deemable, and which, under such circum-
stances, cannot fail to command an enOr-
be devoted 10 eXtraYagant expenditures,
which experience has taught is ever the bane
of an OverhOWing Treasury. 1t was made
apparent in the course of the animated dis
cussions which this question aroused IN the
last session of Congress that the policy of
diminishing the revenue by reducing taxation
commanded the general approval of the mem
bers of both Houses. | regret that, because of
conflicting views as to the best method by
which that policy should be made operative.
none of its benefits have as yet been reaped.
THE PRESIDENTS VIEWS.
In fufiument of what deem my constitu-
tiOnal duty. but with little hope that | can
make a valuable contribution TO this veXed
question, | snail proceed to intimate briefly
my own views in relation to II upon the show
ing of our financial condition. At the close of
the last fiscal year | felt justified in recon-
mending 10 Congress the abolition of all inter-
nal 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 manufac-
turer and dealers in such articles.
| venture now to suggest that, unless it shall
be ascertalned that the probable expenditures
of the government for the coming wear have
been underestmated. all internal taxes other
than those which relate to distilled spirits can
be prudenily ahrCgated. Such a course. if
accompanied by slmpliiication of the ma
chinery of collection. which would then be
easy of accomplishment, night reasonably be
expected to result in diminishing the cost of
such collection by at least ~. 100000 and in the
persons The system of excise duties has never
commended itself to the favor of the Ameri-
can people, and has never been resorted to
except for Supplying deficiencies IN the Trea-
suTv, when by reason cf special eXigencies the
duties on imports have proved inadequate for
the needs of the government. Tile sentiment
of the country, doubtless demands that the
present excise tax shall be abolished as soon
as such course c6n he safely pursued. 1t
seems to me, however, THAI fOf various reasons
50 sweeping a measure az the total abolition
info 1al tax s~nG ha an
unwise step. Two Of these reasons are deserv-
ing of special mention,
First. 1t is by no means clear that, even if the
existing system OF duties on imports Is cOntln-
ued without modification. those duties alone
will yield sufficient revenue for all the needs of
the government. 1t Is estimated that one
hundred millions of dollars will be required
for pensions during the coming year, and it
NAV well lie doubted whether the maximum
annual demand for thai object has yet been
reached. Uncertainty upon ibis question
would alone Justify, in nay judgment, the re-
tention for the present OF that portion of the
system of internal revenue which Is the least
Objectionable to the people.
Second. 4 total abolition of the excise taxes
would almost inevitably prove serious, if not
an insUTmOuntabe, obstacle to thorough re-
vision OF lbe tariff, and to any considerable
reduction in import duties. t'he present tarn
system j. in many respects Unjust. u makes
unequal distributions both of its btlrdens and
its benefits. This fact WAS practically recOg-
nized by "a majority of each House of Congress
Commission. The report of that commission
will he placed before you at the beginning of
this session, and will, | trust afford such nfOr-
nation as TO the c0nailIOn and prospects of the
various commercial, agricultural, mining and
other interests of the country, and contain
such suggestions for statutory revision as will
practically aid your action upon this import
ant subject.
the iscGi year ended June ~,
ie7a. amounting to si87 100000. 1t has III the
three succeeding years reached, first SlS6,OOO,-
100 then S19S, 1900, and finally, as has been
aIresdv stateG 1920, 100000. The income from
tbis soilrce for the Sscal year which will end
ON June 80. 1888. will doubtless ne considerably
in excess of the sum last mentioned.
If the tax on domestic spirits Is TO be retain
ed il is nIain therefore that large reductions
from the customs revenue are entirely teasl-
BILE While recommending this reduction,
am far from advising the abandonment OF the
policy of discriminating IN the adjustment OF
details rs to afford aid and protection to
domestic labor But the present system should
be so revised as to equalize the public burden
among all classes and occupations, and bring
it into closer harmony with the present needs
Of industry.
ENLARGE THE FREE LIST.
Without entering into minute detail, which
under present circumstances lsqulte unneces-
sarv l recommend an elargement of the free
list so as to include within it the numerous
articles which yield an mcOnsiderable
revenue, slmpllhcatl0n OF the
duties upon certain manufactures, particular
lv those of cotton. iron and steel. and sub
stantial reduction of the duties upon those
articles and upon sugar, molasses, SILK wool
and woOlen goods. IL 2 general revision OF the
tariff should be found tc be lmpractlcable at
this session. | express the hope that at least
some of the more conspicuous Inequalities
Of the present law may be corrected before
your adjournment. One of them is specially
referred to by the Secretary. In view Of
recent decision of the Supreme Court the ne
eessity of amending the law by which the
Dutch standard of color is adopted as the test
of the saccharine strength of sugars Is made
too obvious to require comment.
OUR MILITARY ESTABLISHMENT.
From the report of the Secretary of War, it
appears that the only outbreaks of Indians
hiring the past year occurred in Arizona and
in the southwestern part of New Mexico. /
They were promptly quelled, and the quiet /
which has prevailed in all other parts of the
country has permitted such an addition to the
military force in the region endangered by
he Apaches that there is little reason to ap-
orehend trouble in the future. Those parts
If the Secretarys report which relate to
lur seacoast defenses and their armament
suggest the gravest reflections. Our existing
are nOtOriOusly inadequate. TO
The defense of the great harbors and cities Tor
whose protection they were built The ques-
tiOn of providing an armament suited 10 our
present necessities has been the subject OF
by a board, whose report was
transmitted to Congress at It's last session.
Pending the consideration of that report the
War Department has taken no steps 1or the
or conversion Of any heavy can
that authority and means to begin that I'M
pOrtant work will soon be provided. L invite
the attention of Congress to the proprlety oil
making more adequate appropriation for arm