The Portland daily press., 1882-12-05
NATIONAL BANKS.

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tions there are now in operation 22G9, larger
number than ever before. The value of their
notes note IN active circulation on July /, 1882 was
$524656,458. I commend to your attention the
oecretary's views in espect to the likelihood of
y serious contraction of this circulation and to
the modes by which that result may, In his
Judgment, be averted
SILVER COINAGE.
In respect to the coinage of silver dollars
ana the retirement of silver certificates, L have
seen nothing to alter but much to confirm the
sentiments to which I gave expression last
year. A comparison between the respective
amounts OF silver dollar circulation on Novem-
Der LIST, 1881, and on November 1st, 1882, shows
Q slight increase of million and half of dol
iArs, nut during the interval there had been in
Ine whole number coined an increase of $780,
oOO,000. or the $12S, 100000 thus far minted
nttle more than $35, 900 in circulation.
Ihe mass of accumulated coin has grown so
great that the vault room at present available |
IS scarcely sufficient to contain it. 1t is not |
apparent why it is desirable to continue this |
coinage now SO enormously in excess of the
pnblic demand; AS to the silver certificates,
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 issu-
ance Congress recently made provision, and
which are now in active circulation.
REDUCTION OF TAXATION.
You cannot fail to note with interest the dis
providing 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 reduction of taxation heartily approve |
OF the Secretary's recommendation of inn
mediate and extensive reductions in the an |
nual revenues of the COVER nment 1t will |
de remembered that urged upon the atten-
tion of Congress at its last session the i'm
portance of relieving the industry and enter
prise of the country from the pressure of un-
n4CeSSArV taX4t1OD. frifnct
maxims of political economy that all taxes are |
burdensome, however wisely and prudently |
imposed, and though there have always been
among people wide differences of senti-
ment as to the lest methods Of raising the |
national revenues, and indeed as to the princi- |
pies 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 wise and econom-
ical administration of the government. OF
late the public revenue has far exceeded that
limit Unless checked by appropriate legsla-
tion such excess will contipue to increase from
year to year.
For the fiscal year ended June 80, 1881, the
surplus revenue amounted to one hundred
million dollars. For the fiscal year ended on |
the Both of June last the surplus was more
than one hundred and forty-five millions. 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 bal ance |
applicable to other reductions of the public debt |
but renew the expression of my conviction |
that such rapid extinguishment of the national |
Indebtedness is now taking place is by no |
means cause for congratulation. 1t is a cause |
rather for serious apprehension. Ii it contin- |
ues it must speedily be followed by one of the |
evil results so clearly set forth in the report of
the Secretary. Either the surplus must be idle |
in the treasury or the government Will be fore
ed to buy at market rates its bonds not then |
redeemable, and which under such circumstan-
pac fQi tn an
MUM, or the swollen revenues will be devot- |
ed to extravagant expenditure, which our ex- |
perience has taught is ever the bane of an over |
flowing treasury
1t was made apparent in the course of the |
animated discussion which this question |
aroused at the last session of Congress that the
policy of diminishing the revenue by reducing |
taxation commanded the general approval of |
the members of both houses I regret that be- |
cause of conflicting views as to the best meth |
DDS by which that policy should be made oper- |
alive, none of its benefits has yet been reaped. |
In my ful6llment of what deem my consti- |
tutional duty, but with little hope / can make |
valuable contribution to this vexed question, |
shall proceed to intimate briefly my own views |
in relation to it.
INTERNAL REVENUE TAXES.
Upon the showing of our financial condition |
at the close of the last fiscal year l felt just- |
fled in recommending to Congress the abol- |
ton Of internal revenue taxes except those
distilled spirits and fermented liquors and |
except also the special tax upon the manu-
facturers and dealers in such articles.
l venture now to suggest that unless it shall |
be ascertained that the probable expenditures
of the government for the coming year have
been under-estimated, internal revenue taxes
save those which relate to distilled spirits, can
pe prudently abrogated.
Such course, if accompanied by a simpli- |
fication of the machinery Of collection which
would then be easy of accomp plishment, might |
reasonably be expected to result in diminish
ing the cost of such collection by at least $2,-
100000 and in the retirement from office of |
from 1900 TO 1000 persons.
The system OF excise duties has never COM
mended itself to the favor of the American
people, aid has never been resorted to except |
for supplying deficiencies in the
treasury when by reason of special exigencies |
the duties on imports have proved inadequte
for the needs of the government.
The sentiment OF the country doubtless de-
mands that the present excise tax shall be |
abolished as soon as such course can safely be /
pursued Ii seems to me, however, for va
r1ous reasons SO sweeping a measure as the |
total abolition of internal taxes would for
the present be an unwise step. Two of these |
reasons are deserving Of special mention: tirst
1t is by no means clear that even if the existing
system OF duties on imports is continued with |
out modification, these duties alone will yield |
sufficient revenue for all the needs of the gov
ernment. Ii is estimated that $100, 100000 |
ing year and It may be well doubled whether
the maximum annual demand for that object |
has yet been reached. Uncertainty uBon this |
question would alone justify in my judgm ent |
the retention for the present of that portion
of the system of internal revenue which is |
the least Objectionable to the people; second |
total abolrion of the tax would almost in
evitably prove serious if not an insurmount-
able obstacle to thorough revision of the tar
iff and to any considerable reduction in ina
port duies.
THE TARIFF.
The present tariff system is in many re-
spects unju 1t makes unequal distributions |
both of its burdens and it's benefits. This fact |
was practically recognized by a majority |
of each House of Congress in the passage of /
the act creating the tariff commission. The |
report of that commission will be placed be-
fore you at the beginning of this session, and |
will. trust, afford you such information as to |
the condition and prospects of the various ag- |
ricultural, manufacturing, mining and other |
interests OF the country, and contain such sug- |
gestions Tor saluatory revision as will pract- |
caly aid your action upon this important sub |
ject
The revenue from customs for the fiscal year |
ending June 30th, 1879, amounted to $137 0O0,- |
600. 1t has in the three succeeding years |
reached first $1S6, 100000 then $685. 100000, |
and finally. as has been already stated, $780, |
000,000 The income from this source for the |
fiscal year, which will end on Jan. 3Oth, 1888, |
will doubtless be considerably in excess of the |
sum last mentioned. Ii the tax on domestic |
spirits is to be retained it is plain there |
fore that large reduction from |
the customs revenue are entirely feasible. |
While recommending this reduction, I am far |
from advising the abandonment of the policy |
OF SO discriminating in the adjustment of de- |
tails as to afford aid and protection to domestic
labor; but the present system should be SO re-
vised as to equalize the public burden among
all classes and occupations and bring it into |
closer harmony with the present needs of in
d1stry, Without entering into minute detail,
which under present circumstances is quite un-
nece ,sary, recommend an enlargement of the
Tree list SO as to include within it the numerous
articles which yield inconsiderable revenue.
a slmplhcation of the complex and inconsist-
ent schedule of duties upon certain manufac-
lures particularly those on cotton, iron and
steel, and substantial reduction of the duties
upon those articles, and upon sugar, molasses,
SILK and wooden goods. If general revision
OF the tariff should be found to be impractic-
able at this session, express the hope that at
least some of the more conspicuous irregulari-
ties OF the present law may be corrected before
your final adjournment. One of them is spe-
clally referred to by the secretary. In view
OF the recent decision of the Supreme Court,
the necessity of amending the law by which
fh0 hntia a,.l Il - So xtol