National Republican., 1882-12-05

ant qu estions of law or fact This would give to
trini nma iuapment % aud ward off he Feo,ess ior
re. examination which are now urged upon every
change OF principal officers of departments.
the appointment of three additional general ap-
praisers. The necessity for this addition has long
ossn s ,he Interests Of the , having
tribunal TO determine disputes.
INTERNAL REVENUE.
From the various objects of taxation under the
internal revenue laws the receipts for the fiscal
year ended June 80. 1882. were MS follows:
From spirits..... .S69 SIS, ,40S is
From fermented liquors. 16.l53,y20 AZ
From banks and bankers. ..... 5,253,45S AZ
From adhesive stamps Qncluding
bank check, S2,3lS, ,455.1i; friction
matches, s2272, ,25S; patent medi-
cines, &C., slyIs, ,S9556). .."..."... 1859, 10S 20
From penalties, s,.&c-.................. l99,SSO OF
From collections not otherwise pro.
vided ............................ $3.50 90
Total .l4e523, ,27s 70
The increase of the revenue from spirits during
the last fiscal year was S27l9 4333O the increase
from tobacco III its various from of manufacture
ior the same period was s4536. .99I60 the increase
from iermented liquors was s2,453,6T92l; the in
crease of revenue from taxes on banks and bank.
ers was 81 49 $50 O the total increase of internal
revenue from all sources was Sll ,203,36l.42.
REDUCTION OF TAXATION.
The Treasury Department was created by act of
Congress, chapter xii, of the year 1889. BY the
second section it was made the duty of the Secre-
larry ito digest und prepare plans Tor the Improve
inent OF the revenue" The word Improvement
meant enhancement The need was for more rev.
enue, and the lack was OF subjects from which it
might be taken. In that sense that duty is now
without care. The times have changed. What now
perpl. xes the Secretary is not wherefrom he may
get revenue and enough for the pressing needs of
government but whereby he shall turn back into
the flow of business the more than enough for
those needs that has been drawn from the people.
There are now i'll the Treasury unused assets to
n large amount, and the daily receipts into the
Treasury from customs and internal revenue tax
alton are about 81, $50 900.
1t Is plain from this, and the statement with
which This report begins of the estimated expen.
ditures for the next rsca year, that the receipts
IRON revenue are, and are likely TO be, in excess
Of the neeos of the government
From the inequality between daily large re-
ceipts and comparatively small daily disburse-
OF the country The collections by government
are taken out of the money market in sums and
al dates which have little or no agreement with
to II with the natural movement of money,
and are returned to 1t with the same iuadaptation
10 commercial or financial requirements. occa-
siUnuly The large disbursements of the govern
mcnt have created II plethora of money; more
frequently It's large anu continued Withdrawals of
money have caused such scarcity of floating
capital as TO check the proper movement OF legiu-
mate business. II Is not only that the amount in
the Treasury is SO much Kept from the use OF COM
munity; the fact becomes an incentive and an aid
to men who for their own ends conspire to keep
from hat use other large sums We have believed
that the laws of the States against primogenture,
the entail of ofestates, and the accumulation of per.
sonal property stood in the way of heaping up
wealth in single hands and gathering in single
hands the power over yer Others that great wealth
itch that by conspirng together they can at will
put and hold hand on near AS much money as
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 govern
ment is an unwilling alder and abettor therein
II has come about that the Treasury Department
is looked to as great, If not chief cause of re-
curing sringencies, and the Treasury is called to
for r4lief. Every Secretary of the Treasury for
years past has had it clearly brought to his mind,
and official expedients have been used to remedy
the evil, Little OF lasting value has been accom-
piished thereby.
There ia no advisable and lawful mode of dis
busing an existing excess of assets but that Of the
stGnlially oftwo principal classes-that payable
AT the pleasure of the government that payable
oflwo kinds-that bearing interest at three and
cent. The latter may not be called in
ing and uncalled. So is the law OF its creation
OF THE former there are outstanding and uncalled
over 7000O,O00. The Interpretation put by the
department. upon the various laws out of which
that debt has arisen, equireS that call for 1t for
payment must fix for the maturity and for the
cessation OF interest date three months of. This
somewhat hampers the department in so making
calls as TO keep up timely succession. For calls
at three months off there must either be the funds
in hand therefor at the time when the call Is
made, or there must be reliance upon the proba-
BILE prospective receipts. 10 wait before making
a call until the funds are In fact in hand would be
to Increase the evil of which l am speaking. 10
call IN reliance upon receipts to come needs eau
ton lest by changes in business currents or bisi-
ness prosperity they may be lessened, and thus
department cannot with prudence work
in this matter up to what may turn out
to be its full ability. Whether the 8 per cent.
length ll.Ii
has not yet been determined, Nor is a call al
ways. effectual in bringing In the debt for pay
ment, The monthly statements OF the public debt
show that of matured obligations on which In
terest has ceased there outstanding eleven
millions and Il half some of 1t from the year 1887
Doubtless some of this has been lost or destroyed
and will never be brought for payment. But
bonds which are in late calls come in slowly
Thus OF the calls preceding the last all Of whicn
have been some days payable at option of holders
without rebate of interest, and which were, In ALL
for S55O00OOO there is outstanding S35, 700 and
over
bonds of the other principal class are of several
kinds, nll layable at a future date, and all are
now at u high premium in the market If it
were good policy for the department. to buy these
at their premium, it could by SO doing easily free
The Treasury from its excess of assets. Various
causes put these premiums at height almost
uuexampled. 1t is true that capitalists may buy
them now and they will, If the present state Of
things continues, by the time they TALL due and
payable, and are paid to them at their face have
realized some interest upon the purchase price.
At the present premium on most If not on all
OF them that will be short of three per cent Cal
culations snow that at these. .premiumsa purchase
will not have yielded at the end of their term
three per cent. OH the money paid for them. The
government by the purchase OF them might in
effect take un equal profit. But 1t can save to it.
self three ana half per cent. by calling
bonds of that class. Hence, do not per-
ceiye how Secretary could justify him
self to the country at large, in paying the govern
ment debt at ruling premiums, when there is no
requirement of law TO be answered, and no con-
venience or pressing need of the government to be
met; unless there is great emergency, and gen.
eral financial disaster Is threatened, which only
extreme measures OF governmental interference
can turn aside 1t is true that this department
has heretofore and as late as March 80, 1881, pur-
chased bonds and paid for them the face value
and premium thereon. The purchases on that
day were over S5,250,O00, and The premium paid
near 900. But the purchase was Tor the sink
ing-fund, and the law of that fund required q
purchase, ana there were no government bonds
redeemable at pleasure 10 the payment OF which
years there were large and continued purchases
OF bonds at premium, but they went hand
In hand with sales OF gold at a greater
premium, and the government made o
profit by the transaction, and then too, was for
time the requirement. of the sinking fund, and
there were no bonds payment OF which might be
made IN inpituDl.
The anticipation of payment OF called bond:
named in the call rests upon different basis.
| prepayment of interest upon the public debt 1;
sanctioned by xpress provision oflaw. (See reso-
| luton No. %, of March, 1864, and United States
Revised Statutes, $685. A reference to the de-
bates in Congress when that resolution was undeI
| discussion, shows that the motive for the adop.
| tion OF II was that the Treasury Department
| might ut any time break tightness In the money
market by putting out money idle In its vaults
| The power thus given has of late been used
| for that purpose. Though this does give gaiI
70 the holders OF the bonds, II puts no loss upoI
| the government The Treasury uses for the pre-
payment money that II needs not for use I'm othaI