The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-12-05

IOtal expenditures, actual and
timated. So. 25S, 900 900 90
$4,000, 600 90
Estimated amount due the sink
ing fund .....,..........:...., 45,816741 on
Leaving balance of.......... 39,1S3, 1858 %
If the revenue for the fiscal year, which will
end on June 30, 1885, be estimated upon the
basis of existing laws, the Secretary is Of the
opinion that for that year the surplus will ex-
coed sixty millions and ordinary expenditures,
including the amount devoted to the sinking
fund. Hitherto the surplus, as rapidly as It
has accumulated, has been devoted to the re-
duction of the national debt. AS result the
only bonds now outstanding which are redeem
able at the pleasure OF the government are
per cents, amounting to about $305, 600 600.
Four and one-half per cents amounting to $50
million and the 737 millions four per cents~
are not payable until 1891 and 1907 respective-
ly. Ii the surplus shall hereafter be as large
as the treasury estimates now indicate the
three per cent bonds may all be redeemed at
least four years before any Of the four and one
half per cents can be called in. The latter at
the same rate of accumulation of surplus can
be paid at maturity and the moneys requisite
for the redemption Of the four per cents will
Dc IN the treasury many years before those
obligations become payable. There are coQent
reasons however why the national indebted
ness should not be thus rapidly extinguished.
Chief among them is the fact that only by ex-
cessive taxation is such rapidity attainable.
REDUCTION OF TAXATION.
In a communication to the Congress at ii.
last session l recommend that all excise taxes
be abolished except those relating to distilled
spirits and that substantial reductions also be
made in the revenues from customs A
statute has since been enacted by which the
annual taxes and tariff receipts Of the govern
ment have been cut down to the extent Of at
least fifty or sixty million of dollars. While
have no doubt that still further reduction NAV
a rufo olxrs aIo 10, IL.
this session OF any measures for large
diminution OF the national revenues The re-
suits OF the legislation Of the last session Of the
congress have not as yet become sufficiently
apparent TO justify any radical revision or
sweeping notifications of the existing law.
In the interval which must elapse before the
effects OF the act of March 8, 1888, can be
definitely ascertained portion at least of the
surplus revenues may be wisely applied to the
long neglected duty OF rehabilitating our navy
and providing coast defences for the protec-
tion of our harbors. This is a matter to which
shall again advert.
NATIONAL BANK CURRENCY.
Immediately associated with the financial
subject just discussed is the important question
what legislotion is needed regarding The ma
tional currency. The aggregate amount of
bonds now on deposit in the Treasury to sup
$350,000,000. Nearly S250,0OO,OO0 of this
amount consists OF three per cents which. a.
already stated, are payable at the pleasure of
the government and are likely to be called In
within less than four years unless, meantime,
the surplus revenue shall be diminished. The
probable eject of such an extreme retirenent
OF the securities which are the basis of the ma
tional bank circulation would be such a con-
traction OF the volume OF the currencv az To
produce gravel commercial embarrassments.
How can the danger be obviated? The most
efectual plan and one whose adoption at tha
earliest practicable Opportunity shall heartily
approve has already been indicated. If the
revenues OF the next four years shall be kent
substantially commensurate with the expen-
ses, the volume sof circulation will not be like
ly TO suffer any material disturbance, but If.
on the other hand, there shall be great delav
In retiring taxation, 1t will become necessary
either to substitute some other form of curren-
cy in place of the national bank notes or to
make important changes in the laws by which
their circulation is now controlled. In nv
opinion the latter course Is far preferable. /
commend to your attention the very interes-
ting and thoughtful suggestion upon this sub
lect which appears in the kSecretary's report
The objections which he urges against the ac-
ceptance OF any other securities than the
obligation of the government itself
LoI nauopM Dank circulation seem to
me lnsuPerable. For averting the Threatened
contraction, two courses have been sungestaJ
either of which is probably feasible One ;s
the issuance OF new bonds having many wears
to run, bearing low rate of interest and ex-
outstanding. The other course, which COM
mends itself to my own judgment as the bet
ter, is the enactment Of law repeating the tar
on circulation and permitting the banks to is
sue notes for an amount equal TO 90 per cant
of the market value, instead Of, as now. the
face value of their deposited ponds / agree
with the Secretary in the belief that the adopt-
ion OF this plan would afford the necessary re-
lief.
THE TRADE DOLLAR.
The trade dollar was coined for the purpose
OF traffic In countries wheresilver passed at its
value as ascertained by its weight and fine
ness. 1t never had a legal tender quality.
Large numbers Of these have entered however
into the volume OF our currency. By common
consent their circulation in domestic trade has
now ceased, and they have thus become a dis.
turbng element They should not be longer
permitted to embarrass our currency systene
recommend that provision be made for their
reception by the treasury and the mintE as huI
lion at a small per centage above the current
market price Of silver of like fneness.
CONSOLIDATION OF CUSTOMS DISTRICTS
The Secretary of the Treasury advises q CON
solldation OF certain of the customs districts
OF tne country. and suggests that the President
Dc vested with such power in relation thereto
as Is now given him as to collectors OF internal
revenue by section 3141 OF the Revised
Statutes The statistics on this subject which
are contained in his report, furnish of them
selves a strong argument in defense OF his
views At the adjournment of Congress the
number of internal revenue collection districts
was 1876. By an executive order dated June
%, 1888, l directed that certain of these dis
tricts be consolidated. The result has been a
CONTINUED ON FOURTH RAsE.l