The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1883-12-13
FINANCE.
Abstract Of the Report of the Secretary Of
the Treasury.

the Treasury.
The report of Secretary Folger for the fiscal
year ending June 80 1883, shows that the ordi,
were AZ follows: Customs, $2l4 7O6, i9f, internal
revenue, $l44, 72o,369: sales OF public lands.
Ss5 d sots sss orSnaap es
penses Civil and miscellaneous, Sos. ,022;
War.department, t48,91l 1888; Navy department,
ciS'S7I; interest on public debt, $50, leo isa:
total, 800. 4os,l3s, leaving a surplus rev.
enue of $s2,s79.iA4. This Is tT.Soo,Oo more
would amount TO in his last annual report.
Compared with the previous fiscal year, the re-
ceipts for 1883 have decreased, In customs
direct tax, s5i $3.50, and In IN scellaneous, $685.
Gas. They have increased IN sales OF public
lands So. 2o2, 724. Total decrease, $l2,e64,367.
year before of s752e,6T The expenditures OF
the War department increased s5,40o,0oo; for
the Navy department. $4,000. and for pen
sons nearly So 000, 0eO while the interest on the
public debt decreased almost SO. COG, 600.
Since the last annual report the act OF March
8, 1883, diminished the sources OF internal reve-
nue. and changed the tariff law, 80 that the
estimate made year ago must be entirely re-
vised. Then the receipts expected from inter-
nal revenue were 5.0Oo,oOo. Now the estf-
mated revenue is $120,O0O.O0o. The receipts
from customs have fallen of proportionately.
For the four months ending Nov. 1, the total re-
ceipts were $l24 1868, 965: for the corresponding
months of last year they were $i14s52 1882 For
the same periods the expenditures were ss9-
91s.200 and So, 706,661. By the payment of
$207 100000 of the public debt, the charge for
interest will be greatly reduced 1t is probable
that the receipts will be about s350.0O0,OOO for
the fiscal year 1884, while the expenditures will
amount to s265 ,000,0 00 leaving surplus or
sS5 0o0, 900 over and above the sinking fund.
During the last fiscal year the bonds retired
amounted to $l34, Oo975O Since then s3s, 374 900
more have been called. OF this last sum, -, Ooo-
600 has been met already, and is included in the
$38374, 900.
The Secretary again calls the attention of Con-
gress TO the fact that the receipts OF the Govern
ment greatly in excess of it's needs. The
dangers Of this large surplus to the money
market will he dwelt upon and the Secretary
will say that there is no method OF disbursing
this surplus except by payment of the public
debt. Payment of the public debt, however, is
nowinjurious to the national banking system.
When all the outstanding calls are paid, the
per cents will be reduced to the neighborhood
of $3.50 900 900, and of this the banks hold about
$500 900. If payment of the public debt is to
be permitted to go on, even this year, as 1t has
during the last fiscal year. the existence OF
good many national banks Is threatened, and
this means a sensible contraction OF the cur
! rency. If the income OF the Government
remains as1tt is, the Secretary OF the Treasury
will call atleast $50,000,000 more OF bonds be-
fore the end of the fiscal year. and by the end of
the fiscal year 1885 more than half the banks
holding 3's as security for circulation would
have to replace them with As at a great pre-
MUM CT retire their circulation, and thus con-
tract the currency.
In discussing the mode Of reducing the reve-
the internal-revenue tax. 1t is estimated that
this tax will yield under the present law $780,
900, and this is at least $35 100000 more
than the revenue can be decreased. decrease
of the tax on tobacco and spirits does not
necessarily argue a smaller revenue, as expert
ence has often found. Therefore, the Secretary
recommends still further reduction of customs
duties, after proper inquiry shall have devel-
oped what articles can best stand the reduction.
Sugar, at least, the Secretary thinks, ought to
pay q much smaller duty than 1t now does The
Secretary is embarrassed by the new law which
has so recently been passed that it would
seem proper to give It a further trial
before endeavoring to change it, but
it has not accomplished the pur-
poses which he desired to effect when he last
year recommended that reduction of revenue
be made by a revision of the tariff that should
| reduce the duties on sugar, iron, steel, woolens
and wool, cottons and raw material. Therefore
these recommendations must be substantially
renewed, for the dangers OF large surplus are
even more threatening than they were before
the passage of the Tariff act.
The Secretary calls attention to the sugges-
lions made by Comptroller Knox, that the rate
of issue Of national bank notes be increased to
30 per cent. of the market value OF the bonds,
and that the 49, be refunded in 3's, the holders
receiving a premium in satisfaction for the
resultant loss Of interest.