Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-12-05

| taxation, and the free outward movement of ou
| great food products is in some quarters cogge,
with like impediments. For these mischefs ade
quAte relief is not always provided by recprocit,
treaties, like that with Hawaii, or that lately nego
tiated with Mexico and now awaiting the action o
| the Senate. Is it not advisable to provide somt
| measure of equitable retaliation in our relations
with the Governments which discriminate agains
our own? Ii, for example, the Executive were EN-
powered to apply to Spanish vessels and cargoe.
from Cuba and Porto Rico the same rules of treat.
ment and scale OF penalties for technical fault.
which are applied to vessels and cargoes in the An
titles, resort to that course might not be barren
good results A discretionary authority to forbid
the importation Of articles Of consumption injurou:
to health might be adyantageously exercised in our
dealings with Governments which discriminate
gainst our food products
FINANCES OF THE COUNTRY.
The report OF the Secretary of the Treasury gives
tion Of the country. 1t shows that the ordinary
revenues from all sources for the fiscal year ended
June So 1888 amounted to 1898 2S7 ISL 95, whereof
there WAS received from customs s214, ,706 496 90
from internal revenue, s144 40 36S e5 from sales
OF public lands 1885, s64 40 from tax the cir
culation and deposits of national banks, 50, ILL.,,
00S IS from profits the coinage Of bullion de-
posits and assays, S46O 205 IL from other sources
81, ,S33, ,637 CO. Total, S39S, ,2S7, ,5s1 95 For the
same period the ordinary expenditures were For
civil expenses, S22 ,2S5 76 for foreign inter
course, 81 AS, ,275 24 for Indians, 1882 500 81
for pensions, 500 57s 64 for the military estab
lishments and arsenals, 1882 90 for the naval
establishments, including vessels and improvements
at the navy yards, s15 4S7 II for miscellaneous
expenditures, inc uding public buildings, light
houses and collecting the revenues, S4009S 432 20
for expenditures on account Of the District of Co
lumbia, SO, 81, ,O2S As for interest on the public
debt, s59 l6O 131 25. Total, s265 4OS 137 54-eav-
ing surplus revenue OF SlS2, SO, IA IL.
If the rev enue for the fiscal year which will end
on June 30 1885, be estimated the basis of exist
ing laws, the Secretary is Of the opinion that for
that year the receipts exceed by S6O,0O0,0OO the
ordinary expenditures, including the amount de-
7oted to the sinking fund. Hitherto, the surplus,
as rapidly as it has accumulated, has been devoted
to the reduction of the national debt. AS result,
the only bonds now outstanding, which are redeem
able at the pleasure Of the Government, the
three-per-cents, amounting to about s505, ,OC0 900
the four and one-haf per cents, amounting to $780,
O0o co., and the $751; OOO 900 of -percents are
not payable until 1891 and 1907, respectively II
the surplus shall hereafter be large the Treas
ury estimates now indicate, the three-per-cent
bonds may all be redeemed at least four years before
any of the four and onehalfper-cents can be called
in The latter, at the rate of accumulation OF
he ot he
requisite for the redemption Of the ur-per-cents
will be in the Treasury many years before those
obligations became payable There cogent
reasons, however, why the national Indebtedness
should not be thus rapidly extinguished Chief
among them is the fact that only by excessive taxa
ton is such rapidity attainable In a communica-
ton to Congress at its last session, recommended all
excise taxes be abolished except those relating to
distilled spirits and that substantial reductions also
be made on the revenues from customs. statute
has since been enacted by which the annual tax and
tariff receipts OF the Government have been cut
down to the extent Of at least $50 600 900 or $50
900, 900. While have no doubt that still further
reductions may be wisely made, do not advise the
adoption at this session OF any measure for large
dlmiuu:ion OF the national revenues. The result
of the legislation of the last session of Congress
have not as yet become sufficiently apparent to jus
tfy any radical revision sweeping modification O
the existing law. In the interval which must eaps
before the effects OF the Act II March g. 1883 can b
definitely ascertaned, portion at least of the sur
plus revenues may be wisely applied to the long
neglected defenses for the protection of our harbors
This is a matter to waich | shall again advert
Immediately associated with the financial subjec
just discussed is the important question, What legs
| Iation is needed regarding the national currency
| The aggregate amount of bonds now en- deposit ii
the treasury to support the national bank circula-
tion is about S35O0OOOoO. Nearly $500, ,00o. 900 0
this amount consists of three-per-c which, a.
already stated are payable at the pleasure OF tn,
| Government, and are likely to be called IN within
less than four years, unless meantime the surplus
revenues shall be diminished. The probable effec
of such an extensive retirement Of the securities
which the basis of the national bank circulation
would be such contraction Of the volume OF th'
| currency as to produce grave commercial embar-
rassments How can the danger be obviated? Tn,
most effective plan, and one whose adoption at thu
earliest opportunity shall heartily approve has al
ready been indie lted II the revenues of the mex
with the expenses, the volume Of circulation will
not be likely to suffer any material disturbances
but it, on the other hand there shall be great delay
in reducing tax toD it will become necessary eithe
to substitute some of the other forms of currency
| in place of the national bank notes, to make i'm
portant changes in the law by which their circuIa
ton IS row controlled. In my judgment
the latter course is lar preferable. | com
| mend to your attention the very inie-estin.
and thoughtful suggestions on this subject which
appear in the Secretary $ report. The objections
which he urges against the acceptance Of any othe
securities than obligations Of the Government itsel
as foundation for national hank circulation seen
to me insuperable. For avertng the threatene.
| contractions, two courses hsve been suggested
either Of which is probably feasible Cne is th,
issuance of new bonds, having many years to run
bearing a low rate of interest, and exchangeabl,
upon specified terms with those now outstanding
The ether course, which commei ds itself to my owl
judgment, is the enactment of law ropealing tn,
tax on circulation, and permitting the banks Il
issue notes for amount equal TO so per cent. O
the market value, instead of as now, the face valu,
Of the deposited bonds Iagree with the Secretar,
the ne sessary relief The trade dollar was coined fc
the purpose Of traffic in countries where SILVER
at its value asceri2ned by its weight and fineness
1t never had legal terder quality. Large number
Of these coins entered, however, the volume O
our currtncy bycommon consent. Their circulation
in domestic trade has now ceased, and they having
become a disturbing element. they should not bt
longer permitted 10 embarrass our currency system
and recommend that provision be made for thei
reception by the Treasury and Mints as bullion, Al
a small percentage above the current market price
silver Of like fneness.
CONSOLIDATION OF CUSTOMS DISTRICTS.
The Secretary Of the Treasury advises a consolida
ton of certain Of the customs districts OF the coun
try and suggests that the President be vested with
such power in relation thereto as is now given
him in respect to Collectors of Internal Revenue by
Section 314l Of the Revised Statutes The statistics
Of this subject which contained in his report fur
nish of themselves an argument in defense Of his
views. At the adjournment of Congress the num-
Der OF internal collection districts was 126
By an executive order issued June %, 1888, d.
rected that certain of these districts be consolidated
The result has been a reduction OF one-third of the
number, which az present is but So
THE WAR DEPARTMENT.
From the report of the Secretary OF War it will
be thst in only single instance has there been