The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1883-12-05

are hampered in Turkey and in other east
ern ports by restrictions as to storage and
by onerous taxation. For these mis-
chiefs adequate relief is not al
ways provided by reciprocity treat
les like that with Hawaii, or that lately ne
gotiated with Mexico and now awaiting the
action of the senate. Is it not advisable 20
provide some measure Of equitable retaha-
ton in our relations with governments which
discriminate against our own! If, for ex-
ample, the executive were empowered to ap-
ply to Spanish vessels and cargoes from Cuba
and Porto Rico the same rules of treatment
and scale of penalties for technical faults
which are applied to our vessels and cargoes
in the Antilles, a resort to that course might
not be barren of good results.
The report of the secretary of the treasury
gives full and interesting exhibit of the ii
nancial condition of the country. 1t shows
that the ordinary revenues from all sources,
for the fiscal year ended Juae 81, lSS3,
amounted to sos, PSI, 5Sl IS, whereof there
was received from the customs $2i a, zoo. 1863;
from internal revenue, S.44, 120, 36S. IS; from
sales of public lands, 81 $50, SG4 -; from tax
on circulation and deposits of national banks.
s., Ill COS s.; from profits on the coinage Of
bullion, deposits, and assays, 81, $50, 205lTt
from other sources, ST 1855 $3.50 Total,
$39S, PSI ISL 05 For the same period the or
binary expenditures were, for civil expenses,
S22, ;}43, PSI 76; for foreign intercourse, So
Az, 275 p; for Indians, s., 363, 590.34; for
pensions, $66, 0l2, 1854; for the military e5-
Establishments and alsenals, S4S, JfI, 3S1.93; for
the naval establishment, including vessels
and improvement at naval yard, SIS, 1885,
49,. II; for miscellaneous expenditures, in
GLIDING public buildings, lighthouses and
collecting the revenues, T40, D9S, 49,. -;
for expenditures on account OF
- Irol,,-,,I,:a
interest ON the public debt, SO, 160 49,
total, $2G5, 40S 1874 Leaving a surplus
revenue of S133, $40, 444 Al, which, with an
amount drawn from the cash balance in the
treasury of Sl,2y9, 3l2 55-Sl34, l7S 755. o.
was applied to the redemption of the sinking
fund, and S44, $50, 100 OF fractional currency.
For the sinking fund, SAC, $50 96 of the funded
loan of 1881 were continued at So per cent;
So $50 2jJ Of the loan of July and August,
1861, were continued at 81 peg cent
and $50 594, 60D OF the funded loan OF 1901,
81 AS, $50 of the funded loan Of 1881, $1l9,
$50 Of the lean of February 1861,
SIS 900, Of the loan OF July and August 1861,
S165. 500: d loan OF Aiarth, lst', slI@, S5J; OF
loan of july, 1S,2, 81, go; OF 5-30s OF l@,j3
OaH0: OF 5-30s of 1864, $3.50; of 5-.js OF
1873, %J,535; of 1913 OF 1861 $l33, 800; OF
t,pnFoi, Of 1865, $40, so; Of consols of 1861,
$50, 100; OF consois # 1858, $I.4G5O; of Ore
g'bI WIZ iit-6f's <o,lSvt Va ttt I'LL
Gates, SiU9, 100; of Old demand compound
interest ami other notes, Sl33JO. Total,
$t3t IS 100 SO.
There are Cogent reasons, however; why
the national indebtedness should not be thus
rapidly extinguished Chief among them is
the fact that only by excessive taxation is
such IGpiditv attainable In a communica-
ton to the congress, at its last session, l
recommended that all excessive taxes be
abolished, except those relating to distilled
spirits, and that substantial reductions be
also made in the revenues from customs.
A statute has since been enacted 10y
which the annual tax and tariff receipts of
the government have been cut down to the
extent OF at least $50, 600, 600 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
diminution of the national revenues. The re-
suits of the legislation of the last session Of
congress have not rs yet become sufficiently
apparent to justify any radical revision or
sweeping notifications OF the existing law
In the interval which must elapse before TIE
effects of the act Of March ,, 1883, can I've
definitely ascertained, a portion at least OF
the surplus revenues may be wisely applied
to the long-poglected duty of rehabiiitating
our nation and providing defenseS for the
protection of our harborS. This is matter
10 which shall again advert.
Immediately associated with the financial
subject Just discussed is the important ques-
ton, What legislation is needed regarding
the national currency. The aggregate Of
bonds now on deposit in the treasury to sup
port the national bank circulation rs about
$3.50 000,00 Nearly 500, Q0T0II5 of fms
amount consists of ; lff}ar cents which. as
before stated, are payable at the pleasure of
the government, and are likely to be called
~ vi thin less thar four years, CnleT,
meantime, the surplus revenues shall be di-
minished The probable effect of such an eX-
tensive retirement of the securities which are
the basis of the national bank circulation,
would he such O contraction of the volume of
the currency as to produce grave commercial
embarrassments. How can the danger be
obviated. The most effeCtual plan, and one
whose adoption at the earliest practical APP
portunity | shall heartily approve, has
already been indicated. If the revenues
of the next four years shall be
kept substantially commensurate with the
expenses, the volume of circulation will not
be likely to suffer any material disturbance.
But if, on the other hand, there shall be
great delay in reducing taxation, it will be-
come necessary either to substitute some
other form of currency in place OF the ma
tional bank notes or to make important
changes in the laws by which their circula-
ton is controlled. In my Judgment the lat
ter course is far preferable.
commend to your attention the very in
terestipg and thoughtful suggestions on this
subject which appears in the secretary's re-
port The objections which he urges against
tine acceptance Of any other securities than
che OBLIGATIONS II the government itself as &
fuundf;t II :uTI3a .nnal t,aIi!; CT collation. seen
to me iu,,lperattC. For ayertEg the threat
ened contraction two courses have been slg
gestal, each OF Which is probably
feasible. One is the issuance of new
bonds having many years to run
bearing a low rate of interest, and exchange
able ugou the specified terms of thost
now o:its anding.
| The oiae course which commends itself Il
my own Judgment as the better, is the enact
ment of law repeating tho tax on circula
| ton, AMI permitting the benks to issue note
! for an amount equal to 30 per cent, of tn
market value, instead Of, as now, the fac,
| value of the deposited bonds. l agree witt
| the secretary in the belief that the adoption
of this plan viii afford the necessary relief
| The revenue for the present fiscal yea
| actual and estimated is as follows; Total re-
| ce:pts: actual for quarter ending Sept 30
! 1855, S319i6, 9li.03; estimated for remaining
! three q a -ters Of year &241 023, 0S2 o..
| The a@lual and estimated expenses for thG
same prri,is are: Actual, for quarter ended
| Sept. % iSo3, sO1, 942, 81; estimated fol
re.aaning three quarters of year, $3.50, 057, ,
| 9G9Gi leaving a balance of $50, 1S3, y
over all e,,t enses.
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 o
the opinion that for that year the receipts
VIII exceed by 500 100000 the ordinary eX
penlitures, including the amoun
devoted to the sinking fund. Hitherto
the surplus, as rapidly as it ha+
accumulated, has been devoted to the reduc
ton of the national debt As a result, the
only bends now outstanding which are re
deemable at the pleasure of the government
are the ) per cents, amounting to about
S3O5, 100000, the ~ per cents, amount
ing to $3.50, 900, aud the $7337, 003 Of
4 per cents, are not payable until 1891 anf
| 1907, respectively. Ii the surplus shall
hereafter he as large as the treasury est
mates now indicate, the 3 per cent. bond
may all lie redeemed at least four years be
fore any of the AZ per cents can be calleC
| in. The latter, at the same rate of accumu
lation Of surplus, can be paid at maturity
and the moneys requisite for the redemption
Of the i per cents. will be il the treasury
many years before those obligations become
payable
| The trade dollar was coined for the pur
pose Of traffic in countries where silver
passed at its value ascertained by its weigh
and fineness 1t never had legal tender