The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-12-05
Total receipts, actual and esti,
Leaving a balance of. 49,.
S39,lSS.25S. SO

d
If the revenue for the fiscal year. which will
end on June 80, 1885, be estimated upon the
basis of existing laws, the Secretary is of the
opinion that for that year the receipts will
exceed by sixty millions the ordinary ex-
penditures, including the amount devoted
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 out
standing which are redeemable at the pleas
ure of the government are the per
cents, amounting to about $30500O 900.
The Ak per cents. amounting to $3.50, 0O0,-
900, and the $137 900, 600 of per cents. are not
payable until 1891 and 1907 respectively If the
surplus shall hereafter be as large as the treas
ury estimates now indicate, the per cent.
bonds may all be redeemed at least four years
before any of the AZ per cents. can be called
in, The latter, at the same rate of accumu
lation OF the surplus, can be paid at ma
turity, and the money requisite for the re-
dempton of the per cents. will be in the
treasury many years before these Obligations
become payable.
There are cogent reasons, however, why
the national Indebtedness should not be hus
rapidly extinguished. Chief among them is
the fact that only by excessive taxation is
such rapdity attainable. In a communion
ton to the Congress at its last session | rec
commended 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 tax
and tariff receipts of the government have
been cut down to the extent of at least $50, =
600, 900 or $50 600 900. While 1 have no
doub that still further reductions may be
wisely made, | do not advise the adoption at
this session OF any measure for large diminu-
ton of the national revenue. The results of
the legislation Of the last session OF the Con-
gress have not as yet become sufficiently APP
parent to justify any radical revision or
sweeping notifications OF existing law. In
the interval which must elapse before the
effects of the acts of March 3, 1888
can be definitely aScertained, a por-
ton, at least, of the surplus
revenues may be wisely applied to the long
neglected duty of rehabilitating our navy
and providing coast defenses for the pro-
lection Of our harbors. This is matter to
which | shall again advert
THE NATToNAL CURRENCY.
Immediately associated with the financial
subject just discussed is the important ques-
ton: What Legislation is needed regarding the
national currency? The aggregate amount OF
bonds now on deposit in the treasury to sup
port the national bank circulation is about
$3.50, 900, 000 Nearly 100000 900 of this
amount consists of 8 per cents, which,
as 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 effect of such
an extensive retirement of the securities
which are the basis of the national bank cir
culation would be such a contraction of tine
volume of currency as to produce grave COM
mercial embarrasSments. How car the dan
ger be obviated? The most elfectual plan,
and one whose adoption at the earliest pos
sibe opportunity 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 become
necessary either to substitute some other
form OF currency in place OF the national
bank notes, or to make important changes in
the laws by which their circulation is now
controlled, In my judgment, the latter