The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-12-05


payable debt of the Unien can take up all SUR
plus now existing or likely to arise for four
years come
The only United States bonds which are now
payable at the pleasure of the government are
the three per cents, being $685. 900; those
100000 of four-aud-a-haf per erhts oS Sept.
l, 1891. The 1897. 62o.7oo OF four per cents.
and the 1925, $50 of reruuding certificates
redeemabe July 1, 1907
The estimates for the fiscal year ending June
30, 1884 show surplus revenue of $S5, 00O,-
600 per annum. This IS enough TO pay all the
three per cents. in about three and One-half
years, ana before the close of the fiscal year
ending June 80, 1887. This surplus kept up for
the 70 ur succeeding Years, to Sept. l, 1891.
wond be more than $3.50, 000. 900, or 800, 0o0,-
600 more than enough to pay all the bonds then
falling due The same annual surplus u0tI
July l. 1907, would amount, with the $780,
100000 left after paving the fonr-and-a-hah per
amount of the debt then redeem
able is less than $740,000. 600.
The estimated surplus of S95,000.00o year
would pay the whole amount of the interest
bearing debt in about fifteen years. The only
authority possessed by the Treasury whereby IL
can RESI- tore 10 business the surplus moneys thus
accumulated, is that given to the Secretary by
the act of March 8, 1881, by which he may az
any time apply the surplus money in the Treas
ury, not otherwise appropriated, to the pur-
chase or redemption OF United States bonds.
This can now be done to other than three per
Cents. only by the payment of a large and iii
ereasing premium thereupon. And when 1sIs
considered thai nearly one-half of the interest
bearing QeDt OF the United states Is l6lQ bS Ia
tional banks, State banks, vings-nanks ana
trust companies, AID much other of it by private
trustees and other persons acting in hdueiary
capacity, who have no wish to surrender theso
securities, the difficulty of acting under the pro
vision cited is manifest Moreover, II can
not be assumed that the estimated sur
plus for the current and next years,
under existing laws, will remain at the
same rate IN succeeding years. Tho
the country will add to, rather than take from,
the amount of the surplus as now estimated,
while the decrease of interest the public
debt, and probably of the amount disbursed by
the Pension Bureau as arrears OF pensions are
paid of, should diminish expenditures.
AS general principle, the good of the people
requires that public debt should be paid as
soon as ii may be without greatly onerous taxa
ton, disturbance of business interests which
have been fostered, perhaps stimulated. by pre-
visions of law once expedient. Though of the
public debt resting upon us, II Is TO be consld-
cred that the object for which it in the
main incurred was the good of coming genera
tons, as we'll as of that which incurred IL, and
that it is not unjust to them that, reaping
measure OF the beuefts it purchased, they should
bear their share OF the burden of payment
6ue AS pnr o d Pu9G DEBT e, is
312, 446, $50 i'm exact figuresl, and about $780,.
100000 and about $740,00e,000 of it beyond
our reach for payment, for about nine and sew
enteen years, respectively, and may not be
brought IN by purchase, save at heavy rates OF
premium, even if 1t can by paying those rates,
there is forced upon our attention the question,
how shall heaped-up surplus of public money
be avoided2 The discussion Of this question in
one consistent answer from it now; the views
therein expressed have not been given up.
There ought to be reduction of taxation.
In connection Herewith, it is proper TO cali at
tentlon to the statutes providing for sinKing
fund.
By the statutes re-enacted in sections 1854
and 1896 of United States Revised Statutes, IT
Is provided that the coin paid for duties on i'm
ported goods shall be set apart as special fund
to be applied, first, to payment in coin OF the
terest on the bonds and notes of the UnIted
States; second. to the purchase or payment OF
ne of fan ire Hnh nff he ed
to be made within each fiscal year, and in addI-
ton thereto, an application to the payment of
the public debt OF an amount equal TO the inter
est gu all bonds belonging to the sinking fuila.
as the Secretary of the Treasury shall from time
to time direct: This obligation TO regard the
coin received for duties on imported goods as
pledge for the gradual extinction OF the national
debt has been observed by this department.. and
account kept of the amounts applied from
year to year TO the sinking fund, detailed state
ment of which is submitted with this report
1t is assumed that this obligation, entered into
by the government with its creditors at time
when It's bonds we're regarded of far less value
in the markets of the world than at the present
time, will be held sacred until the debt IS ex-
tinguished. 1t is true that the debt has been
paid much more rapidly than it would have been
applied to its payment, but the obligation still
remains to set apart annu1llythe amount re-
CURED by law to be applied to the extinguiAh-
men5 Of the public debt. The payments from
time to time OF the amounts thus required have
varied somewhat, as the amount of the debt has
unequally varied by more or less rapid pay
ment of it.
The estimate of the sinking fund for the cnr
rent fiscal year is fixed at $45, S16,74l.47. and
year at the rate of about $l,ooj.000
until 1891 1t Is 20 estimated enn ate that an
until then will be required for the sinking fUad.
This will vary according to the amount actually
applied i'll payment beyond the need OF the sink
ing fund
TAX REDUCTION.
I consider that in legislating for the future
the revenues should not be so far reduced as to
prevent the application each year of about $780,
100000 to the sinking fund. Upon the estimate
| of $S5, 900, 900 as the surplus for the current
year, find surplus for that period of nearly
$40, ooo,0 900, not wanted for the regular expead
itures of the government, or for the payment of
the national debt through the sinking fund.
So the question still presses, what legislation is
| necessary to relieve the people Of unnecessary
| taxesa AS elsewhere suggested, 1t should not be
assumed that the surplus in the treasury win be
| consumed by lavish expenditures for objects Of
| doubtful expediepcy or legality, that the
| scheme which has been proclaimed, of exacti1g
| money from the people for the purpose OF re-
| turning it to them by hltering distribution
through State governments, will find any favor
| with Congress or the people
| In the recommendations of the President and
| those of this department, and the action az
! Congress, and in the expression of public opIa-
| ion, there has been substantial concord as 70
| how the needed reduction OF the revenue should
| be brought about. 1t has been generally COZ
4 coded that the internal-revenue taxes, excapt
| those upon spirits, fermented liquors. and anon
! the cir culation of banks, might well be abolish
| ed. There has been difference whether the TAX
| upon tobacco should he abolished modified.
| There we're but few advocates of the immediate
| total abolition of taxes upon spirits ar fet~
/ mented liquors. NY last report said that taxes
| upoa spirits and tobacco, being upon things NOT
| needfal, should be retained rather than those
/ upon the common necessaries of life which, as
| q proposition, is not to lie controVcFted But H
was conceded by ai that a Substantial Reduction
| should be made upon nearly all Imported articles
| subjected to duties.
| To make a start in the proposed reduction of
| revenue from imports, the tariff commission had
| been created. In good faith it undertook the
| work. In its report to Congress 1t said: EARLY
/ in it's elaboration the commission became
1 WINGED that substantial reduction of tariff
| duties is demanded, not by mere indlscrimiG-