The Carbon advocate. [volume] (Lehighton, Pa.) 1872-1924, 1883-12-08
Presidents Message.

The Presidents message is q long docu-
ment' containing summary and review of
the reports of the several heads of depart.
msnts. It opens by graduating Com
gress upon "the favorable aspect Of the
domestic and foreign affairs ofthis govern
ment and passes through the customary
review Of our friendly relations with the
various foreign powers. Congress is re-
| minded that the operation of the fisheries
articles OF the treaty of Washington will
cease in 1885 and commission upon the
subject is recommended. A REVISION of the
| laws relating ~ immigration is also sug-
| gested, and an increase Of the Consular force
in Central and South America. The Presi-
dent recommends also the modification and
newal Of the Hawaiian treaty. AS to
Chinese immigration hn thinks that Chi.
ne o94icials have violated the law, but
that the Chinese Government will co oper.
tie with the United States to secure its OBJ
servhnce. Most of this portion Of the
messa ge is mere report of the Department
OF State and contains little that is new. The
most imp ,rtant suggestion Is one with re-
'erence TO various commercial restrictions,
tn t il may be "ady ssble ~ proyide some
mea sire of equitable reta aliation in our re-
latinns with governments which discrim-
ma aga LIST our way"
THE FINANCIAL EXHIBIT.
The report of the Secretary Of the Treas
ury gives a full and interesting exhibit ot
the financial condition of the country. II
shows that the ordinary revenues from all
sources for the fiscal year ended June 30,
1888, amounted TO S39S, ,2S7 ISL 80, whereof
there was received from customs, S2l4, ,Z0G,-
406 90; from internal revenue, $l44,720t-
S6S.9S; from sales of public lands, $780,
S64.42; from tax on circulation and deposits
Of national banks, SO i'll ,00S.S5; from prof
its on coinage, bullion deposits and assays,
S4,460, ,205.l7; from other sources, 81 I $780,
637.60; total, $39S,2S7 ,5S1 95. For the
| same period the ordinary expenditures were
| $3.50 ,40S, 1854, leaving surplus revenue
OF Sl32.S74 ,444.4l. For the current fiscal
year the total receipts actual and estimated, !,
are S3I3,O00, ,O00 the total expenditures, ac.
t ial and estimated, $25S,O00 900; deducting
the estimated amount due She sinking fund
| Sl5,Sl6,74l, there will remain a balance OF
$30,Is3,25S.
II the revenue for the fiscal year which
will end on June 80, 1885, be estimated up
on the basis Of existing laws; the Secretary
is of the opinion that for that year the re-
ceipts will exceed by 500 900 900 the ordin-
ary expenditures, 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 outsta anding which arc redeemuble at
the pleasure OF the government are the
three per cents, amounting to about 1906,
000,OOO. The four and one half per cents.
amounting to $3.50, 900 90 0, aud the S737,-
OOO,OOO four per cents, are not payable un-
| til 1891 and 1907 respectively.
TnE SURPLUS.
If the surplus shall hereafter be as large
as the Treasury estimates now indicates,
the three per cent. bonds may all be re-
deemed at least four years before any of
the four and one-half per cents. can be
called in. The latter at the same rate of
accumulation of surplus can be paid at ma
turlty and the moneys requisite for the re-
demption Of the four per cents will be in
the Treasury many years before those obli-
cations become payable. There are cogent
reasons, however. why the national indebt-
| edness should not be thus rapidly cxtin
cuished. Chief among them is the fact
that only by excessive tBxation is such
rapidity attalnable.
In communication to the Congress at its
last session | recommended that all excise
taxes be abolished except those relating to
distilled spirits and that substantial reduc
| tions be also made in 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 at least OF fifty or sixty millions
oi dollars. While | have no doubt that still
further reduction may be wisely made, | do
not advise h. adoption at this session of
any measures for large diminution of the
national revenues. The results of the egis
lnti if,nn nI hal Let .f Al.
have not as yet become sufficiently appar.
ent to justify any very rad cal revision
or sweeping notifications of existing law.
In the interval which must elapse before
the effects of the act Of March 3, 1888, can
be definitely ascertained portion at least
oi tne surplus revenues may be wisely ap-
Piled to the long neglected duty OF rehab-
ilitating our navy and providing coast
defenses for the protection of our harburr,
his is matter TO which | shall again ad
vert.
THE CURRENCY.
Immediately associated with the financial
subject just discussed is the important cues
ton, What legislation is needed regarding
the national currency2 The aggregate
amount oi bonds now on deposit in the
Treasury to support the national bank CIR
culaiion is Obout 1850 900 900. Nearly
! F-"'iNNNbNNV
three per cents. which, as already stated
| are payable at the pleasure of the Govern
ment and are likely to be called IN within
less than four years, unless meantime the
; surplus revenues shall be diminished The
J probable effect OF such an extensive retire.
ment OF the securities which are the basis
! OF the national bunk circulation would be
such contraction OF the volume Of tie cur
rency a. & produce grave commercial EN-.
: barrassments. How can this danger be
obyiated2 The most ellectual plan and one
! whose adoption at the earliest practicable
opportunity | shall heartily approve ha,
D already been indicated. If the revenues o
e the next iUur years shall he kept substan.
p tally commensurate with the expenses, tho
t volume Of circulation will not be likely tt
suffer any material: disturbance. But +, or
q the other hand, there shall be great delay
i In reducing taxation, it will become neces
: sary either to substitute some other form o
y currency in place of the national banl
b notes or TO make important changes in lh,
] laws by which heir circulation is now
e @ nitro I'D. In my judgment the latte
4 course is far preferable. / commend to YOU
r attention the very thoughtful suggestion
II upon this subject which appear in tn,
c Secretary's report. The only objections
II which he urges against the acceptance Of
hul otueI eccuTltles tnan ln9 OOllgatlOns
r the government itself as a foundation fol
5 national bank circulation seem to me in
d superable. For averting the threatene,
i contraction two courses hayo been suggested
q either of which is probably asiblu On,
e 10 the issuance Of new bonds having man,
r years to run, bearing low rate OF interes
= and exchangcable upon specified terms 70
!, those outstanding, The other course, VIII hicl
eommends itself TO my own Judgment a
+ the better, is the enactment of u law repeal
;, ing the tax on circulation and permitting
o the banks TO issue notes for an amour
b equal to ninety per cent. Of the marke
Il value, instead OF as now, the face value o
;. their deposited bonds, agree with tn,
q seeretuTy in the belief that the adoption o
c this plan would afford the necessary relief
u The trade dollar was coined for the pur
pose Of traffic in countries where siye
6 passed at its value as ascertained by il
/ weight and fi1eness. IL never had lega
= tender quality. Large numbers OF thes
= coins entered, however, into the volume o
g our currency. By common consent thei
p circulation in domestic trade has now ceased
o and they have thus become a disturbing
r element. They should not be longer per