Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1883-12-10

Sl32, ~, 44f.4l, WHICH, Will III aLhoeAo
drawn from the cash balance in the Treas
ury of 81 ,299 ,312,.55, making 1874, 49,
1855 SO, was applied to the redemption of
bonds Tor sinking fund, $44, 850,70 of |
fractional currency for the sinking fund,
and reduction of national debt. 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 $60,00O,OO0 the ordinary |
expenditures, including the amount de- |
voted 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 redeemable |
at the pleasure Of the Government are the |
per cents, amounting to about $685.
900, OOO The four and one-half per cents,
amounting to $3.50, 009, 900, and the S737,-
900, 900 four per cents are not payable I'M
til 1891 and 1907 respectively. If the
surplus shall hereafter be as large as the
Treasury estimates now indicate, the
three per cent. bonds may all be redeemed
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 accumula-
ton of surplus, can be paid at maturity,
| and the moneys requisite for the redemp-
ton Of the four per cents will be in the
Treasury many years before those obliga-
! tions become payable.
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 rapidity attainable. In
communication to the congress at its
last session I recommended that all eX
else taxes be abolished except those relat-
ing to distilled spirits and that substan-
tial reductions also be made in the reven-
ues from customs. In the interval which
must elapse before the effects of the act
of March 3, 1888, can be definitely ascer-
tanned portion at least of the surplus
revenue may be wisely applied to the long
neglected duty Of rehabilitating our navy
and providing coast defences for the pro-
lection of our harbors. This is matter
to which 1 shall again advert
Immediately associated with the finan-
cial subject just discussed is the import
ant question, What legislation is needed
regarding the national currency? The ag-
gregate amount of bonds now on deposit
in the treasury to support the national
bank circulation is about $3.50, 900.
Nearly 5000, 900, 900 Of this amount con-
siSts of three per cents, which, as already
I stated, are payable at the pleasure Of the
Government and are likely to be called in
e within less than four years, unless mean
+ time the surplus revenues shall be dimin
+ ished. The probable effect Of such al
t extensive retirement of the securitle;
S which are the basis Of the national banl
circulation would be such a contraction
S of the volume of the currency as to pro
e duce grave commercial embarrassments
g How can the danger be obviated? The mos
o effectual plan, and one whose adoption a
|
IS shall heartily approve, has already bee
ID indicated. If the revenues of the mex
h four years shall be kept substantial
al commensurate with the expenses, tn
re volume of circulation will not be likely t
l. suffer any material disturbance; but i
Id on the other hand, there shall be gres
E. delay in reducing taxation, it will becom
X necessary either to substitute some othe
It. form of currency in place of the nation;
bank notes or to make important change
n in the laws by which their circulation
G. now controlled. In my judgment, the la
| ter course is far preferable. | CONNER
i'll to your attention the very interesting al
en- thoughtful suggestions upon this subje
er which appear in the secretary's repor
he The objections which he urges against tt
al acceptance of any other secusities tn;
lat the obligations Of the Government itSe
yn as foundation for national bank circul
on ton seem to me insuperable. For avel
we inc the threatened contraction two cours
Ter have been suggested, either Of which
w. probably feasible: One is the issuance
3he new bonds having many years to III
ed bearing a low rate of interest and {
adj changeable upon specified terms for the
to now outstanding. The other cour
i've which commends itself to my own JUG
Ict. ment as the better, is the enactment of
can law repeating the tax on circulation a
hi permitting the banks to issue notes
e a an amount equal to ninety per cent of
cts market value, instead of, as now, the f;
les. value Of their deposited bonds. | ag
the with the secretary in belief that the adj
hi ton of this plan would afford the nee
or sary relief.
pom The trade dollar was coined for the p
ing pose of traffic in countries where sill
ept- passed at its value as ascertained by
n to weight and fineness. 1t never had lie
sup tender quality. Large numbers of tn
that coins entered however into the volume
rate our currency. By common consent tt
the circulation in domestic trade has L
ceased and they have thus become
ions turbing element. They should not be 10
pate er permitted to embarrass our cure
the system. recommend provision for t
ner- reception by the Treasury and the m
my as bullion at small percentage above
! for current market price of silver of like
by ness.
S to The acknowledgement devotes n
are of his report to the consideration, in
S in various aspects, of the relations of
t or Government to the telegraph. Such
nent Election as have been able to give to
this subject since my last annual message
pria- not led me to change the view while
there expressed in dissenting from
sage recommendation of the then postmas
lions general that the government assume
West same control over the telegraph whi
t for has always exercised over the mail.
S in hitting that its authority in the prem
i'm is as ample as has ever been claimed
that it, it would not, in my judgment,
are wise use Of that authority to purchas
stern assume the control of existing teleg
Id by lines or to construct others with q
hiefs of entering into general competition
)rded private enterprise. The objections W
with may be justly urged against eithe
with these projects, and indeed against