The Mineral argus., 1883-12-20

4 L, per cents. amounting 20 9ZoU, ,UUJ UUU;
and the S737, 600, 900 4 per Ceuts are not
payable until 1891 and 1907 respectively II
the surplus snail hereafter Dc as large as the
treasury estimates now indicate, the > per cent
bonds may all be redeemed at least four years
before any Of The 4l2 per cents can be called
IN. The latter at the same rate OF accumula-
ton Of surplus oan be paid at matur-
iiy, and the moneys requisite Tor
the redemption Of the 4 per cents viii
be in the treasury long before these Obligations
become payable There are cogent reasons,
however, why the national indebtedness should
not be thus rapidly extinguished Chief
among them is the fact that oulv by excessive
taxation il such rapidly attainable.
REDUCING THE REVENUE
In a communication to congress at it's last
session recommended that all excise be abol-
ished except those relating to distilled spirits,
and that a substantial reduction 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 fifty or sixty millions OF dollars
While l have no doubt that still further reduc-
tions may be wisely made, do not advise the
adoption at this session of any measures Tor
large diminution of the national revenues.
The results of the legislation Of last session OF
| congress have not as yet become suthcieEuy
| apparent to Justify any radical revision or
! sweeping notifications of existing law. In the
| interval which must elaDse before the enects
| of the act of March 2, 1888, can be definitely
! ascertained, portion, at least OF TINS surplus
revenues may be wisely applied TO the long
neglected duty of rehabilitating our navy ana
| providing defenses for the protection of our
| harbors. This is matter 10 which shall
| again advert Immediately associated with the
| financial subjects just discussed is the import
ant question, What legislation is needed re-
/ garding the national currency? The aggregate
| amount of bonds now on deposit IN the treas
| urv to support the national bank circulation 10
about $3.50, 200, 900; nearly 5000, 10000
| of this amount consists of 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 revenues shall be di-
| minshed. The probable effect OF such an
| extensive retirement of the securities when
are tho basis of the national bank circulation
| would be such a contraction OF the volume or
the currency to produce grave commercial
| embarrassment How can the danger be obvi-
ated? The most effectual plan, and one
whose adoption at the earliest practical
opportunity shall heartily approve, has
| already been indicated If the reve-
nues Of the next four years shall
kept substantially commensurate with the ex-
penses, the voume On clrculauon VIII not De
likely to suffer any material disturbances; but
it, 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 course is far preferable.
| | commend to your attention the very
| interesting and thoughtful suggestions
| on this subject which appear in
the secretary's report The objections which
he urges against the acceptance of any other
securities than the obligations OF the govern
} ment itself as q foundation for national bank
circulation seem 10 me insuperable For ad-
verting the threatened contraction, two courses
: have been suggested, either of which Is prob
ably feasible. One is the issuance OF new
} bonds having many years to run. bearing .
lou IN oF oyClauQeaDiO
D specified terms for those now outstanding Inc
, other course, which commends Itself to my
; own Judgment as the better, is the enactment
of a law repeating the tax on circulation
: and permitting banks to issue notes
4 for an amount equal to 80 per cent of the mar
q 1et value, instead of, as now, the race value OF
o deposited bonds. / agree with the secretary 10
0 | the belief tha6 tue Afoption OF this plan Will
Q afford the necessary relief. .-sys
y THE TRk1=~ DOLLAR
U The trade dollar was coined for the purposes
q of trade in countries where silver passed at lt
= | value ascertained by its weight and hnness
| 1t never had a legal tender quality. Large
% numbers of these coins entered, how
- ever, into the volume of our currency
!" by common consent Their circulation II
+ domestic trade has now ceased, and they hay'
become disturbing element They should
not longer be permitted to embarrass our cur
~ rency system. | recommend that provision 10
their reception by the treasury and mlnts a
- bullion at small percentage above the cur
81 rent market prices Of silver Of like hneness
CUSTOMS DISTRICTS.
5O The secretary of the treasury advises com
- bination of certain of the customs district
of the cou' try, and suggests that the presiden
be vested with such power in relation theret
3s as is now given him in respect to collec
tors of internal revenue ny Sec
| 3I31 OF the revised statutes. Th'
statistics on this subject, which ar
81 cootained in his report, furnish of themselVe
a strong arpumenti in defense Of his views A
70 the Adjournment of congress the number c
internal revenue collection districts was 126
40 By executive orders dated June 20, 1855,
directed that certain of these districts be con
solidated The result has been reduction o
% one-thlrd their number. which at present is bu
- eighty-tkree.