The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1883-12-05

Improve
n msnts az ine 4.1oe,o9o.6o 12.3Oo'7OO31
For expcndl-
lures on ac-
count Of the
District or ~, raa 20
Columbia -. l;loo'ooo'si
For interest OF
a., dah, puo,i.'o.s14.7s7 2o79o 3o,7o2,7o204
rS SEne SrdI" slsoo579o967
Total receipts. actual and esti- o ooo ooo oo
mated ........,.........''. 800, sof''"V"'V'" v"
Total expenditures. actual ana oro ooo ooo M
estimated. ........'..''' ''''''''
s5,OO0,000 90
Estimated amount due the sinK- ..o,c-Ar ~
ing Fmd..."....'.'..' '''''''' y. -
Leaving balance of.....s 39'lsS'Sos 30
n tbo revenue for the fiscal year which
will end on June 80, 1887, be estimated
unon fine basis OF existing laws, the Secre-
torv is OF the opinion that for that year The
receipts will exceed by S60.000.00O the ordl-
nary expenditures, intending the amount
devoted to the Sinking Fund.
THE SURPLUS.
Hitherto the surplus, as rapidly as il has
accumulated. has been devoted to the re-
duction OF the national debt. As result
the only bonds now outstanding which
arc rcdeemable at the pleasure OF the Gov
eminent are the per cents, amounting TO
about 1905, 100000. The q per cents,
amounting 10 S2j0,000, 600, and the SI3I.-
| 600 per cents, are not payable until lS9l
and 1879 respectively. Ii the surplus shali
I hereafter be as large rs the Treasury
estimates now indicate the , per cent.
bonds may all be redeemed at least four
wears before any OF the 43 per cents
| can be called in. The latter, ut the same
rate of accumulation OF surplus, can DC
paid n: maturity, and the moneys requisite
! for the redemption OF the per cents WIN
/ he i'm the Treasury many years before these
obligations become payable. There are co.
rent reasons, however, why the national
! indebtedness should not be mus rap
Idly cXtinguished. Chief among them
| IL the fact that only by excessive taxation
is such rapidity attainable. In a commune
! cation to the Congress az ITS last session l
recommended that all excise taxes be
abolished except those relating TO distilled
spirits, and that substantial reduction be
! also 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 eX-
tent Of at least fifty or sixty millions OF
dollars. While | have no doubt that still
| further reduction may be wisely made. |
do not advise the adoption at this session OF
any measures for large diminuuOn of the
national revenues. The results OF the legis-
! latiOn OF the last session OF the Congress
have not as yet become sufficiently appa-
rent to Justify any radical revision or
sweeping notifications Of existing laws. In
the interval which must elapse before the
effects OF the act OF March 3, 1888. can be
definitely aScertained, a portion at least Of
! the surplus revenues may be wisely applied
to the long.neglected duty Of rchabilitating
our navy and providing coast defenceS for
| the protection Of our harbOrS. This is a
matter to which | shall again advert.
Immediately associated with the financial
subject Just discussed is the important
question What legislation is needed re-
! garding the national currency? The
aggregate amount Of bonds now
on deposit in the Treasury to sup
port the natlonal-bank circulation is
about $3.50, 600. Nearly S20O,O0o,OOO
! 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 mem time the surplus revenues
shall be diminished. The probable effect
OF such an extensive retirement OF the Sc
curities which are the basis OF the national
bank circulation would be such contrac-
ton of the volume OF the currency rs TO
produce grave commercial ombarrass-
ments. How can the danger be obyiated
The most ctfcctral plan. and one whose
adoption at the earliest practicable
opportunity | shall heartily approve.
has already been indicated. Ii the
revenues OF the next four years
shall be kept substantially commensurate
with the expenses, the volume OF circula-
ton will not be likely TO suffer any mate
rial disturbance. But ii. on the other hand,
| there shall be great delay in reducing tax
alton, il will become necessary either 10
substitute some other form OF currency In
place OF the national bank or to make i'm
portant changes in laws by which their cir
culation is not controlled. In my iudg-
ment the latter course is far preferable. ]
commend to your attention the very inter-
esting and thoughtful suggestions upon
tins subject which appear in the Secre-
tary's report. The objections which he
urges against the acceptance OF any other
securities than the obligations OF the Gov
ernment itself as a foundation for national
! bank circulation seem to me in>uperable.
! For avoiding the threatened contraction
two courses have been suggested. either OF
which is probably feasible. one Is the H.
suance OF new bonds having many year,
TO run, bearing low rate OF interest
and eXchangeable upon specified terms
for those now outstanding.
nm, nm ne uorr Al
The other course which commends To
my own Judgment ~ the better Is the en-
actment Of a law repeating the tax on cir
culation and permitting the banks TO issue
notes for an amount equal to ninety per
cert. OF the market value instead Of, rs now.
the face value of their deposited bonds.
| agree with the Secretary i'm the belief that
the adoption Of this plan would afford the
necessary relief. The trade dollar was
coined for the purpose OF traffic in coun-
tries where silver passed n its value ascer-
tanned by its weight and tneness. II never
had legal-tender quality. Large number,
OF these coins entered, however, into the
volume OF our currency. By common con-
sent their inequlation in domestic trade
has now ceased and they have thus be-
come Il disturbing element. They should
no be longer permitted to embarrasS OH
currency system. | recommend that pro-
vision De made for their reception 10y the
treasury and the minis as bullion at small
percentage above the current market price
OF silver OF like finenesS.
REVENUE DISTRICTS.
The Secretary OF the Treasury advises q
consolidation OF certain OF the customs
districts OF the country. and suggests that
the President be trusted with such power
in relation thereto as i now given him In