The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1883-12-13

If the revenues for the fiscal year which will
end on June 80, 1856, be estimated upon the
opinion that for that year the receipts will ex-
coed by 500. 900, 900 the ordinary expendi-
lures, including the amount devoted to the
sinking fund.- Hitherto the surplus, as rapid
ly as it has accumulated, has been devoted to
the reduction Of the national debt As result,
tho only bonds now outstanding which are re-
deemable at the pleasure Of the government are
tho per cents. amounting to $3O5, 900, 600:
412 per cents, amounting to $25O. DOC, 600;
and the $737 900, 600 per cents are not
payable until 1891 and 1907 respectively. If
the surplus shall hereafter be as large as the
treasury estimates now indicate, the 5 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 matnr-
the redemption of the 1 per cents will
be in the treasury long before these obligations
become payable. There are cogent reasons.
however, why the national indebtedness should
not DO thus rapidly extnguished. Chief
among them is the fact that only by excessive
| taxation is such rapidity attsinable
REDUCING THE REVENUE.
In communication to congress at its 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 have no doubt that still further reduce
tons may be wisely made. 1 do not advise the
! adoption at this session of any measures for a
largo dminution OF the national revenues.
The results of the legislation Of last session Of
congress have not as yet become sufficiently
apparent to Justify any radical revision or
| sweeping notifications OF existing law. III the
:ol \4Ic 0>of~
| of the act of March ), 1888, can be definitely
| ascertained, portion, at least Of this surplus
| revenues may DO wisely applied to the long
! neglected duty of rehabiitating our navy and
providing defenses for the protection of our
| harbors This is a matter TO which shall
| financial subjects just discussed 9 the import
| ant question, What legislation is needed re-
sarding the national currency? The aggregate
amount of bonds now on deposit in the treas
ury to support the national bank circulation is
| about $35O,OOO,OOO; nearly 100000, 900
of this amount consists Of 3 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 she'll be d.
extensive retirement of the securities which
| are the basis of the national bank circulation
would be such contraction Of the volume Of
| the currency az 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 1 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 volume of circulation will not be
likely to suffer sny material disturbance; but
if, 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.
l 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 foundation for national bank
circulation seem 10 me insuperable. For adj
verting the threatened contraction, two courses
have been suggested, either of which is prob
ably feasible. One is tho issuance Of new