Little Falls transcript. [volume] (Little Falls, Morrison County, Minn.) 1876-1894, 1883-12-14

Is
NOT be thus rapidly extinguished Chief
among them is tho fact that only By excessive
taxation is such rapidly attainable IL
s REDUCING THE REVENUE H. 5.=
b In q communication to congress at its last
session recommended that all excise be abol-
ished except those relating to distilled spirits,
and that 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 reduc-
tons may be wisely made, I do not advise the
large diminution of tho 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. In the
interval which must elapse before the effects
ascertained, a portion, at least, OF this surplus
revenues may be wisely applied to the long
neglected duty of rehabilitating our navy and
providing defenses for the protection of our
harbOrs. This is matter to which [ shall
again advers Immediately associated with the
financial subjects ust 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
ury to support the national bank circulation is
about $3.50, OOO,O 900; nearly 5000, 600, 600
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 shall be dl-
minished. The probable effect of such an
extensive retirement of the securities which
are the basis of the national bank circulation
would be such a contraction Of the volume Of
the currency as 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 I 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 any 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 10 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
nlent itself as a foundation for rational bank
circulation seem TO me insuperab1e. For ed
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 g.
low rate of interest and excbangeable upon
specified terms for those now outstanding. Iha
other course, which commends Itself to nv
own judgment as the better, is the enactment
Of a law repeating the tax on circulation
and permitting banks to issue notes
for an amount equal to 90 per cent Of the mar
ket value, instead of, as now, the face value Of
deposited bonds Iagree with the secretary in
tho belief that the adoption of this plan will
afford the necessary relief.
THE TRADE DOLLAR
The trade dollar was coined for the purposes
OF trade in countries where silver passed at it's
value, ascertained by its weight and fnness
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 in
domestic trade has now ceased and they have
become a disturbing clement They should
not longer be permitted to embarrass our cur
rency system. recommend that provision for
their reception by the treasury and minis as
bullion at a small percentage above the cur
rent market prices Of silver Of like ineness.
CUSTOMS DISTRICTS.
The secretary of the treasury advises a COM
binaton OF certain of the customs districts
of the couctry, and suggests that the president
be vested with such power in relation thereto
as is now given him in respect to collec-
tors Of internal revenue by Sec.
3l31 of the revised statutes. The
statistics on this subject, which are
contained in his report, furnish Of themselves
q strong argumentin defense of his views. At
the adjournment Of congress the number of
internal revenue collection districts was 1876.
By executive orders dated June 25, 1883,
directed that certain of these districts be con-
soidated The result has been reduction Of
one third their number, which at present is but