Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1883-12-06
REDUCTION OF THE 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 oi
the opinion that for that year the receipts
will exceed 500 900, 900, the ordinary expendi.
lures including the amount devoted to the
sinking fund. Hitherto the surplus, as rap.
idly as it has accumulated, has been devoted
to the reduction of the national debt. As O
result the only bonds now outstanding which
are redeemable at the pleasure of the gov
ernment are the 3 per cents, amounting to
about S3O5, ,0OO, 900. The AZ per cents,
amounting to $3.50, 900 900, and the $737,.
100000 4 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 three
per cent. bonds may all be redeemed at least
four years before any of the four-and-a-half
per cents. can be called in. The latter, at
the same rate of accumulation of surplus,
can be paid at maturity, and the moneys re-
quisite for the redemption of the four per
cents will be in the treasury many years be-
fore those obligations become payable.
REDUCTION OF THE REVENUE.
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 a communica-
ton to Congress as its last session, l recon-
mended that all excise taxes be abolished e1-
cept those relating to distilled spirits, and
that substantial reductions 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
millions or sixty millions of dollars While
I have no doubt that still further re-
duetions may be wisely made. l do not
advise the adoption at this session of any
measures for large diminution of the nation
al revenues. The results of the legislation
of the last session of Congress have not rs yet
become sufficiently apparent to justify any
radical revision or sweeping notifications of
existing law.
In the interval which must elapse before
the effects of the act of March 8, 1888, can be
definitely ascertained, a portion at least Of
the surplus revenues may be wisely applied
to the long neglected duty of rehabilitating
our national navy and providing coast de-
fences for the protection of our harbors.
This is matter towhich shall again advert.
NATIONAL CURRENCY LEGISLATION.
Immediately associated with the financial
subject just discussed is the important ques-
ton, What legislation is needed regarding
the national currency? The aggregate
amount of bonds now on deposit in the
treasury to support the National bank circu-
lation is about $3.50, 900, ,OOo Nearly $780,
0OO, 900 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 in the meantime the surplus reve-
nues 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 q contrac-
ton of the volume of the currency as to pro-
duce grave commercial embarrassments
How can the danger be obviated7 The most
effectual plan and one whose adoption at the
earliest practicable opportunity shall heart
revenues of the next four years shall be
kept substantially commensurate with the
expenses tho volume of circulation will not
be likely to suffer any material dis
turbance, 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 circula-
tion is now controlled. In my judgment the
latter course is far preferable. l commend
to your attention the very interesting and
thoughtful suggestions upon this subject
which appear in the secretary's report
The objections which he urges against the
acceptance of any other securities than the
foundation for National bank circulation
seem to me insuperable.
For averting the threatened contraction
two courses have been suggested, either of
which is probably feasible. One is the issu-
ance of new bonds having many years TO
run, bearing a low rate of interest and ex-
changable upon specified terms for those now
outstanding. The other course, which com
mends itself to my own judgment as the
better, is the enactment of law repeating
the tax on circulation and permitting the
banks to issue notes for an amount equal TO
90 per cent. of the market value, instead of
as now, the face value of their deposited
bonds. l agree with the secretary in the be-
lief that the adoption of this plan would af-
ford the necessary relief.
THE TRADE DOLLAR.
The trade dollar was coined .or the pur.
pose Of traffic in countries where silver
passed at Its value as ascertained by its