Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1883-12-11

mated sSii,cOo,oO 0
estimated 25s,OoO.Ooo o.
Remainder s,5,oOoO.uoO "
ing fund l5.sl6siI Of
Leaving Il balance OF s3o,l 3,25s %
IL the revenue for the fiscal year which
will end on June 80, 1885, be estimated
upon the basis of existing laws, the sec.
rotary is of the opinion that for that year
the receipts will exceed sixty millions
the ordinary expenditures, including the
amount devoted to sinking fund. Hith-
erto the surplus as rapidly as it has ac-
cumulated mas been devoted to reduction
of the national debt. As result the
only bonds now outstanding which are
redeemable at the pleasure of government
are per cents, amounting to about
1905, 900, 900. The 4! per cents,
amounting to S2j0,000,O 900, and the
S737, 900 900 per cents, are not pay
able until 1891 and 1907 respectively.
If the surplus shall hereafter be as large
as the treasury estimates now Indicate
the per cent bonds may all be redeem
ed at least four years before any of the
ID per cents can be called in. The lat
ter at the same rate OF accumulation of
surplus can be paid at maturity. and the
moneys requisite for the redemption of
the per cents will be in the treasury
many years before those Obligations be-
come payable. There are cogent reasons,
however, why the national Indebtedness
should not thus be rapidly extinguished.
Chief among them is the fact that only
by excessive taxation is such rspidity at
tainable. In communication 10 the
Congress at its last session recommend
ed that all excise taxes be abolished ex-
cept those relating TO distilled spirits,
and that substantial reductions also be
made in the revenue from customs. A
statute has since been enacted by which
! the annual taxes 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 reduction may be wisely
made | do not advise the adaptation al
this session Of any measure for large
diminution of the national revenues. Inc
results of the legislation OF the last session
of Congress have not as yet become
sufficiently apparent to justify any radI-
cal revision or sweeping notifications OF
existing laws
In the interval which must elapse be-
fore the effects OF the act of Mach 3,
1888, can be definitely ascertained, a
portion at least of the surplus revenues
may be wisely applied to the long neglec-
ted duty of rehabiitating our nation and
providing coast defences for the protec-
ton of our harbors. This is matter TO
which | shall again advert.
Immediately associated with the fnan-
cia subject Just discussed is the impor-
tant question, what legislation is needed
regarding the national currency. The
aggregate amount of bonds now on de-
posit in the treasury to support the ma
iional bank circulation is about $780,
600 900; nearly 5000 900, 900 Of this
amount consists of three per cents which
as already stated are payable at the
pleasure Of the government, and are like
ly 10 be called in within less than four
years-unless meantime the surplus rev.
enue shall be diminished. The probable
effect of such an extensive retirement OF
the securities which are the basis Of the
national bank circulation would be such
contraction of the volume OF the cur
rency as to produce grave commercial EN-
barrassments How can the danger be
obviated: The most effectual plan and
one whose adoption at the earlisest prac-
ticable opportunity, | shall heartily APP
prove, has already been indicated. If
the revenue of the next four years shall
be kept substantially commensurate with
the expenses, the volume Of the c!rcula-
ton will not be likely to suffer any ma
terial disturbance, but if on the other
hand there shall be great delay in return
ing 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. | COM
mend TO your attention the very interest
ing and thoughtful suggestion upon this
subject which appears in the Secretarys
report The objection which he urges
against the acceptance of any other Sc
curi,ies than the obligation of the gov
eminent itself as foundation for nation
al bank circulation seem to me insuper-
able For averting the threatened con-
traction two courses have been suggested,
either of which is probably feasible. One
is the issuance of new bonds having
many years to run, bearing low rate Of
interest and exchangeable upon specified
terms of those now outstanding. The
other course which commends itself to
my own judgment as the better, Is the
enacton of law repeating tie tax on
circulation, and permitting the banks to
issue notes for an amount equal TO 80
per cent of the market value, instead Of
AS now the face value of their deposited
bonds. agree with the secretary in the
belief that the adoption Of this plan
would afford the necessary relief.
The trade dollar was coined for the
purpose of traffic in countries where sill
yer passed at its value as ascertsined by
its weight and faeness. 1t never had a
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