The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1883-12-07
s3i3,OOO,OOO 90
25s,OOO,OOO 90
$S5,OOO,OOO 90
45,s16,741 OF



If the revenue for the fiscal year, which will
| end on June %, 1885, be estimated upon the
basis of existing laws, the Secretary is of the
opinion that for that year the receipts will
| penditures, including amount devoted to the
| reduction of the national debt. As result
| the only bonds outstanding which are redeem
able ut the pleasure OF the Government are
the three per cents, amounting to about $780,
100000 The four and one-half per cents,
amounting to $250.OOo.OOO and the SI3 ,0JOO
of four 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 one-half per cents can be
called in. The latter, at the same rate of ac-
emulation of surplus, can be paid at matur-
ity, and the moneys requisite for the redemp-
ton of the four per cents will be in the Treas
ury many years before those obligations be-
come payable. There are cogent reasons,
however. why the national Indebtedness
should not be thus rapidly eXtinguished.
Chief among them is the fact that only by ex-
cessive taxation is such rapidity attainable.
In communication to the Congress at its
last session, recommended that all excise
taxes be abolished except those relating to
distilled spirits and that substantial reduc-
lions also be made in the revenue from Gus
toms. 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 600 or S6000O,0OO. While
/ have no doubt that still further reductions
may be advisedly made, l do not advise the
adoption at this session of any measures for a
large diminutiOn of the national revenues
The results of the legislation of last session
are not as yet become sufficiently apparent
to justify any radical revision or sweeping
modification of the existing law. In the in
terval which must elapse before the effects of
the act of March 3, 1888. can be definitely as
certained, portion, at least, of the surplus
revenues may be easily applied to the long.
neglected duty of rehabilitating our navy and
improving the coast defenses for the protec-
ton of harborS."
This is matter to which will again advert.
Immediately associated with the financial
subject discussed in this important question,
what legislation Is needed regarding the ma
tional currency! The aggregate amount of
bonds now on deposit in the Treasury to sup
port the National Bank circulation is about
$35O,0O0.O0O. Nearly 500 600 of this amount
consists of three per cents, which, as already
stated, are, payable at the pleasure of the Gov
eminent, and are likely to be called in within
less than four years, unless meantime the
surplus revenues shall be diminished. The
probable effect of such an extensive retire
ment of 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 embarrass-
ments. How can the danger be obviated?
The most effectual plan and one whose adop-
ton at the earliest practicable opportunity
shall heartily approve, has already been in
Dictated. II the revenues of the next four
years shall be kept substantially commensu-
rate with the expenses, the volume of circula-
ton will not be likely to suffer any material
disturbance, but on the other hand. if there
shall be great delay in reducing taxation, it
will become necessary either to substitute
some other form of currency in place of Ma
tional Bank notes, or to make important
changes in the laws by whibh their circulation
is now controlled. 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 Secretarys report. The objections which
he urges against the acceptance of any other
securities than the obligations of the Govern
ment itself as a foundation for National Bank
circulation seems to me insuperable. For
averting the threatened contraction 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 for those now outstanding. The
other course which commends itself to my
own judgment as the better one is the enact7f
ment of q law prohibiting the tax on circula-1
tion and permitting the banks to issue notes
for an amount equal to ninety per cent. of the
market value instead of as now the face value
Secretary in the belief that the adoption of
this plan would afford the necessary relief.
The trade dollar, coined for the purpose of
traffic in countries where silver passed at its
value as ascertained by weight and fineness,
never had legal tender quality. Large num-
bers of these coins entered. however, into the
volume OF our currency. BY common consent
their circulation in domestic trade has now
ceased and they have thus become disturbing
element They should not be longer permitted
to embarraSs our currency system. / recon-
mend that provision for their reception by the
and mintS as bullion at a small per
centage above the current market price of
silver of like ineness.
The Secretary of the Treasury advised a
of certain of the customs dis
tricts of the country and suggests that the
President be vested with such power in rela-
ton thereto as is now given him in respect to
the collection of internal revenue by section
BAL of the Revised Statutes. The statistics on
this subject which are contained in his report
furnish of themselves strong argument i'm
defense of his views. At the adjournment of
Congress the number of internal revenue col |
lection districts was l26. BY executive orders
dated June p, 1883, / directed that certain of
these districts be consolidated. The result
has been u reduction of one-third OF their |
number, which ar present is but So.
COAST DEFENSE.
i again call your attention to the. present |
of our extended sea coast upon |
which so Many large cities, whose wealth and |
Importance to the country would, in time of |