Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1883-12-13

Htne revenue Tor the fiscal year, which VIII end
on June 80, 1850, be estimated upon the basis Of
existing laws the secretary is of the opinion that
for that year the receipts will exceed $50 600 600
the ordinary expeditures including the amount
devoted to the sinking fund Hitherto tile sur
plus as rapidly II has accumulated has been de-
voted TO tie reduction of the national debt and as
q iesGlt the only bonds outstanding, which are
redeemable nt the pleasure Ofthe government, are
the . per cents amounting to about S3Q00OO,- =
900. The ~ per cents amounting to $500 900, Z
900 and the ST37 100000 of 4 per cents ate
not payable until 1891 and 1907 respectively.
" the surpltsshal hereafter be "a large ns the
treasury estimates now indicate, the 8 per cent
bonds may all be redeemed ut least four years be-
fore ahy OF the IA per cents can Be called In. Tie
latter at the rate Accumulation Of surplus
ran DO paid ~ mntugitt and tile monies requisite
TOR the eretomptidh ofthe per cents will be in
lle treasury many years Before those obligations
Become payable, There are cOgeut reasons how
ever why the national indebtedness should not
be thus rapidly cxIingllshed, Chief among them
is the fact that only by excessive taxation Is such
revenue atainable. In u communication to tho
congress at its last Session, recommended that all
excise taxes he abolished, except 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 an-
nual tax and tariff receipts Of the government
have been cut down to 4 3 extent OF at least $50,
OOO,O 900 or $50, O,OOO,OOO. While have no doubt
that still further reductions may DO aivscdy
made do not advise the adoption this ssion OF
amy measures iot large dimnution OF the ma
ional revende Tho results Of the legislation last
session have not yet become sufficiently appar-
cnt to Justify any radical revision or sweeping
modification OF the existing law in the interval
which mus clap'c before the effects of the act Of
March 3, lSS3, can be definitely asCcrtaincd. A
portion at least the surplus revenues may he
ea'y applied TO the long ncgectedduty OF rehabil-
hating oWr navy ml improving our coast dcienses
for the protection Of our harbors, This Is mat
ter to which will again advert. Immediately as
ISOLATED with the financial subject Just
discussed in this important question
what legislation IL nccdcd regarding the natl onal
currcncy? The aggregate amount OF bonds now
on deposit In the treasury To support the national
bank circulation is about 5O,OJO,nOO Nearly
S2OO,OOO,OOO Of this amount consists of 3 per
cents which, as already stated, are payable at tie
pepsute OF tile government, and are likely to be
called In within less than four years unless mean
time the surplus revenucs shall he diminished.
The probable effect Of such an extensive retire
mcnt Of securities, which are the basis of tho
national bank circulation, would be such u
contraction of the volume of the cur
rcncy ms to produce grave commercial en-
brrassmcnt4. How can the danger be OBJ
Waited? The most clIcctu0l plan aud one whose
adoption at the earliest practicable opportunity,
shall heartily approve, has already been indicated
lLthc revenues OF the next tOu" years shall he kept
substantially commensurate with the expenses
the volume OF circulation will not be likely to
suffer any material disturbance, hut on the other
hand If there shall he great delay in reducing tax
auOu II Will become necessary either TO substitute
some Ointr form Dl currency IN place Ot national
bank notes, or to make important changes In tho
laws by which their circulation is now controlled.
In my Judgment the latter course il far preferable
] commend to your attention the very interesting
and thoughtful suggestions on this subject which
appear in the secrclarys report The
objections which he urges against the
acceptance of any other securities than
the obligations Of the government itself
rs II foundation for national bank circulation
seems to me in'uprrlble. For nvcriing the
threatened contraction two courses have been
suggested, either of which Is probably feasible
One is the i5snInco Of new bDuls having mIuy
years to rum bcaring low rate Of interest and OK
chnngcHbc upon specified terms for those now out
stan ling. The other cblirSc which cOmmeuds it.
seltto my own Judgment a, the better ono Is the
enactment oi law rcpci. ing the tax On crcula
ton and permitting the banks to issue notes for
amount equal to 30 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 Ofthis plan would afford the
necessary relief.
The tridc dollar coined for the purpose oftrnillc
in countries where silver passed at It's value
certlincd by weight aud inrncss never had q Legal
tender quality. Large numbers of these coins en-
tered however, into the volume ot our CurrtnCy,
by common consent their circulation in domestic
trade has now nscd and they have thus become
a disturbing element. They should not be Ion ger
permit cd 10 cmblril-s our currency system. |
recommend that provision for their reception by
the treasury AID mints as bullion ut u small per-
ccntal,c above the current market price Of silver
Of like inenes5.
The secretary Of the treasury advised q oonsol-
idation of certain OF the customs districts Of the
country aud Sug grstS that the preside b. vested
with such power in relation thereto. ns Is now
given him in respect to the collection Of internal
revenue by section Jll of the revised statutes.
The statistics on this subject which are contained
In his report furnish of themselves u strong argu-
mcnt In defense of his views Attic adjournment
pf COngreI, the number Ot Internal revenue col
lection districts was 1876 by executive orders
lated June %, 1888, | directed that certain OF
these districts b> consolidated. The result has
been - reduction Of onc-third Of their number
which at present is but SO.