The daily gazette., 1883-12-05

Total. $2o5, ,408, l37.54
Leaving a surplus revenue Of S1S2, ,874,-
444.41 which, with an amount drawn from
the cash balance In the Treasury of 81, ,299.-
312.55, making $134, 1TS ,756. 90, was applied
to the redemption of various bonds and
loans.
The revenue for the present fiscal year,
actual and estimated, is as follows: For the
quarter ending September 30, 1888, actual
$05, ,986 OF. .03; for the remaining three quar-
ters of the year, estimated, S247 ,033, ,OS2. 81.
The actual and estimated expenses for the
same period are: For the quarter ending
September 30, 1888, actual, $67, ,942, ,090.3S;
for the remaining three quarters of the year,
estimated, $190, ,057, ,9O9.07. Total receipts,
actual and estimated, $343, 900, 600. The
expenditures, actual and estimated, $25S,
100000. Total, Sinking Fund, S45,Sl6,-
741.07. Leaving balance of $S9,1s3,-
25S 90.
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
Of the opinion that for that year the receipts
will exceed $50, 900 900, the ordinary ex-
penditures including the amount devoted to
Sinking Fund.
WHAT TO DO ABOUT TIE SURPLUS.
Hitherto the surplus, as rapidly as 1t has
accumulated, has been devoted to the reduc-
tion of the National DshS.
As a result the only bonds now outstand-
ing, which are redeemable at the pleasure of
the Government, are the three per cents,
amounting to about $S05, 100000.
The four and one-half per cents, amount
ing to $3.50, ,000, 900, and the S737 000, 900 four
per cents are not payable until 1891 and 1907,
respectively.
II the surplus shall hereafter be as large as
Troa aatf
three per cent. bonds many all be redeemed
at least four years before any of the four-and-
one-half per cents can be called In. The lat
ter, at the same rate of accumulation of sur
plus, can be paid at maturity, and the
moneys requisite for the redemption Of the
four per cents will be in the Treasury many
years before those obligations become pay
able 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 taxa
tion is such rapidity attainable.
In q communication to Congress at It's
last session recommended that all excise
taxes be abolished except those relating to
distilled spirits, and that substantial reduc-
| tions be also made In the revenues from
customs. statute has since been enacted
| by which the annual tax and tariff receipts
| of the Government have been cut down to
| the extent at least of fifty or sixty million
million of dollars. While l have no doubt
that still further reductions may be wisely
made. l do not advise the adoption at this
session of any measures for large diminution
| of the national revenue The results OF the
| legislation of the last session Of the Congress
| have not, as yet, been sufficiently apparent
/ to Justify any radical revision or sweeping
notifications of existing law. In the inter.
/ val which must elapse before the effects OF
| the acts of March 8, 1888, can be defnately
ascertained, a portion at least fthe surplus
revenues may be wisely applied to the long
neglected duty Of rehabilitating our navy
and providing coast defenees for the protec-
| tion of our harbors. This Is matter to
which shall again advert.
NATIONAL BANK CURRENCY.
Immediately associated with the financial
| subject Just discussed is the important ques-
| ton. What legislation is needed regarding
the National eurrencyl
The aggregate amount of bonds now or
deposit in the Treasury to support the
National Bank circulation is about $780,.
600, 900. Nearly $500, ,000, 900 of this amount
consists of three per cents, which, as al.
ready stated, are payable at the pleasure oi
the Government, and are likely to be called
in within less than four years, unless mean
time the surplus revenues shall be dimin.
ished.
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 currency as to produce grave com
mercial embarrassments.
How can this danger be obviated9 The
most effectual plan, and one whose adop
ton at the earliest practicable opportunity
shall heartily approve, has already been in
dieated.
If the revenues of the next four years shal
be kept substantially commensurate witt
the expenses, the volume of circulation vii
J not be likely to suffer any material disturb
ance But if, on the other hand, there shal
be great delay in reducing tax, 1t will be
come necessary either to substitute som
!, other form of currency In place of the Ma
! tional Bank notes, or to make importan
+ changes In the laws by which their circula
t ton is now controlled.
t In my judgement the latter course is ia
l preferable. l commend to your attention
the very interesting and thoughtful sug
| gestions upon this subject which appear i
< the Secretary's report.
g The objections which ho urges against th
= acceptance of any other securities than th
. | obligations of the Government itself as
!; foundation for National Bank circulatio
i, seem to be insuperable.
For averting the threatened contractio