The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1883-12-05

will end on June 80, 1885, be estimated
upon the basis of existing laws, the secre-
tary is of the opinion that for that year the
receipts will exceed by 100000 the or
binary expenditures, including the amount
devoted to the sinking fund. Hitherto
the surplus, as rapidly as it has accumu-
lated, has been devoted to the reduction
of the national debt As result the only
bonds now outstanding which are redeem
able at the pleasure of the government are
the three per cents, amounting to about
1906, 100000. The four and one-half per
cents, amounting to $250,000,000, and the
$737, 10000 four per cents are not paya-
BILE 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
aud one-half per cents can be called in.
The latter, at the same rate OF accu-
mutation of surplus, can be paid at matu.
rity, and the moneys requisite for the re-
demption of the four per cents will be in
the treasury many years before those OBJ
legations become payable.
REDUCTION OF TAXATION.
There are cognent 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 at
tainable. In a communication to con-
gress at its last session | recommended
that all excise taxes be abolished except
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 or sixty millions of dollars.
While have no doubt that still further
reductions may be wisely made, do not
advise the adoption at this session Of any
measures for large diminution of the ma
tional revenues. The results OF the
legislation of the last session OF congress
have not as yet become sufficiently appar-
emit to justify any radical revision or
sweeping notifications OF existing law.
In the interval which must elapse before
the effects of the act of Ma CHI 3, 1858,
can be definitely ascertained, a portion at
least Of the surplus revenues may be
wisely applied to the long-negected duty
CT rehabilitating our navy and providing
coast defenses for the protection of our
harbors. This is a matter to which I
shall again advert.
REGULATION OF THE CURRENCY.
Immediately associated with the finan.
cial subject just discussed is the import.
ant question, What legislation is needed
regarding the national currency? The
aggregate amount of bonds now on de-
post in the treasury to support the ma.
tional bank circulation is about $780,
100000. Nearly $200,O00,000 of this
amount consists of three per cents, which
as already stated, are payable at the pleas
ure of the government 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 retirement of the
securities which are the basis of the ma
tional bank circulation would be such d
contraction of the volume of the currency
as to produce grave commercial embar
easements. How can the danger be obvi
, ated ? The most effectual plan, and one
whose adoption at the earliest practicable
opportunity shall heartily approve, ha.
already been indicated. If the revenues o.
the next four years shall be kept substan
TALLY commensurate with the expenses
the volume of circulation will not be likel,
to suffer any material disturbance; bu
if, on the other hand, there shall be grea
delay in reducing taxation, it will becom
necessary either TO substitute some othe
form of currency in place of the nations
| IN tye RI ant oh "a
in the laws by which their circulation j
now controlled. In my judgment, the lat
ter course is far preferable. l comment
to your attention the very interesting ant
thoughtful suggestions upon this subjec
which appear in the secretary's report
The obi ,ctions which he urges agains
the acceptance of any other securitie
than the obligations of the government
itself as q foundation for national ban
circulation seem to me insuperable. Flo
averting the threatened contraction tw
courses have been suggested, either o
which is probably feasible: One is the il
suance of new bonds having many year
to run, bearing low rate OF interest an
exchangeable upon specified terms fc
those now outstanding. The other cours
which oommends itself to my own judi
ment as the better, is the enactment of
law repeating the tax on circulation an
permitting the banks to issue notes fc
an amount equal to ninety per cent {
the market value, instead of, as now, tt
, face value of their deposited bonds.
agree with the secretary in belief that tt
adoption of this plan would afford IL
, necessary relief.
9 THE TRADE DOLLAR.
The trade dollar was coined for ii
purpose of traffic in countries where silv
passed at its value as ascertained by i
= weight and fueness. 1t never had a leg
! . tender quality. Large numbers of the
y coins entered, however, into the volun
y of our currency. BY common consel
. their circulation in domestic trade h,
now ceased and they have thus become
y disturbing element. They should not
) longer permitted to embarrass our CT
. rency system. recommend provisit
Il for their reception by the treasury al
; the minis as bullion at small pr
= centage above the current market pri
u of silver of like fneness.
s OUR DEFENsELEss sEACOAsT.
IS again call your attention to the pr
h emit condition of our extended seacoa
10 upon which are 30 many large citi