The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1883-12-05
5000 OOO 90
Estimated amount due sinking fund. 45sl6.T41 OF
3q.lS3.Ss eS
The SURPLUS REVENUE.

II the revenue for the fiscal year, which will end
on June 60, 1885, be estimated upon The basis OF
existing laws the Secretary is of the opinion that
for that year the receipts will exceed by sixty mil
lions the ordinary expenditures, including the
amount devoted 10 the sinking fund Hitherto
the surplus, as rapidly as it has accumulated has
been devoted to tie reduction OF the national debt
AS result, the only bonds now outstanding which
are redeemable at the pleasure OF the Government
e Ts Se5 to SSOT sS
COO(C0 and the 3I,UOO,0OO OF t0nr per cents are
not payable until 1891 and 1907 respectively. II
surplus shall hereafter be large the treas
uTy estimates now Indicate the three per cent.
bonds NAV an be redeemed 1T least four wears BE-,
lore the four and oRehaltper cent can be called H.
The latter. at the same rate of accumulation the
required for the redemption of the four per cent.
be IN the Treasury many years before these
reasons, however why The National iraebtcdness
should not be thus rapidly extInguished. Chief
among them is the fact that only by excessive taxa
tion is such rapidity attainablc In a communion
lion TO Congress at its last session, recommended
that all excise taxes be abolished, except those
lating 10 distilled spirits, and that substantial re-
ductions also be made in the revenues from Gus
toms. statute has since been enacted by which
the annual tax and tariff have been cut down to
the extent OF S5o,OO00o0 or Se.OOOOOO. While
have doubt that still further reductions may be
wisely made. do not advise the adoption at this
session OF any measure for large diminution OF
the National revenue. The results OF the legisla-
ton OF the last session of Congress have
not as yet -. become sufficiently ap
on sweeping nOdideatons of the existing law.
In the interval which must eapse before the effects
OF the act of March 8. 1885, can be definitely
tained, portion at least OF the surplus revenues
may be wisely applied to the long neglected duty
OF ofrehabitating our Nation and providing coast
defenses. This is u matter 10 which 1 shall again
advert.
NATIONAL BANK CIRCULcrIoS.
Immediately associated with the financial sub.
iect just discussed is the important question of
what legislation is needed reearding the National
currency. Tie aggregate amount of bonds now on
deposit in the Treasury TO support the National
Bank circulation, is about $3.50 900. Nearly
wch as eadS sasd nayse 81 at er he pes
ure OF the Government and are likely 10 be called
in within less than four years, unless, meantime,
probable effect of such an ex-
iensiye retirement of securities which
are a basis of National Bank circulation, would be
such contraction OF the volume of currency to
produce grave commercial embarrassments. How
can the danger be Obyiated? The most etfectual
plan. and one whose adoption, at the earliest Drac
hcable opportunity, shall heartily approve al
ready been indicated. If the revenue of the next
four years shall be kept substantially commensu-
rate with the expenses. the volume OF circulation
will net be likely to suffer any material disturb
ance; but If on the other hand, there shall be a
come necessary either to substitute some other
form OF currency in place OF the National Bank
n3ses OF a l enanges IN tne AVS
judgment the latter course is far preferable.
commend 10 your attention the very interesting
appear in the Secretarys report. The objections
which he urges against the acceptance of any
other securities than the obligations
foundstion for Sstionai Bank circulation seem @ to
me insuperable for adverting 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
q low rate OF Interest and exchangeable on speci-
fed terms Of those now out. The other course,
which commands itself TO my own judgment as
the better, Is the enactment OF law repeating the
tax on The circulation and permitting the banks to
issue notes for an amount equal 10 ~ per cent OF
the market value. instead OF as now the face value
OF deposited bonds. Iagree with The Secretary in
the belief that the adoption of this plan would
afford necessary relief.
REDENPTIoS OF THE TRADE DOLLAR
The trade dollar was coined for the purpose of
tTec in countries where silver passed at its value
as ascertsined by its weight and tneneSs IL never
had legal tender quality. Large numbers OF these
coins were entered however, with the volume OF
our currency. Their circulation In the domestic
trade has now ceased and they have thus become
destroying element They should not be longer
recommend that provision for their reception by
the Treasury and mints as bullion at small per
centage above the current market price of silver of
like hncness.
CONSOLIDATING THE CUSTOMS DISTRICTS.
The Secretary OF the Treasury advised the con.
solidation OF certain of the Customs Districts of
the country, and suggests that the President be
vested with such power in relation thereto as is
given him in respect to Collectors OF Internal
Revenue, by Section 3.141 of the Revised Statutes
The statistics this subject, which contained
in his report furnish OF themselves astrong argu.
ment in defense of his views. At the adjournment
lection Districts was l26. BY executive orders
dated June IS, 1883 directed that certain OF these
Districts be consolidated. The result has been a
reduction of one,third of their number. which at
q