The sun. [volume] (Morris, Stevens County, Minn.) 1882-1895, 1883-12-13

If the revenues for the fiscal year which will
end on June 80, 1885, be estimated upon the
basis of existing laws the secretary Is or the
opinion that for that year the receipts will ex-
coed by $50. OOO,O 900 the ordinary expendi-
tures. including the amount devoted to the
sinking fund. Hitherto the surplus, as rapid
" as it has accumulated. has been devoted to
the reduction of the national debt As result,
the only bonds now outstanding which are re-
deemable at the pleasure Of the government aye
the per cents. amounting to $500, 600. OOO:
10 per cents, amounting to $3.50, DOC, 900;
and the S737, GOO, 900 4 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 per cent
bonds NAV all be redeemed at least four years
before any of the 4 l2 per cents can be called
in. The latter at the same rate OF accumuia-
ton Of surplus oan be paid ut matur-
ity, and the moneys requisite for
the redemption of the 4 per cents will
be in the treasury long before these obligations
become 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 excessive
taxation is such rapidly attainable
REDUCING THE REVENUE.
In a communication to congress At Its last
session recommended that all excise be abol-
ished except those relating to distilled Spirits.
and that substantial reduction 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 reduc-
tons may be wisely made, do not advise the
adoption at this session of any measures for .
large d:minution of the national revenues
The results of the legislation Of last session Of
congress have not as yet become sufficiently
apparent to Justify any radical revision or
sweeping notifications of existing law. In the
interval which must elapse before the effects
of the act of March 8, 1883, can be definitely
ascertained, portion, at least, OF this surplus
revenues may be wisely applied to the long
neglected duty of rehabilitating our navy and
providing defenses for the protection of our
harbors. This is a matter to which shall
again advert Immediately associated with the
financial subjects just discussed is the import
ant question, What legislation is needed re-
garding the national currency? The aggregate
amount of bonds now on deposit in the treas
urv to support the national bank circulation is
about $3.50, OOO, 900; nearly 5000, OOO, 600
of this amount consists of 3 per cents, which,
as already stated, are payable at the
pleasure of the government. and are likely to
be called in within less than four years, unless
meantime the surplus revenues shall be d.
minished. The probable effect OF such an
extensive retirement of the securities which
are the basis of the national bank circulation
~ 'A-S
the currency as to produce grave commercial
embarrassment How can the danger be obvi-
ated? The most effectual plan, and one
whose adoption at the earliest practical
opportunity l shall heartily, approve, has
already been indicated If the reve.
nues of the next four years shall
kept substantially commensurate with the ex-
penses, the volume of circulation will not be
likely to suffer epy material disturbance; bu
If, on the other hand, there shall be grea
delay in reducing taxation, it will become
/, necessary either to substitute some other form
of currency in place of the national bank notes
or to make important changes in the laws by
which their circulation is now controlled II
my judgment the latter course is far preferable
/ commend to your attention the yer,
on this subject which appear il
the secretary's report The objections which
he urges against the acceptance Of any othel
securities than the obligations of the govern
ment itself as foundation for national tani
circulation seem to me insuperable. For ad
ver,ing the threatened contraction, two courses
have been suggested, either of which is prob
ably feasible. One 10 the issuance OF nev