The Middlebury register and Addison County journal. [volume] (Middlebury, Vt.) 1883-1885, 1883-12-07
DEPARTMENT REPORTS.
TIE Treasury Denart nent,

The report of Secretary Folgcr for the fiscal year
ending June 80, 1888, shows that the ordinary rev.
enues of the government for the year were as fol-
lows Customs, S2l4 I0649T; internal revenue Sl4i,-
10000; sales of public lands, S7,955sGl direct tax,
$S,5I; misce lneous, $50 T9G,G9j, total S39s 2SI,-
$50 Ordinary expenses Civil and miscellaneous,
S6s,6IS022; war department, SiS,9i1,8s3; navy de-
partment sl5,2S3 43I; Indians 81 ,862,59O pensions,
s66,0i2,5I4: interest on public debt i59.ldOl 1872;
total, s265 ,4Os, 1875; leaving surplus revenue of
Ssl,SI9il4 This is 300, 900 more Than MIR. Folger
estimated that the surplus would amount to in his
last annual report. Compared with the previous
fiscal year. the receipts for 1888 have decreased in
customs S5,I0i233 in eternal revenue, s., III,22i;
IN direct tax, soi gso, ana IN mscellsne0ns, f9oo;
$3,2021N. Total decrease 1864 1861. The expendi-
lures show an increase over the year before of
S7,526,69I The expenditures of the war depart
ment increased s546OOOo; for the navy department,
S250,00O, and for pensions nearly s5O0O,O0O, while
the interest on the public debt decreased almost
Since the last annual report the act of March 3,
1888, diminished the sources of internal revenue,
md changed the tariff law that the estimate
made year ago must be entirely revised. Then
she receipts expected from internal revenue were
Si45OO0,0OO. Now the estimated revenue is s12O,-
100000 The receipts from customs have fallen off
proportionatey. 1t Is probable that the receipts
will be about 100000 for the fiscal year 1854,
while the expenditures will amount to 1905 OO0O00,
leaving surplus of tS5,OOO,0OO over and above the
sinking fund
During the last fiscal year the bonds retired
amounted to sl34OO9,I5O. Since then S3S3l4,O0O of
three per cents have been paid an 900 more
have been called. OF this last sum s. 100000 have
been met already, and is included in the 1000
The secretary again calls the attention OF Con-
gress to the fact that the receipts of the govern
ment are greatly in excess of its needs. The dan
gers of this large surplus to the money market arc
dwe upon, and the secretary says that there is no
method of disbursing this surplus except by pay
ment of the public debt Payment of the public
debt, however, is now injurious to the national
banking system. When all the outstanding cal
are paid, the 3 per cents will be reduced to The
neghborhood of $3.50 900, and of this the banks
hold about S2OO,0O0000. If payment of the pubic
debt is to be permitted to 20 on, this year,
it has during The last fiscal year. the existence
of good many national banks is threatened and
this means a sensible contraction of the currency
If the income of the government remains as it il,
the secretary of the treasury will call at least $780,
000OO0 more of bonds before the end OF the fiscal
year, and by the end of the fiscal year 1855 more
than half the banks holding 3s security for cir
culation would have to replace them with Is at
great premium retire their circulation, and thus
contract the currency.
In discussing the mode of reducing the revenue,
the secretary opposes the abolition of the internal
tax. 1t Is estimated that this tax will yield
under the present law 600, and this is least
i35,00OO0O more than the revenue can be decreased
A decrease of the tax on tobacco and spirits does
not necessarily argue smaller revenue, as expe-
rience has often found. Therefore, the secretary
recommends still further reduction of custom duties,
after a proper inquiry shall have developed what
articles can best stand the reduction.
The secretary calls attention to the suggestions
made by Comptroller Knox, that the rate of issue
of national bank notes be increased to ninety per
cent of the market value of the bonds, and that the
4s he refunded in IS, the holders receiving pre-
MUM to be a satisfaction for the resultant loss Of
interest.