Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1883-12-07

four per cents are not payable until 1891 an
1907, respectively.
II the surplus shall hereafter be as larp
as the treasury estimates now indicate, II
three per cent bonds may all be redeemed |
least four years before any OF the four an
one-half per cents can be called 10. The la
ter at the same rate Of accumulation OF Sui
plus can be paid at maturity, and the money
requisite for the redemption OF the four pc
cents will be In the treasury many years bt
fore those obligations become payable.
There are cogent reasons, however, VIII
the National indebtedness should not be thu
rapidly extinguished. Chief amdng theI
Is the fact that only by excessive taxation
such rapidity attainable.
In communication to Congress at las
session | recommended that all excise take
be abolished except those relating to distille
spirits and that substantial reductions be ais
made In the revenues from customs. 4
statute has since been enacted by which the ar
nual tax and tariff receipts Of the governmer
have been put down to the extent or at leas
so or 90 millions of dollars.
While have no doubt that still further rt
ductiohs may be wisely made, lido not advis
the adoption at this session OF any measure
for large diminution Of the National rever
ues. The results Of the legslati onof the las
session OF the Congress have not yet becom
sufficiently apparent to justify any radica
revision or sweeping notifications OF exist
ing laws. In the interval which must elaps
before the effects of the act Of March Q, 1889
can be definitely ascertained, q portion
leas. Of the surplus revenues may be wisel.
applied 10 the long neglected duty of re
facilitating our navy aud providing coast de
fences for the protection OF our hatbors
This Is o matter to which l shall again ad
vert.
Immediately associated with the financia
subject Just discussed is the important qucs
ton, what legislation Ia needed regarding tn
National currency.
The aggregate amount OF bonds now oil
deposit in the treasury to support the Nation
al bank circulation is about $3.50, 900, 900
Nearly $500, 600, 900 of this amount consis
of three per cents which as already stated
are payable at the pleasure of the Govern
ment, and are likely to be called in within
less than four years, unless, meantime, the
surplus revenues shall be diminished. Tht
probable effect Of such an extensive retire
ment of the securities which are the basis o
the National bank circulation would be sucl
a contraction Of the volume OF the currency
as to produce grave commercial embarrass
ment.
How can this danger be averted The
most effectual plan and one whose adoption
ut the earliest practicable opportunity
shall heartily approve has already been in
dicated
If the revenues of the next four year
shall be KEEP. substantially commensurate
with the expenses, the volume OF clrcula
ton will not be likely to suffer any material
disturbance.
But If, on the other hand, there shall be
great delay in reducing taxation, Il will be
come necessary either to substitute somt
other form of currency in place of the Ma
tional bank notes or to make importan
changes in the laws by which their circula
ton is now controlled.
In my judgment the latter course is fa
preferable. commend to your attention thu
very interesting anil thoughtful suggestions
upon this subject which appear in the secre
tion tary's report.
The objections which he urges against th'
of any other securities than the
of the government itself as q
foundation for National bank circulation
seem to me insuperable.
For averting the threatened contraction
two courses have been suggested, either o.
which is probably feasible. One is the issu
ance of new bonds, having many years to run
bearing low rate of interest, and exchange
able upon specified terms with those nov
outstanding. The other course, which com
mends itself to my judgment as the better o
the enactment Of a law repeating the tax OF
circulation and permitting the banks to issu
notes for ar amount equal to % per cent O
the market value instead of as now the fac,
value of their deposited bonds. agree witt
the secretary in the belief that the adoption
of this plan would afford the necessary re
lief.
The trade dollar was coined for the pul
pose of traffic in countries where silver pass
ed as its value was ascertaincd by its weigh
and fineness. 1t never had legal tende
quality.
Large numbers of these coins entered, how
ever, into the volume Of our currency. b
common consent their circulation In domes
tic trade has now ceased, and they have thu
become disturbing element. This shout
not be longer permitted TO embarrass on
currency system. recommend that pre-
vision be made for their reception by tn
treasury and mints as bullion, at small pre-
centage above the cure mt market price G
silver of like fineness.
The secretary OF the treasury advises
consolidation of certain OF the customs dis
tricts Of the country, and suggests that the Pr
sdent be vested with such power in relatio
thereto as is now given him in respect to co
lectors of internal revenue by section BAL Q
the revised statutes. The statistics upo
this subject which are contained in his repo
furnish of themselves str ong argument
defence OF his views.
At the adjournment Of Congress the nun
Der of internal revenue collection district
was 1876. BY executive order dated Jun
25, 1888, directed that certain of these dl
lricts be consolidated. The result has bee
q reduction OF one-third their number
which, at present, is but SO.
The War Department.
From the report of the secretary Of war
will be seen that in only single instance b
there been any disturbance OF the quiet COZ
dilion of our Indian tribes. A raid from Me
leo into Arizona was made in March last b
small party Of Indians which was pursue
by General Crook into the mountain regioI
from which it had come. II is confldent
hoped that serious outbreaks will n
occur aud that The Indian tribes whic
have for 80 many years disturbed the We
will hereafter remain 10 ptaceable suomi
sion.
again call your attention 10 the preser
condition of our extended sea coast, upc
which are SO many large cities whose wcall
and importance to the country woulG in tin
Of war invite attack from modern armt
ships, asaiust which our existing defensi'
works could give no adequate protection
Those works were built before the introdu
ton of modern heavy rfled guns into maj
time warfare and if they are not put in eiit
ent condition, VIC may be easily subjected
humiliation by hostile power greatly infe
ior TO ourselves. AS germane to this subjeo
! call your attention to the importance
perfecting our submarine torpedo d
fences. The board authorized by last Co
gross to report upon the method whit
should be adopted for the manufacture
heavy ordnance adapted to modern warfa
has visitedthe principal iron and steel wor
nthis country and in Europe. 1t is hop
that Its report will soon be made and tn