The Abilene reflector. [volume] (Abilene, Kan.) 1883-1888, 1883-12-13
Leaving a balance Of.
500 lS3 o5S o9

Leaving balance of......... S39.IS3,25S 81
If the revenue for the fiscal year, which will
end on June 30, 1885, be estimated upon the
basis of existing laws, the Secretary is of the
opinion that for that year the receipts will
exceed sixty millions over the ordinary ex.
penditures, including amount devoted to the
reduction of the national debt. As a result
the only bonds outstanding which are redeem
able at the pleasure of the Government are
the three per cents, amounting to about $685.
amounting to $3.50, 900 and the $131, 0O0, 900
of four 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 three per cent bonds may
all be redeemed at least four years before any
of the four and one-half per cents can be
called in. The latter, at the same rate of ac-
emulation of surplus. can be paid at matur-
ity, and the moneys requisite for the redemp-
ton of the four per cents Will be in the Treas
ury many years before those oDllgatlons be-
come 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 ex-
cessive taxation is such rapidity attainable.
In a communication to the Congress at it's
last session. / recommended that all excise
taxes be abolished except those relating to
distilled spirits, and that substantial reduc-
lions also be made in the revenue from Gus
toms. A statute has since been enacted by
which the annual tax and tariff receipts of the
Government have been cut down to the eX-
j have no doubt that still further reductions
may be advisedy made, / DO not advise the
adoption at this session OF any measures for a
large diminution of the national revenues.
The results of the legislation of last session
are not as yet become sufficiently apparent
to Justify any radical revision or sweeping
modification of the existing law. In the in
terval which must elapse before the effects of
the act of March 5, 1888, can be definitely as
certained, a portion, at least. of the surplus
revenues may be easily applied to the long
improving the coast defenses for the protec-
ton of harbors.'
This is a matter to which will again advert.
immediately associated with the financial
subject discussed in this important question,
what legislation Is needed regarding the ma
uonai currency: The aggregate amount of
bonds now on deposit in the Treasury to sup
port the National Bark circulation is about
$35000o,000. Nearly $2.0, 000, coo of this amount
consists of three per cents, which, as already
stated, are, payable at the pleasure of the Gov
eminent, and are likely to be called in within
less than four years, unless meantime the
probable effect of such an extensive retire
ment of securities which are the basis of the
National Bank circulation, woISd be such
contraction OF the volume OF the currency as
TO produce grave commercial embarrass-
ments. How can the danger be obviatedI
The most efectual plan and one whose adop-
ton at the earliest practicable opportunity,
shall heartily approve, has already been in
Dictated. If the revenues of the next four
years shall be kept substantially commensu-
rate with the expenses. the volume of circula-
ton will not be likely TO suffer any material
disturbance, but on the other hand, if there
shall be great delsy in reducing taxation, it
will become necessary either to substitute
some other form of currency in place of Ma
tional Bank notes, or to make important
changes in the laws by whibh their circulation
is now controlled. Inmy Judgment, the latter
course is far preferable. / commend to your
attention the very interesting and thoughtful
suggestions on this subject which appear in
the Secretary's report The objections which
he urges against the acceptance Of any other
securities than the Obligations of the Govern
ment itself as q foundation for National Bank
circulation seems 70 me insuperable. For
averting the threatened contraction two
courses have been suggested, either of which
is probably feasible. One is the issuance of
new bonds having many years TO ru,A bearing
low rate 81 interest and exchang cable upon
specified Germs for those now outsfI Anding The
other ccJurse which commends itself to my
own 5zAsDent as the better one Is the enact
nsns<of 6 lsw prohibiting the tar On eircula-