Morris tribune., 1883-12-05

AZ per cents, amounting to pz5U, UUC ,UUU;
and the $737, 600, 900 Der cents are not
payable until 1891 and 1907 respectively Ii
the surplus shall hereafter be as large as the
treasury estimates now indicate, the per cent
bonds may all be redeemed at least four years
before any of the 41o per cents can be called
in. The latter at the same rate OF accumuIa-
ton of surplus oan be paid at matur-
ity, and the moneys requisite for
the redemption of the 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 eXtingushed. Chief
among them is the fact that only by excessive
taxation is such rapidly attainable.
REDUCING THE REVENUE.
In communication to congress as Its last
session l 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, dn not advise the
adoption at this session of any measures for
largo diminution of the national revenues.
The results of the Legislation OF last session of
congress have not as yet become suthcleHtly
apparent to Justify any radical revision OF
sweeping notifications of existing law. In the
interval which must elapse before the effects
of the act of March 8, 1888, can be definitely
ascertained, portion, at least, OF this surplus
revenues may be wisely applied to the long
neglected duty of rehabiliating 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 ia the import
ant question, What legislation is needed re-
garding the national currency? The aggregate
amount of bonds now on deposit in the treas
To- fhn
about $3.50, 600, 600; nearly 5000, DOC, 900
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
would be such contraction of the volume of
the currency as to produce grave commercial
embarrassment How can the danger be obvi-
ated? The most effectual plan, and ono
whose adoption at the earliest practical
opportunity 7 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 any material disturbance; but
if. on the other hand, there shall be great
delay in reducing taxation, it will become
necessary either to substitute some other form
OF currency III place Oh Uduh uOtoos
or to make important changes IN the laws by
which their circulation is now controlled. In
my Judgment the latter course is far preferable.
commend to your attention the very
interesting and thoughtful suggestions
on this subject which appear IN
he urges against the acceptance of any other
securities than the obligations of the govern
ment itself as a foundation for national bank
circulation seem to me insuperable. For adj
verting the threatened contraction, two courses
have been suggested, either of which is prob
ably feasible. One is the issuance of new
bouds, having many years to run, bearing
low rate Of interest and exchangeable upon
specified terms for those now outstanding. Tho
other course, which commends itself to my
own Judgment as the better, is the enactment
of a law repeating the tax on circulation
and permitting banks to issue notes
for an amount equal to 80 per cent of the mar
ket value, instead of, as now, the face value OF
deposited bonds. Iagree with the secretary in
the belief that the adoption of this plan Will
afford the necessary relief.
THE TRADE DOLLAR.
The trade dollar was coined for the purposes
of trade in countries where silver passed at Its
value, ascertained by it's weight and finness.
1t never had legal tender quality. Large
numbers of these coins entered, how
ever, into the volume of our currency
by common consent Their circulation in
domestic trade has now ceased, and they have
become a disturbing element. They should
not longer be permitted to embarrass our cur
rercy system. l recommend that provision for
their reception by the treasury and minis as
bullion at small percentage above the cur
rent market prices of silver of like fneness-
CUSTOMS DISTRICTS.
Tho secretary of the treasury advises COM
bination of certain of the customs districts
of the cou try, and suggests that the president
be vested with such power in relation thereto
as is now given him in respect to collec-
tors of internal revenue by Sec.
3131 Of tho revised statutes. The
statistics on this subject which are
contained in his report, furnish of themselves
a strong argument in defense of his views. At
the adjournment of congress the number OF
internal revenue collection districts was 126:
By executive orders dated June %, 1883,
directed that certain of these districts he con-
solidated The result has been reduction of
one-thlrd their number, which at present is but
oio