The clarion. [volume] (Jackson, Miss.) 1883-1888, 1883-12-12
he prs.idsns,s Ms..ags Extracts.


The rich and populous valley of the
Congo Is being opened to commerce by
society called the International African
Association. of which the King of the
Belgians is President and acifizen Of the
United States.the chiefexecutiye officer,
and large tracts Of territory have been
ceded to the Association by native
chiefs; roads have been opened and
steamboats, placed on the river, and the
nuclei Of States established at twenty
two stations under one flag, and
offers freedom to commerce and pro
hibits the slave trade. The objects Of
the society are philanthropic. It does
not aim at permanent political control,
but seeks the neutrality of the valley.
The United States can not be Indifferent
10 the work, nor to the interests of
their citizens involved in it. 1t may
become advisable for rs to cooperate
with other commercial powers in pro-
noting the rights of trade and residence
in Congo Valley free from the interior
ence or political control Of any one ma
ton.
Then follows tabulated statement of
the country's finances, which we omit.
The total revenues for the fiscal year
ending June 80, 1888 were $S9S, 81, $751;
IS, and the total expenditures 1866, 40S,-
1874 leaving surplus revenue of
$132, S79, 444.00. The message then pro-
ceeds as follows:
ESTIMATED SURPLUS.
If the revenue for the fiscal year,
which will end on June so, 1885, be es-
timated upon the basis of existing laws,
the Secretary is of the opinion that for
that year the receipts will exceed by
$50, 0O0, 900 the ordinary expenditures,
including the amount devoted to the
sinking fund. Hitherto the surplus, as
rapidly rs it has accumulated, has
been devoted to the reduction of the ma
lional debt. As a result, the only bonds
now outstanding which are redeema
bic at the pleasure of the Government
are the 8 per cents, amounting to about
SS05, 600, 600; Al per cents. amounting
| to $3.50, DOC, 900, and the $737 900. 600 !
per cents are not payable until 1891 and
| 1907 respectively. If the surplus shall
hereafter be as large as the Treasury es-
Inmates now indicate, the per cent
| bonds may all be redeemed at least four
wears before any of the AZ per cents can
| be called in. The latter at the same
rate of accumulation of surplus, can be
paid at maturity, and the moneys requi-
site for the redemption of the 4 per cents
will be in the Treasury many years be-
fore those obligations become payable.
THE NATIONAL DEBT.
There are cogent reasons, however,
Why the national Indebtedness should
not be thus rapidly extiRguished. Chief
among them is the fact that only by ex-
cessive taxation is such rapidlty attain
able. In q communication to Congress
at its last session recommended that
ali excise taxes be abolished except those
relating to distilled spirits, and thai sub
stantial reductions also be made in the
revenue from customs. A statute has
| since beer enacted by which the annual
tax and tariff receipts of the Govern
ment have been cut down to tie extent
of at least $50, 10000 or 100000, 900.
While have no doubt that still further
reductions may be wisely made, do not
advise the adoption at this session OF
any measures for large diminution OF
the national revenue. The results of
the legislation of the last session have
not as yet become sufficiently apparent
| to Justify any radical revision or sweep
| ing modification of existing laws. In
the interval which must elapse before
the effects of the act of March 3, 1883,
can be definitely ascertained, 9 portion
| at least of the surplus revenue may be.
wisely applied to the long-neglected
duty of rehabilitating navy and provid-
ing coast defenses for the protection Of
our harbors. This is matter to which
viii again advert.
NATIONAL CURRENCY.
Immediately associated with the fnan-
cial subject just discussed is the impor-
tant question of what legislation is need
ed regarding the national currency
The aggregate amount of bonds now on
deposit in the Treasury to support the
national bank circulation Is about $780,
000, 900. Nearly 100000, 900 of this
amount consists of per. cents, which,
as already stated, are payable at. the
pleasure of the Government, and are
likely to be called in within less than
IOuI ytd1St uutGSS III lIlt IuSdtIluIc I1t
surplus revenues shall be diminished |
The probable effect of such an exten-
sive retirement of the securities which
are the basis of the national bank circu-
lation would be such a contraction of
the volume of the currency as to pro-
duce grave commercial embarassfnents.4
How can the dar ger be obviated? The |
most etfectual plan, and one whose adop- |
tion at the earliest practical opportunity |
| shall heartily approve, has already |
been indicated. If the revenues of the |
next four years shall be kept substan-
TALLY commensurate with the expenses,
the volume of circulation will not be /
likely to suffer any material disturbance;
but, on the other hand, if there shall be /
great 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 i'm
portant changes in the laws by which
their circulation is now controlled In
my judgment the latter course is far
preferable. / commend to your atten-
ton the very interesting and thoughtful
suggestions on the subject which appear
in the Secretary's report. The obiec- I
lions which he urges against the accept
anee of any other securities than the
obligations Of the Government itself as
a foundation for national bank circu-
lation seem to me insuperable. i,
RANKS AND BANKING.
For ayerting the threatened contrac-
ton two courses have been suggested. I,
either OF which is probably feasible. I
One Is the issuance of new bonds hav- /
ing many years to run, bearing low |
rate OF interest, and exchangeable upon !
specified terms for those now outstand- /
ing. The other course, which conimends 5
itself to my own judgement as the bet / !
ter, is the enactment Of law repeating :
the tax on circulation and permitting !
the banks to issue notes for an amount j
equal to 30 per cent. of the market value, /
instead OF as now-the face. value of t
heir deposited bonds. | agree with the /
Secretary in the belief that the adop- /
ion OF this plan would afford the neces- i
AIRY relief. Il
WHAT TO DO wITH THE TRADE DOL
LARS. ~
The tcade dollar was coined for the i
'nrpose of traffic in countries where q
liver passed at its value, as ascertained 3
y its weight and fineness. 1t never had a
legal tender quality. Large numbers Il
these coins entered, however, into the
olume of our currency. By common
onsent their circulation in domestic
,ade has now. ceased, and they have 81
lIis become disturbing element. They u
lould not be longer permitted to EN-. q
aFrass our currency system. recon- Ju
end that provision be made for their Pr
ception by the Treasury and mint q M