New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-12-05
THE SURPLUS REVENUE AND REDUCTION OF THE

II the revenue for the fiscal year which will end
on Juno 30, 1885, be estimated upon the basis OF
existing laws the Secretary Is of the opinion that
for that year the receipts will exceed by $50 900 900
the ordinary expenditures including the amount
devoted to the sinking fund
HItherto.the surplus as rapidly as it has accumu-
lated has been devoted to the reduction of the Ma
tional debt. As result the only bonds now out
standing which are redeemable at the pleasure of
the Government are the three per cents Amounting
to about $3O5 900, O00 The four and one-half per
cents, amounting to $250.OOO,OOO and the
1891 and 1907 respectively.
If the surplus shall hereafter be as large as tho
Treasury estimates now indicate. the three per cent
bonds may all be redeemed at least four years before
any of the four and onehaf per cents can be called
in. The latter at the same rate of accumulation of
surplus can be paid at maturity and the moneys re-
quiste for the redemption of the four per cents will
be in the Treasury many years before those oblga-
lions become payable.
There are cOgent reasons, however, why the Ma
tOnal indebtedness should not be thus rapidly ex-
tnguished Chief among them is the fact that only
by excessive taxation is such Tapdity attanable.
In communication TO the Congress at its last
sion | recommended that all excise taxes be abol-
ished except those relating to distilled spirits, and
that substantial reductions be also made IN the rev.
enues from customs. A statute has since been en-
acted 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 reductions may be
wisely made, do not advise the adoption at this
session OF any measures for large diminution OF the
National revenues The results of the legislation of
the last session of the Congress have not yet be-
come sufficiently apparent to Justify any radical re-
vision or sweeping notifications of existing law.
In the interval which must elapse before the effects
of the Act of March g. 1888 can be definitely
certaned, portion at least of the surplus revenues
may be wisely applied to the longneglected duty of
rehabtating our navy and providing coast de-
fences for the protection of our harbors. This is
matter to which shall again advert
THE NATIONAL CURRENCY.
Immediately associated with the financial subject
just discussed is the important question: What egis-
latiOn is needed regarding the National currencyf
The aggregate amount of bonds now on deposit
in the Treasury to support the National bank crcu-
lation is about $3.50 900. OOO Nearly 5000 900, 900
of this amount consists of three per cents which,
already stated, 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 diminished. The probable effect
of such an extensive retirement of the securities
which are the basis OF the National bank circulation
would be such n contraction of the volume of tho
currency as to produce grave commercial embarrass
ments.
How can this danger be obviatedl
The most etiectual plan, and one whose adoption
at the earliest practicable opportunity shall heart
lily approve, has already been Indicated If the rev.
stantially commensurate with the expenses the vol
ume of circulation will not be likely to suffer any
material disturbance. But If, on the other hand,
will become necessary cit her to substitute some
other form of currency in place of the National bank
notes, or to make important changes IN the laws by
which their circulation is now controlled.
In my Judgment the latter course Is far preferable.
| l commend to your attention the very interesting
and thoughtful suggestions upon 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 Government
itself a foundation for National bank circulation
| seem to me nsuperable
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 run, bearing low ratio
of interest, and exchangeable upon specified terms
| for those now outstanding. The other course,
| which cOmmends itself to my judgment as the bet
ter. is the enactment of law repeating the tax on
circulation and permitting the banks TO issue notes
for an amount equal to 80 per cent of the market
value instead of as now the face value OF their de-
| posted bonds. l agree with the Secretary IN tho
| belief that the adoption of this plan would afford
| the necessary relief.
The trade dollar was coined for me burpose of
traffic in countries where silver passed at its value
as ascertaner 81 lis weight and fneness. 1t never
mad icgal-tender quality. Large numbers of these
coins entered, however into the volume OF our cur
! reucy. BY common consent their circulation IN
domestic trade has now ceased ana they have thus
| become disturbing element. They should not be
| longer permitted TO embarrass our currency system
| | recommend that provision DO made IoI tIeu re-
Cepion by the Treasury and the mlnts az bullion at
a small percentage above the current market price
of silver of like hnencSs.
CONSOLIDATION OF CUSTOMS DISTRICTS.
The Secretary of the Treasury advises consolida-
try, and suggests that the President be vested with
such power in relation thereto as is now given him
in respect to collectors of Internal Revenue by Sec
ton 3l4l of the Revised Statutes. TIE statistics
upon this subject which contained IN his report
furnish of themselves strong argument In defence
of his views. .
AT the adjournment of Congress the number of in
terna revenue collection districts was l2O. by TX
ecutiye order dated June % 1883, directed thas
certain of these districts be consolidated. The re-
suit has been reduction of onethird their number,
which ut present is but eightythree
INDIAN AFFAIRS.
From the report Of the Secretary of War it will DO
seen that in only single instance has there been
any disturbance of the quiet condition OF our Indian
tribes. raid from Mexico into Arizona was made
in March last by small party of Indians, which
was pursued by General Crook into the mountain
regions from which il had come. 1t is confidently
hoped that serious outbreaks Will not again occur
and that the Indian tribes which have for 50 many
4 years disturbed tue West VIII hereafter reIhaih III
peaceabe submission.
COAST AND HARBoR DEFNCES.
again call your attention to the present con-
dition of our extended sea-cOast upon which Sc
many large cities whose wealth and Importance to
the country would in time of war invite attack IRON
modern armored ships. against which our existing
defensive works could give no adequate protection.
These works were built before the introduction OF
modern heavy-rited guns into maritime warfare
and if they are not put in an efficient condition We
may easily be subjected to humiliation by hOstl'
Power greatly inferior to ourselves.
As geTnllne to this subject, call your attention
to tho importance of perlecting our submarine tor
pedO defences. The board authorized by the las
| Congress TO report upon the method which should
be adopted for the manufacture of heavy ordinance
adapted to modern warfare. has visited the prlncl
pal iron and steel works in this country and IN Ell
rope Ii is hoped that its report will soon be made
and that Congress will thereupon be disposed 70
provide suitable facilities aud plant for the manu-
facture of such guns as are now lnPei"'Noi'
needed
On several occasions during tho past year Officers
tiles visited their militia encampments for inspec
, ton of the troops. From the reports OF thes
officers am induced to believe that the encourage
ment of the State militia organization by the Na