The Warner weekly sun. (Warner, Brown Co., Dakota [S.D.]) 1883-1885, 1883-12-14

al, per cents, amounting TO p20u, y ,utup
and the 1897, 600, 600 4 per cents are n1
ravable until 1891 and 1907 respsetively. Ii
the surplus shall hereafter be as large as Ira
treasury estimates now indicate, the 5 per cent
bonds NAV all be redeemed at least four yeaTs
before any of the 4l2 per cents can be caIIs4
IN, The latter at the saUe rate of accumula.
tiOn of surplus oan be paid at matur.
inv. and the moneys requisite fof
the redemption of the 4 per cents will
be in the treasury long before these obligatigss
become payable. There are cogent reasons
however, why the national indebtedness should
NOT be thus rapidly extinguished Char
among them is the fact that only by excessive
taxation is such rapidity attainable.
REDUCING THE REvENUE
In A communication to congress at its last
session | recommended that all excise be abol.
ishcd except those relating to distilled spirits
and that a substantial reduction also be mads
in the revenues from customs, A statute haa
since been enacted by which the annual tar
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 DO wisely made, | do not advise the
adoption at this session OF any measures for 4
large diminution Of the national revenues
The results Of the legislation OF last session az
congress have not as yet become sufficiently
apparent to Justify any radical revision or
SWeEDluR mDNllllCGblODs Va NAlSlllk ldNs Iii tina
interval which must elapse before the effects
of the act of March 3, 1888, can be defniteIv
2s32YtaiuGd, d portion, al ieast, or this surplus
revenues may be wisely applied 20 the long
neglected duty Of rehabllitatlng 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 is the import
ant question, What legislation is needed re-
garding the national currency? The Aggregate
amount of bonds now on deposit in the treas
urv to support the national bank circulation is
about $35O,OOO, 600; nearly $1,000 D 900
Of this amount consists Of ) per cents, which,
as already stated, are payable at the
pleasure of the government, and are likesy to
be called in within less than four years, unless
meantime the surplus revenues shall be d-
minished. The probable effect of such en-
extensive retirement Of the securities which
are the basis of the national bank circulation
would be such a 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 ona
whose adoption al tne earliest practical
opportunity l shall heartily approve, has
already been indicated Ii 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 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.
! commend to our attention the very
interesting and thoughtful suggestions
on this subject winch 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 a foundation for national bank
circulation seem 10 me insuperable. For ad-
verting the threatened contraction, two courses
have been suggested, either of which is prob
ably feasible. One is the issuance Of new
bonds, having many years to run, bearing .
low rate Of interest and eXchangeable upon
specified terms for those now outstanding. The
other course, which commends Itself 10 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 viii
afford the necessary relief.
THE TRADE l.
The trade dollar was coined for the purposes
| of trade in countries where silver passed at ita
value, ascertained by it's weight and fnness
1t never had a legal tender quality. Large
number 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
rency system. ] recommend that provision for
their reception by the treasury and nniuts as
bullion at a small percentage above the cur
rent market prices Of silver of like fneness.
| CUSTOMS DISTRICTS.
The secretary Of the treasury advises a COM
bination of certain Of the customs districts
of the country, 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 the revised statutes. The
statistics on this subject, which are
contained in his report, furnish of themselves
q strong ~argumentin defense of his views. A.
the Adjournment of congress the number oil
informal revenue collection districts was 70.
By executive orders dated June %, 1888, /
directed that certain Of these districts be con-
solidated The result has been a reduction OF
one-third their number, which at present is but
| elghty-three.
POSTOFFICE AFFAIRS.