Connecticut western news., 1883-12-12
OUR NATIONAL AFFAIRS.
WHAT THE PRESIDENT HAS TO SAY ABOUT THE STATE UF THE
 COUNTRY.


 ABOUT THE STATE UF THE An Overhowlng Treusury-Whae to Do will
 the Surplus Fnnds-The PerplexinE Nlar
 mon Questionable Civil Seryice-PresI
 dentinl Succession, Etc.. Etc.
 In his message to Congress, President Arthur says At the threshold of your deliberations, congratulate you upon the favorable aspect of the domestic and foreign affairs of this Government. Our relations with either countries con- tinue to be upon friendly footing. During the year there have been per footed and proclaimed consular and commercial treaties with several nations, with which such treaties did not hereto fore exist.
 THE SURPLUS REVENUE.
 If therevenue for the fiscal year which will end on June 30, 1885, be estimated Secretary is of opinion that for that year the receipts will exceed $6o, ,o0o, 900, the ordinary expenditures including the amount devoted to the sinking fund.
 Hitherto the surplus, as rapidly as it
 
 the reduction of the national debt. AS result the only bonds now outstand- ing which are redeemable at the pleasure of the Government are the three per cents, amounting to about $305, 900, 900. The four and one-half per cents. amounting to $250, 900, GOO, and the $737, ,00O, GOO four per cents.. are not payable until 1891 and 1907, respec- lively.
 If the surplus shall hereafter be as large as the Treasury estimates now in dicate, the three per cent. bonds may all be redeemed at least four years before any of the four and one-half per cent. 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 four per cents. will be in the Treasury many years before those obligations become 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 attain able.
 In communication to the Congress at its last session, recommended that all excise taxes be abolished, except those relating to distilled spirits, and that substantial reductions also be made in the revenue 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 I have no doubt that still further reductions may be wisely made, I do not advise the adoption at this ses- sion of any measures for large diminu- tion of the national revenues. The re- suits of the legislation of the last session of the Congress have not as yet become sufficiently apparent to justify any radi- cal revision or sweeping modif cation of existing law. In the interval which must elapse before the effects of the act of March 8, 1888, can be definitely as- certained, portion of the surplus rev. enues may be wisely applied to the long neglected duty of rehabilitating our na- tion and providing coast defences for the protection of our harbors. This is Q matter to which shall again advert.
 THE NATIONAL CURRENCY.
 Immediately associated with the finan- cial subject discussed is the important question, What legislation is needed regarding the national currency?
 The aggregate amount of bonds now on deposit in the Treasury to support the national bank circulation is about $35O,- GOO, 600. Nearly $200, ,0OO, ,OOO of this amount consists of three 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 diminished.
 The probable effect of such an exten- sive retirement of the securities which are the basis of the national bank c;rcu- / lation would be such contraction of the volume of the currency as to produce grave commercial embarrassments.
 How can this danger be obviated The most effectual plan, and one whose adoption at the earliest practicable op- portunity shall heartily approve, has already been indicated. If the revenues of the next four years shall be kept sub- stantially commensurate with the ex. penses, the volume of circulation will not be likely to suffer any material dis turbance.
 But if, on the other hand, there shall be great delay in reducing taxation, ii will become necessary either to substi- ute some other form of currency in place of the national bank notes, or tc make important changes in the laws by which their circulation is now controlled
 Tn my judgment the latter course i far preferable. I commend to your at tention the very interesting and thought full suggestions upon this subject whlc| appear in the Secretary's report.
 The objections which he urges agains tho acceptance of any other securities than the obligations of the Governmen itself as foundation for national banl circulation seem to me insuperable.
 For ayerting the threatened contrac ton two courses have been suggested either of which is probably feasible One is the issuance of new bonds, hay ing many years to run, bearing loN rate of interest, and exchangeable upol specific terms of those now outstanding The other course, which commend itself to my own judgment as the better is the enactment of law repeating tn tax on circulation and permitting tn banks to issue notes for an amour equal to ninety per cent. of the marke value instead of as now the face valu of their deposited bonds. agree wit the Secretary in the belief that the ador tion of this plan would afford the neC essary relief.
 THE TRADE DOLLAR.
 The trade dollar was coined for tn purpose of traffic in countries where si yer passed at it's value as ascertained b its weight and fineness. It never had legal tender quality. Large numbers these coins entered, however, into th volume of our currency. By commo consent their circulation in domest trade has now ceased, and they hay