The Dickinson press., 1883-12-15
not be thus rapidly extinguished. Chief
among them is the fact that only by excessive |

l among tnem IL the fact that only by excessive
taxation ia such rapidly attainable.
REDUCING THE REVENUE.
In 8 communication to congress at it's last
session I recommended that all excise be abo!-
ished except those relating to distilled spirits,
and that q substantial reduction also be made
in the revenues from customs. A statute has
since been enacted by which the annua tax
and tariff receipts of the government
have been cut down to tile extent
Of at least fifty or sixty millions Of dollars.
While l have no doubt that still further reduc-
tons may be wisely made, l do not advise the
adoption at this session of any measures for O
largo diminution of the national revenues.
The results of the legislation OF last session of
congress have not as yet become sufficiently
apparent to Justify any radical revision or
sweeping notifications of existing law. In tine
interval which must elapse before the effects
ascertained, n portion, atleast, OF this surplus
revenues may be wisely applied to the long
neglected duty of rehabilitating our navy and
providing defenses tor the protection of our
harbors. This is q matter TO which l 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
ury to support the national bank circulation is
about $3.50, 0OO, 900; nearly $4,000 900
of this amount consists of 3 per cents, which.
as already stated, arc payable at the
pleasure of the government. and are likely to
be called i'll within less than foul years, unless
meantime tho surplus revenues shall be di-
unfinished. The probable effect of such an
extensive retirement of the securities which
are the basis of the national bank circulation
would be such q 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 one
whose adoption at the earliest practical
0,,,Nork,ptfy r eIolI 1>oortil,, r,,,,Or 1>o.
already beon indicated. If the reve-
nues Of tho next four years shall
kept substantially commensurate with the ex-
penses, the volume of circulation will not be
likely to suffer sny material disturbances; but
if, on the other hand, there shall be great
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 your attention the very
on this subject which appear in
the secretary's report. Tho objections which
he urges against the acceptance of any other
securities than the Obligations of the govern
ment itself as a foundation for national hank
circulation seem TO mo insuperable. For ed
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 a
low rate of interest and exchangeable upon
specified terms for those now outstanding. Ths
other course. which commends itself to my
own judgment as the better, is the enactment
of q law repeating the tax on circulation
and permitting banls to issue notes
for an amount equal to Copper 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.
II TRADE DoLLSR.
The trade dollar was coined for the purposes
of trade in countries where silver passed at it's
value, ascertained by its weight and tinness.
1t never had q legal tender quality. Large
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
rency system. I recommend that provision for
their reception by the treasury and mints as
bullion at a small percentage above the cur
rent market prices of silver of like %ineness.
CUSTOMS DISTRICTS
The secretary of the treasury advises a. COM
bination Of certain of the customs districts
of the cou: try, and suggests that the president
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
o strong argumentin defense of his views. At
the adjournment of congress the number of
internal revenue collection districts was 1875.
directed that certain of these districts be con-
solidated. The result has been a reduction of
their number, which at present ia but
eighty-ttree.