The National tribune., 1883-12-06
SURPLUS REVENUES.

The President is of the opinion that no steps
toward further reduction Of taxation should
be taken by Congress at this session, however,
and until the full effect OF the reduction al
ready made can be asceFtained he suggests that
a portion al least Of the surplus revenues may
be wisely applied to the long neglected duty Of
rehabiIitating our navy and providing coast
defenses for the protection of orr harbors.
Immediately associated with the financial
subject just discussed is the important question:
What legislation is needed regarding the ma
tioual currencyl
The aggregate amount of bonds now on de-
post ia the Treasury to support the national
bank circulation Is about $3.50, 100000 Nearly
$500, 100000 of this amount consists of three
per cents, which 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 extensive re-
tirement 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 enIbarrassn1ents
How can this danger be obviafed2 The most
eiiectuai plan, and one whose adoption at the
earliest practicable opportunity shall heartily
| approve, has already been indicated.
If the revenues of the next four years shall
be kept substantially commensurate with the
expenses, the volume Of circulation will not be
| likely to suffer any material disturbance
But il, ON the other hand, there shall be
| great delay in reducing taxation, it viii be-
/ come necessary either to substitute some other
1 form OF currency in place Of the national bank
notes, or to make important changes III tue
/ laws By which their circulation is now con-
| trolled.
In my Judgment the latter course is far pre-
! ferable. l commend to your attention the very
/ interesting aud thoughtful suggestions upon
this subject which appear in the Secretary IS re-
port.
The objections which he urges against the
acceptance of any oller securities than the OBJ.
legations OF the Government itself as founda-
1 ton for national bank circulation, seem to me
| masquerade.
For ayerting the threatened contraction two
courses have been suggested, either of which is
| probably feasible. One is the issuance of new
| bonds having many years 20 run, bearing a low
rate of interest. and exchangeable upon speci-
fed terms for those now outstanding The
! other course which commends itself to my own
| judgment as the better, is the enactment of a
/ law repeating the tax on circulation and per-
uniting the banks to issue notes for an amount
/ equal to 80 per cent. of the market value in
! stead of as now the face value of their de-
| posted bonds / agree with the Secretary in
the belief that the adoption OF this plan would
afford the necessary relief
THE TRADE DOLLAR.
| Inc President recommends that provision
be made for the reception of trade dollars by
| the Treasury and the minis, as bullion, at a
| small percentage above the current market
| price Of silver of like iineness
In referring to the report Of the Secretary OF
| war he dwells at length upon the importance
OF maintaining The country's sea-coast defense,
and also declares his belief that the encourage
ment Of the State militia organizations by the
! national Government would be followed by
ffzrf4le A.
sudden emergencies the aid of large BODY OF
volunteers educated in the performances OF
military duties
TIE NAVY
In regard to the necessity for maintaining q
respectable navy the President says
il is no part Of policy to create and maintain
a navy able to cope with that of the other great
powers OF the world.
We have no wish for foreign conquest and the
peace which we have long enjoyed il III no seem
ing danger OF interruption.
But that our naval strength should be made AIDE.
quate for tile defense of hariors the protection
OF our commercial interests and tile maintenance
Of our national honor, IS proposition from which
no patriotic citizen can withhold his assent
POSTAL MATTERS.
In referring TO the report Of the Postmaster
General, the President dissents from the lat.
ters recommendation in favor of postal teIe-
graph, but recommends that tho postage on
local letters be reduced to one cont.
ihe President Endorses the Attorn Gen
erals recommendation that the statutes as ia
fees OF witnesses and those regulating the com.
pensation Of district attorneys and marshaIs
shourd be amended
PENSIONS
In reviewing the report Of ths Secretary Of
The Interior, the President says:
particularly call your attention to his presenta
ton OF certain phssas ofthe Indian question: 70 hil