Savannah morning news. [volume] (Savannah) 1868-1887, 1886-12-06
SINKING FUND REFORMS.
CHANGES IN THE PRESENT sYS-
TEN IMPERATiVE.

| honds Almost Sure to Occur this
fear-Fhe Government Then Left
without Way to Ease the Money
Msrket-Che Years Receipts and Ex-
penditures.
WASHINGTON, Dec. 0.-The United
states Treasurer hast omitted to the Sec
retary OF the Treasury his annual report,
from which it appears that the net re-
ceipts of the government during the year
ended June 80, 1886, were 1886, ,439, ,727,
and the net expenditures $242, 4S3, 1873.
The receipts were S12, ,749, ,020 greater and
the expenditures SIT, ,743, 1856 less than last
year, making an increase in the net re-
ceipts OF $50. 492,S17. The balance in the
treasury at the close of the year ending
Sept. 80, 1886, was $100, ,O55,775, an in
crease over that of 1885 of l6,Sl5, ,636. The
available balance was $72,9l3, l41 against
$5S,922, l91 last year, an increase Of $13,-
990,949.
THE SINKING FUND SYSTEM.
The Treasurer says that alterations in
the present sub-rreasyry system are
rendered necessary by the financial
changes which have taken place since it
was adopted. On this subject he SAYS:
"As the country increases in wealth and
population, with consequent increase of
It's revenues and disbursements, 1t will be
found impossible to continue the system
in its present iorm. With the extinction
of the 5 per cent. bonds, which with
out SONS depression or event that can
not now be fereseen, must take place
during the ensuing fiscal year. The only
bonds available for the purposes of the
sinking fund will be AZ and per cent.
bonds. These are now selling at a price
| which averages very little more thau2 2 per
cent. per annum to the purchaser upon
the cost, and it may fairly be assumed
that this rate of 2 per cent. is the maxi
mum rate to be earned during the life of
these bonds.
| THE ANNUAL LOSS.
"At the present cost of collection OF the
revenue OF the country, say So 70 per 500,
the loss on the existing sinking fund. say
$40, 100000 per annum, will be $765, 900
annually. Assuming 2 per cent. as the
best rate which the bonds can earn with
out discussing consequent possible de-
rangement of our existing financial sys-
TENT If purchases for the sinking fund
are not to be maintained at their present
figures, it will be found to be impractica-
bic to make these purchases at such times
and in such manner as to relieve the
money market in times OF financial dis
invariably at the time Of the moving OF
the crops of the country this
statement is equivalent to saying
that every productive interest in the
country must pay toll to foreign buyers
through lower range ofprices which OBJ
tain at such times because of the fact
that our arrangements for collecting and
disbursing our revenues are 80 defective
as to need an artificial and violent remedy
in order to place in active circulation
money Withdrawn from the business OF
the country.
AN EVIL PURELY AMERICAN.
"This method of dealing with public
moneys is not true of any country but
this, and the practical sense of the Ameri-
can people, as shown through its repre-
sentatives in Congress, should be ade-
quate TO find remedy for this constantly
recurring eviI-one sure to grow and be-
come more burdensome IN our future ma
tional history. This remedy should be
found ana ad opted with the com
ing session of Congress, because
the evil complained of will be
upon us before its next session and the
| Treasury left without any means OF sup.
| plying the urgent needs Of the country"
Tables are given showing the former and
the proposed manner of estimating the
sinking fund charge for the fiscal year
method OF making up the fund be revised
and annual payments on account of this
fund be made in accordance with the new
form.
wIPING OUT THE DEBT.
The Treasurer says that by the present
| method the entire debt will be retired
| by the year 1908. If the propo>ed method
be adopted the debt will be extnguished
! by the year 1913. Under the old system he
sinking fund charges for 1887 would be
49,S43. 72S; under the proposed method
they would be $37, ,436, ,45S, or $l2. 407, ,27O
less. Auy reduction OF the public debt
in excess OF the annual requirements OF
the sinking fund will OF course, the
Treasurer says, hasten the period OF its
total extinction. The total amount Of
| United States notes outstanding at the
close OF the fiscal gear was S346, ,6S1, ,0l6
The present business season, which be-
gan much earlier than usual, the Treas
urer says, has absorbed large amount OF
currency and this increased movement
has not yet ceased. Since July l
last there has been shipped
from the Treasury and other points $i9,-
426, 1873, of which amount $23. SAG, ,205 were
| in legal tender notes, $l3, ,54O, ,096 IN silver
certificates. SO, 29l. 72S in standard dollars,
aud SO 096,6l4 in fractional silver coin.
The reduction OF the available Treasury
| balance during Iuo saLue peTIOu WAS
$35, 1858.
INCREASED CIRCULATION.
During the same period there was an
increase Of $14, 476 25S in the circulation
Of gold certificates, SIT 403,593 in the cir.
culation OF silver certificates, $2l,6l2 730
| in gold and bullion in the Treasury,
S4.Gj7, ,557 In standard silver dollars In the
Treasury, and So 679, ,S72 in legal notes In
| the Treasury. Tables are gwen to
show the amount OF standard silver
dollars coined. on hand, distributed and
OUTSTANDING at the close Of each year
since heir coinage began. From them 1t
appears that there is now in circulation
s6I. .76l, ,44S. being the largest sum vt at
tained In circulation OF this kind of cur
rency. The Treasurer Is OF the opinion
that $65. O00, 900 is the extreme limit which
NAV be obtained. He says, however,
that IL cannot be maintained at that sum
when the new 81 and 50 silver
certificates are in full supply and the re-
turn to The Treasury OF at least one-half
the amount now IN circulation Is ex-
pected. The Treasurer says: "Assum-
ing the correctness Of these views, the
sum now and TO be spent In the continued
| purchase Of silver bullion and its coinage
into standard dollars leads one to ask
whether IL further purchase Of silver bull
lion Predetermined upon the coinage might
| not cease and the sum whicn this costs be
| In