Griggs courier., 1888-12-14
FAIRchlLp ON FINANCE.

Operations of the Treasury Department
Detailed In the Secretary's Annual Re-
port-EnormOus Receipts and Expend-
ttures-Comment on the Surplus, Bonds,
Silver Coinage. Foreign Commerce. Etc.
WASHINGTON, Dec. 5.-The annual report of
the Sc Secretary Of the Treasury begins with an
fiscal year 1855. together with a detailed list of
the uses to which the surplus revenue was APP
Piled. The ordinary revenues oi the Govern
June 30, 1883, were 1919, ,266, ,0T4.76 The ordi-
nary expenditures for the same period were
1853 653,Ms.67. This left surplus of sll9,6l2,.
plus in ways provided for by law there was
left balance added to the cash in the Treas
ury Of sst, 527 7lo.5s. The receipts OF 1888 ex-
ceeded those of 1887 by II. .S62, 797 10, of which
% AZ, S4O.76 was internal revenue and 81, ,SO4,-
2s0.50 customs. There was decrease in the
ordinary expenditures Of Is. :Ta22l.3O.
For the gear 1890 the total receipts are esti-
mated, upon the basis of existing laws, at e37T,.
0o0,0OO, and the total expenditures, including
sinking fund.- at 1923 56i, ,4ss.34, leaving a sur.
ing the sinking fund, SOL, .3., 81 .66. The re-
4ulre rements sol OF the act OF February Is, 1862 (R.
S., 1858 1853. establishing sinking fund for
the gradual extinguishment OF the public debt,
estimated for the current fiscal year at sd7,.
ee3,ooo have been thus far met by the redemp.
bonds OF the United States which had ceased
to bear interest, amounting to e77,79735, and
by the. purchase Of s .6ss9,65O OF the funded
OF 1891. at cost to the fund for premium OF
eI672, 2s2. 20 on the former and SS44, 2O6. 73 on
the latter loan.
THE STEADILY ACCuMULATING SURPLUS.
In the last annual report it was estimated
that the reven les for the year to end June 80,
lSSs would exceed the ordinary expenditures,
Such excess was in reality ,lls6ls, 1869, or
s66l2, 1900 more than the department esti-
mate. 1t was also estimated in the same re-
port that the like surplus for the fiscal year to
end June 90 1889, would be elO4, 3l3, 365 81.
Judging from the actual expenditures for the
first quarter OF this fiscal year, and in the light
November it is probable that this estimate
will prove to have been fairly accurate and
that the surplus will almost exactly equal the
predicted sum.
The accumulated surplus on September go, 1SS8
was $96, 444, S4; the surplus revenues from
that date to June 30, 1889, estimated, are s75.
365, 2OS. 25, making the total accumulation on
June 30 1889, which could be used in the purchase
OF bonds, s17l. .S1OO54 $50; however. between SAID
September 20 and November %, s44 1896, 500. so
has been paid for bonds; consequently il no
more bonds were bought between now and
June 80 next the surplus would then amount to
sl27, ~ 1000. Upon the basis OF appropriations
recommended by the Department, ard upon the
assumption that the revenues OF the fiscal
years to end June 80, 1889 and 1890, will be
year will be tlOl, ,OOO, ,OoO which, with the sur
plus revenues Of this year and the surplus al
ready accumulated, make total Of e2ss, ,O0O,-
600, which might be used during the next nine
teen months in the purchase OF the interest
bearing DEBT and which ought to be used for
that purpose, unless the laws are SO changed
as to reduce the difference between expendi-
lures and revenue by nearly that sum.
About $4,000, 900 of the AZ per cent bonds
are now 70 Outstanding; they are payable Septem
will accrue on them from now until their ma
turlty is in round numbers S25,OOO 900: conse-
qnently the present surplus and the surplus
bonds and all the interest which would
accrue upon them should they be per-
turity. The principal OF the per cent bonds
is now $3.50 900, ,0OO and the interest which could
accrue upon them until their maturity in 1907
is about &Ou,00O, 600; q calculation Will show
that the present surplus revenues, If contin-
ued, would pay before 1900 all OF these per
cent: bonds and all Of this interest. or course
all the money which is saved by purchase Of
bonds at less than the principal and the inter-
crest to accrue but shortens the time when all
the bonds may be paid il the holders will sur.
render them.
WASTE OF PUBLIC MONEY CONDEMNED.
Nothing moreis needed than the foregoing
statement to show the absolute necessity OF q
readlustment Of the public revenues at the
earliest possible date That 1t will be neces.
sary to pay nearly the whole OF the interest
which wlll accrue upon the public debt if an at
revenues IN 1t before its maturity is evident
from the fact that even now the Government is
paying for the IA per cent bonds a price which
realizes only about 1M per cent annually, and
receives but meager offerings OF them at that
price. 10 continue taxation with no other use
for ITS proceeds than such an investment is q
cruel waste OF the peoples money.
BOND PURCHASES.
The purchase of bonds was resumed under q
Circular of April II, 1883 and since that time
nearly all the bonds which have been osered
for sale to the Government have been bought
by it,. Ninety-four millions Of dollars OF bonds
have been secured under this circular, and q
of about sla0O000O; the net rate of interest
realized from this investment is only about 9
per cent and the saving In the total amount
maturity, is about s21.ooOooo. Had taxation
been reduced SO as to leave this money with
the people, and if 1t is worth in their business
per cent. per annum, the total value of the
money to them during the term which these
bonds had TO run would be about $S3 600 600;
thus. there is a resulting loss to the people Of
e56 OOO, 600 upon this transaction alone; if this
over1aXatlon is not stopped, and If the Govern
ment is forced to continue to be purchaser OF
its own bonds at the holders prices, the loss
TO the people, as could be shown by q like cal
culation, must be hundreds OF millions OF
dollars.
URGING TARIFF REDUCTION
The Secretary repeats his recomm endation
OF last year to reduce taxation, and as far as
possible. without too sudden disturbance Of
eSlsting interests, TO make this reduction in
customs taxation, TO the end that the people
may get the greatest possible benefit from the
reduction Besides the vexed econom ques-
ton TO whether a country can make itself
prosperous by q tariff. there is higher moral
question which may we'll be asked aud that is !:
Can Government be kept pure and free
which, through the agency of its laws, offers
vast pecuniary temptations TO some kinds Of
business!
There are many indications that this Ques-
ton must be answered in the negative There
are many proofs that large classes of our bus-
ness men have come 10 depend for success
upon their skill III manipulating Governmental
agencies rather than upon industry, ntein
gcnce and honorable competition Is 1t not
possible that cagerness for the money which
men assume comes TO them only through a
government may lead them to use an
ever-Growlng proportion of their gains to
possess and influence the supposed source
OF their wealth? And will not the en-
deavor TO make men rich soon become
the chief function of our Government? l. not
this already the case2 Ii these dangers exist
il they are not estimated, and they do ex-
lst and are not overeS tlmated, then can it be
doubted that the true welfare of our people
calls for the rescue OF the Government from
them as speedily may be'
This can only be doue by severing Govern
ment from pr yate business. Steps should at
once be taken in that direction, always, how
ever, let me repeat, bear ne in mind interests
which have become established under present
laws to the end that they may not suffer un-
duly while beneticent reforms are made
THE CIRCULATION.
The current circulation November l. 1883
shows q net decrease as compared with July /,
1887, of $40, 045,6l6; the money and bullion held
in the Treasury show ng an increase Of $lO7. I.
fn~ HH.A