The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1888-12-12

ing sinking fund. 1928, 567, 4ss. "a
Or an estimated sur
plus of. .$53, 432, 511 GO
Excluding the sinking fund, the estimated
expenditures will be $275, 767, 4SS. "a, show
ing a suplus of $10l, 232, 511.66.
SINKING FUND.
The requirements of the act of Feb. %,
1862 Or. S., 1858, $500, establishing a
sinking fund for the gradual extinguish-
ment of the public debt, estimated for the
current fiscal year at $41, $50, 900, have
been thus far met by the redemption of
treasury notes. frac ional currency, and
bonds of the United States which had
ceased TO bear interest, amounting to
ST., 197 30 and by the purchase of $26, $780,
$50 of the funded loan of 1891, at cost TO
the fund for premium of 1852, 222. % on
the former and 1914, 206,13 on the latter
loan.
SURPLUS REVENUE.
In the last annual report il was estimated
that the revenues for the year TO end June
30, 1889, would exceed the ordinary expen-
ditures, not including the sinking fund,
$l13, 600, 600. 1t will be seen from the forego-
ing statement that such excess was in reali-
ty 81 9,6l2, 1860, or IS, B12, 1900 more
than tine department estimate. 1t was also
estimated in the same report that the like
surplus for the fiscal year TO end June 80,
1889, would be Sl04, 1913, 36564. Judging
from the actual expenditures for the first
quarter of this fiscal year. and in the light
of receipts and expenditures 10 the middle
of November, it is probable that this esti-
mate will prove to have been fairly accu-
rate, and that the surplus will almost exact
ly equal the predicted sum.
The accumulated surplus on Sept %,
| 1888, was 500, 444, S45.S4; the surplus reve-
nues from that date to June 30, 1899 as
estimated, are $50, $50, Dos. %, making the
| total accumulation on June 30, 1889, which
could be used in the purchase of bonds,
| $ln, S10.O54. 90; however, between said
Sept. % and Nov. % $44, 800, 800 80 has
| been paid for bonds; consequently, If no
more bonds were bought between now and
June 80 next the surplus would then
amount to $l21, 600, 900. Upon the basis
of appropriations recommended by the de-
partment and upon the assumption that the
revenues of the fiscal years TO end June 30,
| 1889 and 1890. will be equal, the surplus
revenues for the latter fiscal year will be
| S10l, 900, 600, which, with the surplus reve-
nues of this year and the surplus already
accumulated, make total of $22S, 600, 900,
which might be used during the next nine
teen months in the purchase of the interest
4
for that purpose unless the laws are so
changed as to reduce the difference between
expenditures and revenue by nearly that
| sum-
| About 1888, 000,0 600 of the Al per cent
bonds are now outstanding they are pay
| able Sept /, 1891 The total amount of
| interest which will accrue on them from
now until their maturity is in round
numbers $50, 600, 600; consequently the
present surplus and the surplus which will
probably accrue before July |, 1890, will
suffice to pay the principal of those bonds
and all the interest which would accrue
upon them should they be permitted to re-
main unpaid until their maturity.
The principal of the per cent bonds is
now $3.50 000, 600, and the interest which
could accrue upon them until their ma
turity in 1907 is about $500, 600, 900; n cal
culation will show that the present surplus
revenues, if continued, would pay before
1900 all of the 4 per cent bonds and all of
this interest. OF course all the money
which is saved by the purchase bonds less
| than the principal and the interest TO ac-
crue but shortens the time when all the
bonds may he paid if the holders will sur
render them
Nothing more is needed than the fore
going statement to show the absolute
necessity of read justment of the public
revenues at the earliest possible date. To
continue taxation with no other use for ITS
proceeds than such an investment is cruel
waste of the peoples money.
PURCHASE OF BONDS.
Since the last annual report, and after
the completion of the sinking-fund require
ments for the year ended June 30 1883, no
bonds were bought until there
had been an expression of opinion
by resolution in both houses of
Congress that it was lawful and proper to
invest the surplus in bonds necessary to
obtain them. The purchase was resumed
under circular OF April II, 1888, and since
that time nearly all the bonds which have
been offered for sale to the government
have been bought by it. Ninety -four mill
ions Of dollars of bonds have been secured
under this circular and premium paid for
the privilege of buying them of about
SIS, 200, 900; the net rate of interest realized
from this investment is only about 2 per
cent and the saving in the total amount of
interest which would have been paid
had the bonds been allowed to
run to maturity is about $27 900, 000.
Had taxation been reduced so as to leave
this money with the people, and if it is
worth in their business 6 per cent per an
| mum, tHc bObdA Ndlut VI tic inOntN W LutIl
during the term which these bonds had to
run would be about $50, 600, 600; thus there
is resulting loss to the people of $50, 900,
100 upon this transaction alone; If this
overtaxation is not stopped, and il the gov
eminent is forced TO continue tc be a pur-
chaser of its own bonds at the holder s
prices, the loss TO the people, as could be
shown by like calculation, must be hun
dreds of millions of dollars.
REDUCTION OF TAXATION.
cannot too strongly repeat my recon-
mendation Of last year to reduce taxation,
and as far as possible, without too sudden
} disturbance Of existing interests, to make
this reduction in customs taxation, TO the
end that the people may get the greatest
} possible beneft from the reduction
DEATH IN A BURNING DWELLING
, Three Children Set Fire to House and
Perish i'm a. Flames