Sacramento daily record-union., 1888-12-04

year euulnS JuDe 81, 1851, ana 'SSb4, ,l5J S
for the following year.
The requirements of the sinking funt
have been met for the year ended June 80
1888, and for the current year also by th,
purchase of bonds, after complying will
this law, as positively required, and bond
sufficient for that purpose had been bough
at premium. None of the surplus coulC
be used in such purchases until the author
lty to do so should be more explicit. A
resolution, however, having been passed by
both houses of Congress removing al
doubts as to the Executive authority, daily
purchases OF bonds were commenced on the
23d of April, 1888, and have continued until
the present time. By this plan bonds Of
the Government not yet due have been pur.
chased up to, and including, the Both Of
November, 1888, amounting to S94, zoe, 400
The premium paid thereon amounted to
ST., sos, ,613
The premium, added TO the principal OF
these bonds, represents an investment
yielding about 2 per cent. interest for the
time they still had to run, and the saving
TO the Government, represented by the diff
terence between the amount of interest at
per cent. and upon the sum paid for
principal and premiums and what it would
have paid for interest at the rate specified
on the bonds if they had run to their ma
turity, is about $27, ,165 900. At first sight
this would seem to be profitable and SEN
sible transaction on the part of the Govern
ment, but, as suggested by the Secretary of
the Treasury, the surplus thus expended
for the purchase of bonds was money
drawn from the people in excess of any ac-
tual need OF the Government and was so
expended rather than allow it to remain
idle in the Treasury. If this surplus, under
the operation of just and equitable laws,
had been left in the hands of the people it
would have been worth in their business at
least 6 per cent. per annum. Deducting
from the amount of interest on the princi-
pal and premium of these bonds for the
time they had TO run, at the rate of per
cent, the saving of . per cent. made for the
people by the purchase of such bonds, the
loss will appear to be $55, 100000.
This calculation would seem to demon
strate that if excessive and unnecessary
taxation is continued and the Government
is forced to pursue the policy of purchas
ing its own bonds at the premiums which
1t will be necessary to pay, the loss to the
people will be hundreds of millions of dol
lars. Since the purchase of bonds was
undertaken, as mentioned, nearly all that
have been offered were at last accepted. 1t
has been made quite apparent that the
Government was in danger of being sub
jected to combinations to raise the price,
as appears by the instance cited bv the
Secretary of the offering Of bonds of the par
value of only 1926, 900 so often that the
aggregate of sums demanded for this pur-
chase amounted to more than $40, 700 O00
the large sum paid in
the purchase of bonds, the surplus in the
Treasury on the Both day of November,
1889, will be 81, 234, ,610 01, after deductipg
about 500, 100000 just drawn out for the
payment of premiums.
SILVER COINAGE.
At the close of the fiscal year ended June
so, 1887, there had been coined under the
silver coinage Act S266, ,9SS, $50
in silver dollars, $50, ,504 80 of which were
in the hands of the people. On the 30th
day of June, 1888, there had been coined
$299, ,70S, 100 and of this S55. 800, ,303 was in
circulation in coin and $500, ,3S7, ,376 in sill
yer certificates, for the redemption of
which silver dollars to that amount were
held by the Government. On the Both
day of November, 1888, 1912, $40 800 had
been coined S60,970, 900 of the silver dol
lars were actually in circulation, and $237, :
AS S,346 in certificates. The Secretary rec
ommends the suspension of further COIN
age of silver, and in such recommendation
l earnestly concur. For further valuable
information and timely recommendations
ask the careful attention of Congress to
the Secretary's report.
THE WAR DEPARTMENT.
The Secretary of War reports that the
army, at the date of the last consolidated
returns, consisted of 2,1S9 officers and "a
549 enlisted men. The actual expenditures
of the War Department for the fiscal year
ending June 80. 1888, amounted 10 S41, ,165.-
107 OF, of whicn sum 50 $50, 5l6 63 was ex-
pended for public work, including river and
harbor Improvements.
The Board of Ordnance and Fortifica-
tons provided for under the Act approved
September %, 1880, was convened October
3, 1886. and plans and specifications for
procuring forgings for s, 10 and 12-inch
guns, under the provisions of Section 4, and
also for procuring Pinch breechloading
mortars of castiron looped with steel, un-
der the provision of Section of the said
Act, were submitted TO the Secretary OF
War for reference to the Board by tie
Ordn apce Department of the same date.
These plans and specifications having been
promptly approved By the Board and the
Secretary Of War, the necessary authority
to publish advertisements, inviting pro-
posals. in the newspapers were sent out to
the different newspapers designated. The
bids for the steel forgings are to be opened
on December 20, 1888, and for the mortars
on December %, 1888.
A Board of ordnance officers was con-
vened at the Watervleit Arsenal on Octo-
Der 4, 1888, to prepare the necessary plans
and specifications for the establishment of
an army gun factory at that point The
ar of this Roar1 rrifh
for shop buildings and officers quarters.
was approved by the Board of Ordnance
and Fortifications November 5th, 9th and
Sth. The specifications in three forms of
advertisements and instructions to bidders
have been prepared, and advertisements in
viting the proposals for the excavation for
the shop and buildings and for the erection
of two sets of officers quarters have been
published. The detailed drawings and
specifications for the gun factory building
are well in hand, and will be finished in
three or four months, when bids will be
invited for the erection of the building.
The list of machines, etc., is made out, and
it is expected that the plans for the large
lathes, ETC., will be completed within about
four months, and after approval by the
Board of Ordnance and Fortifcations, bids
for furnishing the same will be invited.
1ne IldCQlueS anu OlHtT DAluTeS Will D6
completed as soon as the shop is in readi-
ness to receive them-probably about 1890
Under the provisions of the army bill for
the procurement of pneumatic dynamite
guns, the necessary specifications are now
being prepared, and advertisements for
proposals will issue early in December.
The guns will probably be of fifteen inches
caliber, and fire projectile that will carry
a charge each of about 500 pounds of ex-
plosiye gelati1e with full-caliber proiectiles.
The guns will probably be delivered in
tapm six TO ten months from dates of con-
tract, so that all guns Of this class that can
be procured under the provisions of this
law viii be purchased during the year.
earnestly request that the recommend
ations contained in the Secretary's report,
which are mainly opinions calculated to
increase the usefulness and discipline of
the army, may receive the consideration Of
Congress, Among these the proposal that
there should be provided plan for the ex-
animation Of officers TO test their fitness for
promotion is of the utmost importance.
This reform has been before commended
in the reports Of the Secretary, and its ex-
pedienoy is so fully demonstrated by the