New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-12-05
as submitted by the several Executive Departments
and offices. are as follows:

DARN mont
SINKING fund s47.soo,ooo 90
i"t debt u" ''o''' ssoOo.oOo 90
NEUTRALITY-SUSPICIOUS. in.
ternal revenue. lands. ..o-oooo
Collecting revenue from 10000,
customs Dr. 80 ~,
Ni'''"""'O"' -,---------1os eo1. o55 o5
T0, sinking sn" funa eNpe"'.'O 1929 5e7,4ss "a
Or a., estimated surnlus OF 58432. 81 90
Excluding the sinking fund, the estimated expcndi-
lures Will be s275,7G7 4s5 "a, showing surplus OF
s1O1 ,23o, 511 GO.
SINKING FUND.
The requirements OF the act OF February 2o, 1862
R S. 1888 36s9), establishing a sinking fund
for the gradual extinguIsbment Of the public
debt estimated for the current fiscal year at S47.
5S3. 900. have been thus far met by the redemption
of Treasury notes, fractional currency and bonds
of the United States which had ceased TO bear In
tercst, amounting TO $77.797 35, and by the pur-
chase of see $50 Of the funded loan of 1907 and
S12.143.150 Of the funded loan Of 1901. at cost
to the fund for premium of 81 672.222 90 on the
former and SS44,2o6 20 on tho latter loan
SURPLUS REVENUE.
In the last annual report II estimated that
the revenues for the year to end June 30 1888.
would exceed the ordinary expenditures, not IN
Guiding the sinking fund by $113yooo00o. 1t will
be from the foregoing statement that such ex-
I'll
more than the Department estimate. 1t was also
estimated in the same report that the like surplus
for the fiscal year to end June 80. 1880, would be
$1O4 .313 ,365 ca Judging from the actual expen-
dtures for first quarter OF this fiscal and In the
light Of receipts and expenditures to the middle Of
November, It is probable that this estimate Will
prove to have been fairly accurate, and that tho
surplus Will almost exactly equal the predicted sum-
remarkable result since IT'S factors were subject
TO all the uncertainties of future revenues and
pendtures to be authorized by Congress not vet
assembled
The accumulated surplus on September 90. 1888.
SOC, 444e45 S4; the surplus revenues from that
date 10 Juno 80 1889, as estimated. are S15,36o
2OS o5. making the total accumulation on June 30
1880, which could be used in the purchase of bonds
s17I sIO.O54 90 however. between said September
90 and November 90. S44,3o9,5o9 so has been paid
for bonds; consequently II no more bonds were
bought between now and Juno 80 next the surplus
would then amount 10 S127 100000 Upon the
basis of appropriations recommended by the De
partment and upon the assumption that the revenues
OF the fiscal years to end juno 30, 1850 and 1890.
will be equal. the surplus for the latter
fiscal year will be SOL 100000, which, with the
surplus revenues Of this year and the surplus al
ready accumulated, make total OF 22SOOOOOO,
which might be used during the next nineteen months
in the purchase Of the interest-bearing debt. and
which ought to be used for that purpose, unless the
tween expenditures and revenue by nearly that sum-
About S1ss, 100000 of the 4 IL per cent bonds
are now outstanding; they payable September
l. 1891 The total amount OF interest which VIII
accrue on them from now until their maturity Is In
round numbers $25 600; consequently the pres
ent surplus and the surplus which will probably
accrue before July l. 1890, will suffice 10 pay the
principal of those bonds and all the interest which
would accrue upon them should they be permitted
to remain unpaid until their maturity.
The principal Of the per cent bonds Is now
$500 900, 900, and the interest which could accrue
upon them until their maturity in 1907 Is ABOUT
$500 900, 000 calculation will show that the pres
ent surplus revenues, II continued. would pay be-
foro 1900 all Of these per cent bonds and all OF
this interest OF course all The money winch Is
saved by purchase of bonds at less than the prin-
cipal and the interest to accrue but shorens the
time when all the bonds may be paid IL The hoiueiS
will surrender them. Nothing more is needed than
the foregoing statement TO show the absolute ne
cessity of readjustment of the public revenues at
the earliest possible date.
That 1t will be necessary TO pay nearly the whole
90 the Interest which will accrue upon the public
debt If an attempt is made to invest the present
surplus revenues in 1t before its maturity Is evident
from the fact that now the Government Is pay
ing for the IL per cent bonds price which re-
Allies only about 1.2 per cent annually anu It.
ceives but meagre offerings of them at that price
proceeds than such investment Is 'cruei waste
Of the peoples money
PURCHASE OF BONDS.
Since the last annual report, and after the COM
n,etion Of the sinking fund requirements for the
wear ended June 30, 1888, no bonds were pougnt
until there had been expression OF opinion py
resolutions In both houses of Congress- tha1 IL was
lawful and proper to invest the surplus IN Dohus o
the premium necessary to obtain them Under the
IN
country upon this question: both as 10
rs legality and propriety. it seemed wise 10 seek
the cooperation of the Congress in this important
matter. l am confident that the delay IN the pur
chase Of bonds while waiting for The congress ~ I to
suited in no substantial pecun.ay loss 10 inc "oVcrh
ment The purchase was resumed under circular
of April IL 1883, and since that tine nearly all inc
bonds which have been offered for sale TO the Gov
eminent have been bought by IT, as Will appear from
an inspection Of the bond-purchase book OF course
many offerings OF bonds have been declined De-
cause the price thought TO be TOO hlGh' out
finally, almost all Of the offered bonds were bought
at some price An example Will show THIS more
clearly Certain bonds Of par value Oi Only
1926 900 were offered SO often that the offerings
aggregated over 49, but they were at last Be-
cured by the Department Ninety four millions OF doais
~ bonds have been secured under this circular, and
a premium paid for the privilege OF buying theIn oi
about S1o 100000 the net rate oil Interest rahhud
from this fnvestm is only about per cent ana
he saving In the total amount Of interest when
would have been paid had the bonds been allowed
% run TO maturity is about $27,0OO,0OO Had tax
,tion been reduced so to leave this money win
he people, and II 1t is worth In their business . |
Der cent per annum, the total value Of tho money
o them during the term which these bonds haa 70
un would be about $4,000, 100 thus, there Is
esulting loss to the people of S3eooooYo upon this
transaction alone Il this overtaxatlon Is not
TONED and If tho Government is forced TO continue
n he purchaser of It's own bonds at the holders
nrces the loss the people, as could be shown py
! like calculation, must be hundreds Oh mihohS u
dollars.
REDUCTION OF TAXATION.
I cannot too strongly repeat my recommendation
~ last year 10 reduce taxation, and, as lar as pos
,ible. without too sudden disturbance OF eAlShR III
erests TO make this reduction in customs taxation 10
The end that the people may got the greatest possible
benefit from the reduction