Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1888-12-07
NATIONAL FINANCES,
THE ANNUAL REPORT OF SECRETARY
OF THE TREASURY FAlRCHlLD.
The Revenues and Expenditures of the
Present Fiscal Year, with the Esti-
mates for the Next Ycar--Fnirchild
on the Reduction of Taxation.

WASHINGTON, Dec. 4.--The annual report
of the secretary of the treasury on the state
of the national finances begins with a state
ment of the receipts and expenditure for the
fiscal year ending June 30, 1888 The total
ordinary receipts from all sources were S3I9-
266, ,O14. IS and the ordinary expenditures
&25D, 653. 95S. 81, leaving surplus of : 49,,
6l2. .ll6.O9. OF this surplus S63, OS3 400. 5l
was applied to the purchase and redemption
of bonds, leaving a balance added to the
cash i'm the treasury of T36. j27. 1lO.5S. As
compared with the fiscal year, 1881, the re-
ceipts of iSSS show an increase Of 81, S62,
101. 10 anda decrease of -, 21S, 221 30 in the
expenditures. The actual and estimated re-
venues for the present fiscal year are 1911
900, 600 and the expenditures for the same
period S273. 900 900, leaving an estimated
surplus, applicable TO the purchase OF bonds
Of flO4 600. 900, The revenues Of the fiscal
year 1850, on the basis of existing laws, arc
estimated at 1871. coo, 600 and the expendi
lures for the same period, including SfG 500
900 for the sinking fund. are estimated at
Tj23.161, 1881, leaving surplus of SOB
1872. 5l1 06, or excluding the sinking fund,
surplus of &l01 232, 511.6G.
PURCHASE OF BONDS.
In speaking of The surplus revenue and
the purchase of bonds Secretary Fairchild
says that about $lSS. 600, 900 of the four and
half per cent bonds ere now outstanding !;
they are payable September /, 1891 The
total amount Of interest which VIII accrue
on them from now until their maturity is in
round numbers T25 900. 900: 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 remain un-
psid until their maturity.
The principal of the four per cent bonds is
now $3.50 000, 900, and the interest which
could accrue upon them until their maturity
in 1907 is about $500. 0G0, 900 n calculatioA%
will show that the present surplus revenues
if continued. would pay before 1900 all of
these four percent bonds and all of this inter
est. Of course all the money which is saw
ed by purchase of bonds at less than the
principal and the interest to accrue but
shortcns the time when all the bonds may be
paid if the holders will surrender them.
Ninetyfour millions of dollars of bonds
have been secured under the circular of April
Il. 1888, and premium paid for the privil-
cge of buying them of about SlS, 600 900
the net rate Of interest realized from this in
vestment is only about two per cent and the
saving in the total amount of interest which
would have been paid had the bonds been al
lowed to run 70 maturity, is about S2i ,0O0.
600. Had taxation been reduced SO as ia
leave this money with the people, and if il i
worth III their business six per cent per an
mum, the total value OF the money TO them
during the term which these bonds had to
run would be about SS3 0O0, 600: thus, there
is resulting loss TO the people of Sj6 600,
OoO upon this transaction alone ; if this over
taxation is not stopped, and ii the govern
mcnt r. forced 70 continue to be a purchaser
OF its own bonds at the holders prices the
loss 70 the geople as could he shown by alike
calculation, must he hundreds of millions OF
dollars.
REDrCTION OF TANES