The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1888-12-04
DOMESTIC AFFAIRS.

DOMESTIC AFFAIRS.
FINANCES, PENSIONS AND EXPENDITURES
NEEDED LEGISLATION.
Preparations for the centennial cele-
bration April 80, 1889, of the inaugura-
ton OF George Washington as presi.
dent of the United States at the city
of New York, have been made by a
voluntary organization of citizens of
that locality, and, believing that OPP
portunity should be afforded for the
expression OF the interest felt through
out the country with this event, / re-
spectfully recommend fitting and CO.
operative action by congress in behalf
of the people of the United States.
THE TREASURY.
The report of the secretary of the
treasury exhibits in detail the condi-
ton of our national finances and the
operation of the several branches OF
the government related to his depart
ment. The total ordinary revenues of
the government for the fiscal year
ending June 80, 1888, amounted
to S279, 266,S74 rs, of which $2i9,-
09l ,l73 90 was received from
customs duties and S124 ,295. 671 %
from internal revenue taxes.
The total receipts from all sources ex-
ceeded those for the fiscal year ended
June 80, 1887, by 1882, 797 10. The
ordinary expenditures OF the fiscal
year ending June 80, 1888, are $3.50
653, 95S 81. leaving a surplus of $ll9,-
6l2, JIG %. The decrease in these ex-
penditures, as compared with the
fiscal wear ended June 30, 1887, was
s., 27s 900 80, notwithstandingth pay
ment of more than $500 900 for pen
sions in excess of what was paid for
that purpose in the aforementioned
year. The revenues of the government
for the year ending June 80, 1859, as
ascertained for the quarter ending
Sept. so, 1888, and estimated for the
remainder of the time. amount to
S377 900 900, and the actual estimated
ordinary expenditures for the same
year are $273, 000, 900, leaving an esti-
mated surplus of $l04 900, 600.
The estimated receipts for the year
ending June so, 1890, are $377 900 900,
and the estimated ordinary expendi-
lures for the same time are $275, 767, :
ass 81, showing a surplus of SOL ,232. :
5l1 IS. The foregoing statements of
the surplus do not take into account
the sum necessary to be expended to
meet the requirements OF the sinking
fund act, amounting to more than
$67 900 900 annually. The cost of col
lecting customs revenue for the last
fiscal year was 2.44 per cent. for the
year 1885 it was 3.77 per cent.
The excess of internal revenue taxes
collected during the last fiscal year
over those collected during the fiscal
year ending June 80, 1887, was S., ass. :
Ia O6, and the cost of collecting this
revenue decreased from "a per cent in
1887 TO less than 80 per cent. for last
year. The tax collected on oleomar-
garine was S723 9iS OF for the year
ending June 80, 1887. and 1854, I39 SO
for the following year.
BOND PURCHASE.
The requirements OF the sinking
fund have been met for the wear
ended June 30, 1883. and for the cur
rent year also by the purchase oil
bonds. After complying with the law
as positively required, and bonds suf.
tlcient for that purpose had been
| bought at a premium, it was no;
deemed prudent to further expend the
surplus in such purchases until au-
thority to do so should be more ex-
| plicit. A resolution, however, having
been passed by both houses OF
congress, removing all doubt as to
executive authority, daily purchases
/ OF bonds were commenced on the 23d
OF April, ISIS, and have continued I'M
! til the present time. By this plan
/ bonds of the government not vet due
have been purchased up 10 and in
Guiding the Both of November, 1883,
amounting to SeL700, 400, the prem
ium paid thereon amounting TO
1 ST. sos ,6l3.
The premium added to the principal
| of these bonds represents an invest
ment yielding about per cent. inter
est for the time they still had to run,
and saving to the government repre-
sented by the difference between the
amount of per cent. on the sum paid
/ for principal and premium, and what
/ it would have paid for interest at the
| rate specified on the bonds if thew run
| 10 maturity, or about S3,7l6, 500. At
| first sight this would seem to be a
| profitable and sensible transaction on
the part of the government, 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
/ actual need OF the government, and
was expended rather than 10 allow il
| to remain idle in the treasury. II this
surplus, under the operation of just
and equitable laws. had been LETT in
/ the hands of the people, il would have
! benefited them in their business at
least s per cent. per annum. Deduct
| ing from the amount of the interest
on the principal and premiums OF
these leans for the time thew had to
! run at 6 per cent. The saving Of 2 per
cent made for the people BY the pur-
chase Of such bonds, the loss will ap-
pear TO be s. $40 600.
This calculation would seem to
demonstrate that If excessive and I'M
necessary taxation is continued and
the government i forced To pursue the
policy of purchasing too often bonds
at the premiums which il will be
neces Sary 10 pay, the loss TO the people
will he hundreds OF millions of dollars.
Since the purchase Of bonds was under
taken as mentioned, nearly all that
have been offered were at last &C
cepted. Ii has been made quite ap-
parent that the government was in
danger OF being subject 10 combine"
to raise their prices, a. appears by the
instance cited BY the secretary, OF
the offering of bonds OF the par value
Of only SS326 50 often that the
aggregate of the sums demanded for
their purchase amounted to more
than $40. 200, 600. Notwithstanding the
large sums paid out in the purchase
OF bonds, the surplus in the treasury
on the 30th OF November, iss7. was
sl2.2S4,7lo Oh, after deducting about