The sun. [volume] (Morris, Stevens County, Minn.) 1882-1895, 1888-12-13
OUR NATIONAL STRONG BOX.
Abstract Of the volaminous Report OF Mr.. Fair.
child, Secretary of the Treasury.

Abstract OF the vOluminOus Report or Mr.. Fair.
child, Secretary Of the Treasury.
Secretary Fairchild's annual report, sub
mitted to congress, presents conciseiy the
condition of national finances at the close of
the last fiscal year, together with estimates
OF receipts and expenditures for current and
next fiscal years.
The revenues for the present fiscal year,
actual and estimated, ARE placed at $377,-
900 900; expenditures, $273, 1000, 900. For
the next fiscal year he estimates revenues
amounting to 1917, 100000 and expendi-
lures about $271 200, 600. After pI pIesenting
this financial exhibit the secretary briefly
and in a general way, gives his ntten-
tion to the questions of surplus revenue bond
purchases and reduction of taxation. He
calculates that if the laws are changed the
present surplus, together with what will ac-
cumulate up to the close of the fiscal year,
ending June 1890, will aggregate fully $685.
600 900; or sufficient to redeem all the out
standing Az per Genes, now amounting to
$1SS, 900 900, which mature in 1891. The
principal of the per cents outstanding is
| now $3.50, 900 900 and the interests which
would accrue upon them until maturity, in
1907, is about $50O,O00,OOO, and SO the
present surplus revenues, If continued, would
pay before 1900 all these per cents.
Nothing more. the secretary says, is needed
than this statement to show the absolute
necessity of a readjustm ent of public reve-
nues at the earliest possible date. Thatit
will be necessary to pay the whole OF the in
terest which will accrue upon the pubic deOt
if an attempt is made to invest the present
surplus revenues in it, before maturity, is ev
ident from the fact that even now the gov
ernment is paying for the Az per cent. bonds
| price which realizes only about 1h per
cent. annually, and receives but meagre of
ferings of them at that price, To continue
taxation, with no other use for it's proceeds
a an m ia n
the peoples money. And if this over-taxa-
tion is not stopped, and if the governmen
| is forced to continue to be purchaser of it's
bonds at the holders price, the loss to the
people must be hundreds of millions.
81 cannot" the secretary adds, "tOO
strongly repent my recommendation OF last
year to reduce taxation, and az far as pos
sible without too sudden disturbance of
existing interests make this reduction i'll the
customs taxation, to the end that the people
may get the greatest benefit from the reduc-
ton.
Beside the vexed economic question, as to
whether q country can make itself prosper
Gus by tariff; whether it can increase the
relative average comfort of it's whole people
by diverting u portion OF it's labor and capi-
tai from the employments which could be
most profitably followed under natural con-
ditions, thereby making certain OF the
necessaries of life more costly than they
would be otherwise; there is higher moral
| question which may be well asked: Can the
government be kept pure and free which
through the agency of its laws offers vast
pecuniary temptations to some kinds Of busi-
ness?
There are many Indications that this
question must be answered in the negative.
There are many proofs that large classes of
our business men have come to depend for
success on their skill in manipulating gov
| ernment agencies rather than upon industry,
| intelligence and honorable competition.
SIS it not possible that eagerness for the
money which men assume comes to them only
| through the government may lead them to
use an evergrowing proportion of their gains
to possess and influence the supposed source
| of their wealth and will not the endeavor to
make men rich, soon become the chieffilnction
of our government? Is not this already the
| case? If these dangers exist if they are not
| over estimated, and they do exist and are
not overestimated, then can it be doubled
that the true welfare of our people calls for
| the rescue of the government from them as
| speedily as may be?
This can only be done by severing the
| government from private business. Steps
should at once be taken in that direction, al
ways, however, let me repeat, bearing in
| mind the interests which have beco me estab-
lshed under present laws, to the end that
| they may not suffer unduly, while benefcent
| reforms are made"
On the question of silver coming, the secre-
| tary renews his recommendation oflast year:
| That of fixing the maximum of silver which
shall belong to the government, and by pro-
viding that when it was exceeded by $5. .OOO,-
| 900, the purchase of silver bullion should
cease until the amount owned by the gov
| ernment should be again reduced to such
maximum, or by cancelling United States
notes to the amount of the excess over the
maximum, provided the government
held the notes; if not, then by
| ceasing the purchase of bullion. Such
| plan, if adopted, would provide a
safety valve which would be self operative,
and would insure the county against any
| possible danger from silver, for as soon as it
exceeded the amount which can be absorbed
| in the business of the country it would begin
| to flow into the treasury, in payment of
taxes and would stay there until business
called for it and when the governments
| ownership fell below the maximum, the pur-
| chase of bullion would again begin; thus the
| country's business demand would regulate
| the silver circulation. Coin certificates, the
| secretary considers a costly form of money;
but whatever may be thought about the
wisdom of the certificate system, there can
be no doubt that with it the further coinage
of gold and silver except subsidiary coin is
| not necessary, or wise Future accumu-
lation of the precious metals should be only
| in the form of bullion, which can be kept more
| safety and counted more easily than coin.
| If this suggestion was adopted, the secretary
| thinks all but one of our mints might be
closed and large useless expense saved an
nually. The secretary calls attention to the
evils and inequalities of our customs system
| and renews his recommendations of last year.
| looking to their correction.