St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-12-04

take into account the sum necessary to
be expended to meet the requirements
of the sinking fund act, amounting to
more than S47,000.000 annually. The
cost of collecting the customs revenues
for the last fiscal year was IA 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 for the year ended June
30, 1887, was $3.50. l74.26, and the cost
OF collecting this revenue decreased
from 3.4 per cent in 1887 to less than to
80 per cent for the last year. The tax
collected on oleOmargarine was $685.
q4S.04 for the year ending June so, 1887,
and 1854, 139.SS for the following year.
PURCHASES OF BONDS.
The requirements of the sinking fund
act have been met for the year ended
June so, 1888, and for the current year
also by the purchase of bonds. After
complying with this law, as positively
required and bonds sufficient for that
purpose had been bought at premium
it was not deemed prudent to further
expend the surplus in such purchases
until the authority TO do so should be-
more explicit. A resolution, however,
having been passed by both houses Of
congress removing all doubt as to exec.
utive authority, daily purchased OF
bonds were commenced on the Esd dav
of April, 1888, and have continued until
the present time. BY this plan bonds
OF the government not yet due have
been purchased up to and including the
30th day Of November, 1855, amounting
to S4, 700, 400, the premium paid thereon
amounting to SIT sos, 613.0S.
The premium added to the principal of
these bonds represents an investment of
about 2 per cent interest for the time
they still had to run, and the saving Ia
the government represented by the diff.
ference between the amount of interest
at per cent upon the sum paid for
principal and premium and what il
would have paid for Interest at the rate
specified in the bonds if they had run to
their maturity is about $27, 165, 900. IA
first sight this would seem to be profit
able and sensible transaction on the
part Of the government, but, as Sug-
geSted by the secretary of the treasury,
the surplus thus expended for the pur-
chase OF bonds was money drawn from
the people in excess of any actual need
OF the goyernment,and was so expended
rather than allow it to remain idle in the
treasury. Ii this surplus, under the
operation of just and equitable laws, had
been left i'll the hands of the people it
would have been worth at least per
cent per annum. Deducting from the
amount of interest upon the principal
and premium of these bonds for The
time they had to run at the rate of 6
per cent the saving of per cent made
for the people by the purchase of such
bonds, the loss will appear to be S55,-
100000.
1T Is LOCALIZED ROBBERY.
This calculation would seem to dem.
OnStrate that if excessive and unneceSs
sary taxation is continued and the gov
eminent is forced to pursue this policy
of purchasing its own bonds at the
premiums which it will be necessary to
pay, the loss to the people will be hum
dreds of millions of dollars. Since the
purchase of the bonds was undertaken
as mentioned, nearly all that have been
offered were at last accepted. 1t has
been made quite apparent that the gov
eminent was in danger of being SUBJ
jected to combinations to raise their
price. as appears by the instance cited
by the secretary of the Offering of bonds
OF the par value of only S326,000 so often
than the aggregate of sums demanded
for their purchase amounted to more
that S19.700,000. Notwithstanding the
large sums paid out in the purchase Of
bonds, the surplus in the treasury
on the 4th day Of November,
1883. was So, 234 5000, after de-
Quoting about s2O,OO0,0OO just drawn
out for the payment of pensions.
At the close of the fiscal year ended
June so, 1887, there had been coined
under the compulsory silver coinage act
S266, 1888, $50 in silver dollars. $50, 504,310
of which were in the hands of the peo-
pie. On the Seth of June, 1883, there
had been coined 5000, 70S, roo, and of this
S55, S29. 1908 was in circulation in coin
and 5000, 3S7, $40 in silver certificates, for
the redemption of which silver dollars
to that amount were had by the govern
ment.
On the 30th day of November, 1883,
S312 $50, 800 had been coined, $50, 970,9 800
of the silver dollars were actually in
circulation. and $237, ,346 in ccrtii-
Gates.
SILVER COINAGE SHOULD BE STOPPED.
The secretary recommends the Sus-
pension of the further coinage of silver,
and in such recommendation earnestly
concur. For further valuable infOrma-
ton and timely recommendations | ask
the careful attention of congress to the
secretary's report.