Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1888-12-05
GOVERNMENT FINANCES.
Report of the Secretary of the Treasury
for the Year.


for the Year.
The report of the Secretary of the Treasury ex-
hibits in detail the condition of our national
finances and the operations of the several
branches of the government related to his de-
partment. The total ordinary revenues of the
government for the fiscal year ended June 80,
1883, amounted to 1919 266 074.76. of which S2l9,
091 ,173.63 was received from customs duties and
$124, 296, 81 98 from internal revenue taxes. The
total receipts from all sources exceeded those for
the fiscal year ended June 30, 1887, by $780,
1910. The ordinary expenditures OF the fiscal
year ending June 80. 1888, were 1888, 653, 99S 81
leaving surplus Of s11s,6l2, 1862 The decrease
in these expenditures as compared with
1887, was SS,27S 900. So Notwithstanding the
payment of more than S5,0OO,000 tor pensions in
excess of what paid tor that purpose in the
the latter mentioned year
The revenues of the government for the year
ending June 80, 1889, ascertained for the quarter
ended September 80, 1888, and esIlmeted
for the remainder of the time, amount to S377,-
000 900, and the actual estimated ordinary eX-
pendiures for the year are are Soo 6 600
The estimated receipts for the year ending
June 3d. $780, are 1877 600 900, and the estimated
ordinary expenditures for the same time are
51i Sc.
The foregoing statements of surplus do not take
into account the sum necessary to be expended
to meet the requirements OF the sinking fund
act, amounting 10 more than S47,O00,OU0 an
nually
the last fiscal year was 2.44 per cent For the year
1885 it Was 377 per cent The excess of internal
revenue taxes collected during the last fiscal year
over those collected for the year ended June 80,
1887 was $3.50 ia g. and the cost of collecting
this revenue decreased from 34 per cent in 1887
to less than 20 30 per cent for the last year The
tax collected oleomargarine was S723 948 04 for
the year ending June 80 1887 and 1864, 139 SO for
the following year.
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 posi-
lively required, and ponds sufficient for that
purpose had been bought ct prem ium, it was
not deemed prudent to further expend the sur
plus 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 al doubt as 10 executive authority,
daily purchases of bonds were commenced on
the 18th day OF April, 1888, and have continued
the government not yet due have been purchased
up to and including the 3Oth day of No
vember. 1888, amounting to S94 700, 400, the pre-
MUM paid thereon amounting to S175OS, 613 o..
The premium added to the principal of the
bonds represents an investment yielding about 3
per cent. interest tor the time they still had to
run, and the saving TO the government represent
ed by the difference between the amount of in
terest at per cent. upon the unpaid principal
and premium and what it would have paid for
interest at the rate specified in the bonds if they
had run to their maturity, is about $27 jos, 600.
At first sight this would seem to be proftab BILE
and sensible transaction on the part OF
the government, but as suggested by the
secretary of the treasury, the surplus thus ex-
pended for the purchase of bonds was money
drawn from the people in excess of any actual
need of the government and was SO expended
rather than allow to remain idle in the treasury
If this surplus, under the operation of just and
equitable laws, had been left in the hands of the
people it would have been worth in their busi-
ness 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 per cent, the saving
of per cent. made for the people by the pur-
chase of such bonds, the loss will appear to be
s5576O,C00. This calculation would seem to
demonstrate that If excessive and unnecessary
taxation is continued and the government is
forced to pursue this policy of purchasing its
OWE bonds at the premiums which 1t will be
necessary to pay, the loss to the people will be
hundreds of millions OF dollars. Since the pur-
chase of the bonds was undertaken as mentioned
nearly all that have been offered were at last &C.
copied. 1t has been made quite apparent that
the government was in danger Of being subjected
to combinations to raise THEN price.
Notwithstanding the large sums paid out in the
purchase OF bonds, the surplus in the treasury on
the 30th day of November 1888. was So 254 6iOO1,
after deducting about 500, 900 just drawn out
for the Daymont OF DensiOnS