The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1888-12-13
FAiRchILD ON FINANCE.

FAtRChtIO ON FINANCE.
Operations Of the Treasury Department
Detailed in the sscretary's Annual Re-
port-Enormous Receipts and Expend-
itures-ComInent on the Surplus, bonds,
silver Coinage. Foreign Commerce. Etc.
WASHINGTON, Dec 5. The annual report OF
the Secretary OF the Treasury begins with an
exhibit OF receipts and expenditures for the
fiscal year 1sSS together with detailed list OF
the uses to which the surplus revenue was APP
Piled The ordinary revenues OF the Govern
ment from all sources in the fiscal year ended
June 30 1859, were s37a. .a66,O74s6. The ordi-
ssssssa xss7. This Ief. a surplus Of sllesis,.
1862. After expending a portion OF the sur
plus in ways provided for by law there was
left balance added TO the cash in the Treas.
ury of s36, 52s, 1l05s The receipts OF 1888 ex-
cceded those OF 1885, by r. 8G2, 1gT. 10. OF which
6473, 8i0.16 was internal revenue and sl,S04.-
$3.50 customs. There WAS decrease in the
ordinary expenditures Of rs, zss, 221.a.
For the year 1890 the total receipts are csti-
mated, upon the basis Of existing iaws, at s3.7,-
100000, and the total expenditures, including
plus for that year OF $53 432, ,5ll.66, or exclud.
Ing the sinking fund, el0l, z3. ,51l.66. The re-
quirements of the act OF February y. 1867 tR.
s., 3,6ss t69). establishing sinking fund for
the gradual extingushment OF the public debt,
estimated for the current fiscal year at sd1,-
$50, ZOO, have been thus far met by the redemp-
bonds of the United States which had ceased
to bear interest amounting to $11.791.35. and
by the purchase OF $-6.S39,650 OF the funded
OF 1891. AT a cost TO the fund for premium OF
S7.6.2, 70 on the former and ssi4 2O6. % on
the latter loan.
THE STEADILY AccUMrLATING SURPLUS
In the last annual report IL was estimated
that the revenues for the year to end June 30,
1883, would exceed the ordinary expenditures,
not including the sinking fund, by sllaOOo, ,ove
Such excess was in reality a1laGl2, 1863. or
t6, 612. 1860 more than the department esti-
mate. 1t was also estimated in the same re-
port that the like surplus for the fiscal year to
end June 80, 1889, would be Sl04. .313, ,365. 81.
Judging from the actual expenditures for the
first quarter OF this fiscal year, and in the light
OF receipts and expenditures to thu middle OF
November, it is probable that this estimate
will prove to have been fairly accurate. and
that the surplus will almost exactly equal the
The accumulated surplus on September %. 1883,
was e96, ,44A.Si5.Si: the surplus revenues from
that date to June 30, 1889, as estimated, are E5,
365, 20S 25, making the total accumulation on
June 10, 1SS9 which could be used in the purchase
of bonds, t17l $40 054.09J: however, between said
September % and November 2. "a, 399, 500 so
has been paid for bonds; consequently II no
June 30 next the surplus would then amount to
s121 co., 900. Upon the basis of appropriations
recommended by the Department, and upon the
assumption that the revenues Of the fiscal
years TO end June 80. 1889 and 1890, will be
equal, the surplus revenues for the latter fiscal
year will be tlol, ,OO0,0D. which, with the sur
ready accumulated, make a total of e.as, ,O00,.
600, which might be used during the next nine
teen me nths IN the purchase of the interest
be airing debt, and which ought to be used for
as to reduce the difference between expendi-
lures and revenue by nearly that sum.
About tisA0A0O) OF the AZ per cent. bonds
are now outstanding; they are payable Septem-
Der /, 1891. The total amount OF interest which
will accrue on them from now until their ma.
turity is in round numbers ts5, ,OOo, ,0OO conse-
nrnS fha c,1rpy 70
which will probably accrue before July l, 1890,
wll suffice to pay the principal OF those
bonds and all the interest which would
mitted to remain unpaid until their ma
turity. The principal OF the per cent bonds
is now $3.50, coo CO., and the interest which could
accrue upon them until their maturity in 1907
is about s5Ou,0O0,0O9; q calculation will show
that the present surplus revenues. il contin.
ued, would pay before 1900 all of these per
oil the money which is saved by purchase oil
bonds at less than the principal and the inter.
crest to accrue but shortens the time when all
the bonds may be paid IL the holders will sur.
render them.
WASTE OF PUBLIC MONEY CONDEMNED.
Nothing more is needed than the foregoing
statement to show the absolute necessity of i
readjustment OF the public revenues at the
earliest possible date. That IT will be neces
sary to pay nearly the whole OF the interest
which will accrue upon the public debt il an a..
tempt is made to invest the present surplus
revenues in it before It's maturity is evident
from the fact that even now the Government Is
paying for the -. per cent. bonds price which
realizes only about Ia per cent. annually and
receives but mcager offerings OF them at that
price. To continue taxation with no other uss
for its proceeds than such an investment is
cruel waste OF the peoples money.
! BOND PURCHASES
The purchase Of bonds was resumed under /;
| circular of April Il, lsss and since that time
nearly all the bonds which have been offered
| Tor sale TO the Government have been bought
| by 1t. Ninety-four millions OF dollars of bonds
have been secured under this circular, and
premium paid Tor the privilege of buying them
| OF about tlSOOO.OOU; the net rate of interest
| realized from this investment is only about
per cent. and the saving in the total amount
| OF interest which would have been paid had
maturity, is about s2aOOO,o0o Had taxation
| been reduced so as to leave this money will
the people, and If, II is worth in their busines.
| per cent. per annum, tho total value of the
money to them during the term which these
bonds had TO run would be about Ss3. 600 90
| thus. there Is resulting loss to the people o
s56O0O,O 900 upon this transaction alone; II thi.
| oyertaxation is not stopped, and If the Govern
ment is forced to continue to be q purchaser O
| its own bonds at the holders prices, the loss
/ to the people, as could be shown by like cal
culaton, must be hundreds OF millions o
dollars
URGING TARIFF REDUCTION.
The Secretary repeats his recomm endatior
| OF last year to reduce taxation, and as far a!
| possible, without too sudden disturbance o
| existing interests, to make this reduction il
customs taxation. TO the end that the people
| may get the greatest possible benefit from III,
reduction. BESIDES the vexed e.oncmc G ques
| tiOn rs TO whether Il country caa make Iisel
| prosperous by tariff. there IS 8 higher mora
| question which may well be asked, aud that is
Can Government be kept pure and fire,
which, through the agency Of its laws, ofier
| vast pecuniary temptations to some kinds o
| OusineSss
There are many indications that this ques
| tion must be answered in the negative. Ther,
| are many proofs that large classes OF our bus
ness men have come to depend for success
| upon their skill in manipulating Governments
| agencies rather than upon industry. intelli
| gence and honorable competition. Is 1t no
possible that eagerness for the money which
| men assume comes to them only through
| government may lend them to use Al
evergrowing proportion OF their gains t,
possess and influence the supposed sourc,
OF their wealth. And will not the en-
| deavor to make men rich soon becom
| the chief function OF our Governments Is no
this already the case. II these dangers exist
| II they are not oeerestimated, and they do ex
| ist and are not overestimated, then can it b
| doubted that the true welfare OF our peopl
| calls for the rescue OF the Government fron
! them as speedily rs may be:
This can only be done by severing Govern
ment from private business. Steps should a
| once be taken in that direction. always. how
! which have become established under presen
laws, to the end that they may not suffer un
duly while beneficent reforms are made.
THE CIRCULATION.
| shows net decrease as compared with July
| 1887, OF 40, GIG; the money and bullion he'll
| in the Treasury showing an increase of $l01
| 40. 4a3 for the same period. As was the cas-
| last year the increase in circulation this yea
has been in the form OF small money The In
| crease OF outstanding paper and coin in demon
nations OF I'D and less Is more than S1l5, 900
| OOo. thus exceeding the total increase of clrcu
| latlon among the people by about 81, ,00o. .0u
| and showing . conversion OF larger into small
er denominations to that extent.
/ s.sE
The Secretary says silver seems to have file
| the vacancy caused by the retirement OF Ma
| tional bank circulation The circulation me
dium in small denominations has been largel
| converted into silver certifiea es. And, finally
business has largely increased in the Soutl
and in portions of the country where there ar
| few banking facilities. All of these cause
have co-operated to postpone any evil effect
| which might arse from u continued an
| excessive coinage OF the silver dol
lar; but the danger still exists. MI,
| should be guarded against This can be don
| by the adoption of the recommendation O
| my last report, viz, by fixing the maxlmuIa O
| silver which shall belong to the Governm sn,
| and by prov ding that when 1t was exceeded b.
| eS,0W,U00 the purchase Of silver bullion shoul(
cease until the amount owned by the Govern
ment should be again reduced to such max
| imum, or by canceling United States notes L
| the amount OF the excess over the maximum
| provided the Government held the notes: II not
| then by ceasing the purchase OF bullion under