Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1888-12-13
THE TREASURY.

THE TREASURY.
Annual Report of the Secretary OF the
Treasury-His Views Regarding tho Sur
WASHINGTON Dec. 4-The annual report OF
Charles s. Fairchild, Secretary Of the Treas
ury, Is made public. 1t shows that the ordi-
nary revenues of the Government from all
sources during the fiscal year ended June 30,
1855 were 1871. 266, 07476 ordinary expenditures
&359653. 958.76; surplus, s119,6l2, 1900; bonds
purchased, including premium of s2e52,01o.8S
81, 5s7. $3.50; expended in redemptions and
funded loan purchases. 1885,, 23963: balance In
treasury. &6,527. 1888. The increase in TO
ceipts was "a 862, 797. 10; decrease in expendi-
lures. s8,2S6221. 80.
For the fiscal year ending June 30, 1889. the
actual and estimated revenues are 1877 OOOoOO;
expenditures. actual and estimated, S2sS,OOO,O0c:
estimated surplus, S14,OOO,OOO.
The estimates for the fiscal year ending juno
%, 1890, are: Revenues. 1877 ,O00.0oo; expendi-
lures, including sinking fund. $S23, 567 1881;
surplus, &o3 49,, 51166; surplus, including sink
ing fund e1O1, 2 2511.6S.
On the question of the surplus the Secretary
says: I'm the last annual report it was esti-
mated that the revenues for the year to END
June 30. 1888, would exceed the ordinary ex-
penditures, not including the sinking fund, by
1l13O0lOOO. It will be seen from the foregoing
statement that such excess was In reality sl19,-
6l2 1860, or 3i,612 1869 more than the depart
ment estimate. 1t was also estimated in the
same report that the like surplus for the fiscal
year to end June 30, 1879, would be e104 3d..
1864 Judging from the actual expenditures
for the first quarter OF this fiscal year, and in
the light of receipts and expenditures to the
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 predicted sum, a remarkable result since
1ts factors were subject to all the uncertainties
OF future revenues and OF expenditures TO be
authorized by Congress not vet assembled.
1.-The accumulated surplus September %
1888, was e96 444, 845. 81; the surplus revenues
from that date to June 80, 1889, estimated
are $75.365, 2O3.25, making the total accumula
ton on June 30 1899, which could be used for the
purchase OF bonds, &171, 81O, o54.09: however be
tween said September 28 and November 2:
"a, 500. 509.5 has been paid for bonds; con
sequently II no more bonds were bought be
tween now and June 30 next the surplus would
then amount to 127. 100000. Upon the basis OF
appropriations recommended by the depart
ment and upon the assumption that the
revenues of the fiscal year to end June 80, 1885,
and $780, will be equal. the surplu revenues for
the latter fiscal year will be sl01 ,OOiOOO which.
with the surplus revenues OF this year and the
surplus already accumulated, make a total OF
e228 0CO. 90, which might be used during the
next nineteen months in the purchase OF the
interest bearing debt, and which ought to be
used for that purpose, unless che laws are SC
changed as to reduce the difference between
''About $l8SOO 900 OF the Al per cent. bonds
are now outstanding They payable Sep
TENDER l, 1891. The total amount OF interest
which will accrue on them from now until their
maturity is in round numbers S25, 90 900; con-
seQuently the present surplus and the surplus
which will probably accrue before July 1, 1890,
will suf1ce to pay the principal Of those bonds
and all the interest which will accrue upon them
should they be permitted to remain unpaid I'M
til their maturity.
"srhe u, incDal n the Der cents is now $3.50
coo 600 and the interest which would accrue
upon them until their maturity in 10 z is about
80 ,OOO,O a calculation will show that the
present surplus revenues il continued would
pay before 1907 all of these per cent bonds and
all OF this interest. OF course all of the money
which is saved by the purchase of bonds at less
than the principal and interest to accrue but
shOrtens the time when all the bonds may be
paid If the holders will surrender them.
Nothing more is needed than the foregoing
statement to show the absolute necessity of a
readjustment Of the public revenues at the
earliest possible date. That it win be neces.
which will accrue upon the public debt il an at
tempt is made to invest the present surplus
revenues in it before its maturity i evident
from the fact that even now the Government is
paying for the Az per cent. bonds price which
realizes only about u per cent. annually, and
receives but meager offerings of them ut that
price. To continue taxation with no other use
for its proceeds than such an investment is q
cruel waste or the peoples money"
Regarding the purchase OF bonds he says
"Since the last annual report and after the COM
pletion OF the sinking fund requirements for the
year ended June 30. 1885, no bonds were DO ght
until there had been an expression OF opinion
by both houses OF Congress, that it was lawful
and proper to Invest the surplus in bonds at
the premium necessary to obtain them. Under
the then state OF public opinion in many parts
Of the country upon this question, both as to its
legality and propriety, 1t seemed wise to seek
no Hn- Of he C0n0 in &c
tant matter am confident that the delay in the
purchase OF DO DIS while waiting for Congress to
act resulted in no substantial pecuniary loss to
the Government. The pur base was resumed
under circular OF April II, 1883, and since that
time nearly all the bonds which have been Of
fered for sale to the Government have been
bought by 1t. as will appear from an inspection
OF the bond purchase book Or course many
offerings of bonds have been declined because
the price was thought to be too high, but finally
almost all Of the offered bonds were bought at
some price. An exam. lie will show this moro
clearly. Certain bon's OF par value of only
SS26EO were offered so often that the offerings
aggregated over S19.7 20. OOO but they were at
Ia secured by the department. Ninety-four
millions OF dollars of bonds have been secured
under this circular; and premium paid
for the privilege of buying them of
about S1B, co., 600: the net rate of interest
realized from this investment is only about
two per cent. and the saving in the total
amount of interest which would have been
paid had the. bonds been allowed to run to
maturity, is about 81, OO0, 600 Had taxation
been reduced 50 as to leave this money with the
people, and il. it is worth in their business six
per cent. per annum, the total value OF the
money to them during the term which these
bonds had to run would be about $4,000 GOO:
thus there is resulting loss to the people OF
$50, 0OOC COO upon this transaction alone: if this
oyertaxation is no: stopped and il the Gov
eminent is forced to continue to be a purchaser
OF its own bonds at tho holders prices, the loss