The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1888-12-05


coived from customs duties and 1924 1885,
8710S from internal revenue taxes. The
total receipts from all sources exceeded
those for the fiscal year ending June 30,
1887, by $7S62, 1910. The ordinary ex-
penditures of the government for the fiscal
year ending June 80, 1888, were $3.50, 653,-
95S6T, leaving a surplus of S119,512, 116.00.
The decrease in these expenditures, as COM
pared with the fiscal year ended June 30,
1887, was SS,27S,2 80, notwithstanding the
payment gilmore than $4,000, 900 for pensions
in excess of what was paid for that purpose
in the latter mentioned year.
The revenues of the government for the
year ending June 30, 1889, ascertained for
the quarter ended September 30, 1885, and
estimated for the remainder of the time,
amounts to S377 600 600, and the actual and
estimated ordinary expenditures for the
same year are 1878, 900, leaving an esti-
mated surplus of S1O4 900. The esti-
mated receipts for the year ending June 30,
1890, are S377 900, 900, and the estimated or
binary expenditures for the same time are
S275761 1881, showing a surplus of S10l,-
232,5l1 The foregoing statements of sur
plus do not take into account the sum neces-
sary to be expended to meet the require
ments of the sinking act amounting to
more than SAT 900, 900 annually. The cost of
collecting the customs revenues for the last
fiscal year was 2.4l per cent, for the year
1885 1t was 3.77 per cent. The excess of in
ternal revenue taxes collected during the
last fiscal year over those collected for the
year ended June 80, 1887, was 5,4S9, ia 26,
and the cost of collecting this revenue de-
creased from "a per cent in 1887 to less than
80 per cent for the last year The tax col
lected on oleomargarine was $685. 04 for
the year ending June 20, 1887, and 1864 139.S IS
for the following year.
THE PURCHASE OF BONDS TO REDUCE THE
SURPLUS.
The requirements of the sinking fund act
having been met for the year ending June
30, 1885, 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, ii was not deemed prudent
to further expend the surplus in such pur-
chases until the authority to do so should
be more explicit A resolution, however,
having been passed by both houses of con-
gress, removing all doubt as to executive
authority, daily purchases of bonds were
commenced on the 23d day 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 in
Guiding the Both day of November 1888,
amounting to S94, 700 400, the premium paid
thereon amounting to S17 sos ,6130S. The
premium added to the principal of these
bonds, represents an investment yielding
about two per cent interest for the time
they still have to run, and the saving to the
government represented by the difference
between the amount of interest at two per
cent upon the sum paid for 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
S27, 165, 600. AT first sight this would seem
to be profitable 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 purchase of
bonds was money drawn from the people in
excess of any actual need of the govern
ment and was expended rather than allow
il 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 business at least six per cent per an
mum. Deducting from the amount of inter-
est upon the principal and premium of the
bonds for the time they had run at the rate
of six per cent the saving of two per cent
made for the people by the purchase of
such bonds, the loss will appear to be $780,
100000 This calculation would seem to
demonstrate that il excessive and unneces-
sary taxation is continued and the govern
ment is forced to pursue this policy of pur-
chasing its own bonds at the premiums
which it will be necessary to pay, the loss
to the people will be hundreds of millions
of dollars. Since the purchase of bonds
was undertaken. as mentioned, nearly all
that have been offered were at last accepted.
1t has been made quite apparent that the
government was in danger of being sub
jected to combination to raise their price,
as appears by the instance cited by the sec
rotary of the offerings of bonds of the par
value of only S326, 900 so often that the ag-
gregate of the sums demanded for their pur-
chase amounted to more than S19,7O0,0O0.
Notwithstanding the large sums paid out in
the purchase of bonds, the surplus in the
treasury on the 30th day of November, 1885,
was S52,234 ,6l001, after deducting about
S26OOO,OO0 just drawn out for the payment
of pensions.
SUSPENSION OF SILVER COINAGE REC
oMMENDED.
AT the close of the fiscal year ended June
20, 1887, there had been coined under the
Compulsory Silver Coinage Act S266, 1888, 2S0
in silver dollars, $50, 504 $40 of which were
in the hands of the people. On the Both
day of June, 1888, there had been coined
$500, 708, 49, and of this 500 ,S29, 1903 was in
circulation in coin and $500, 1887 1916 in silver
certificates, for the redemption of which
silver dollars to that amount were held by
the government. On the Both day of No
vember, 1880, 1912, 679,990 had been coined
$60,970,9 $40 Of the silver dollars were actually
in circulation, and 1927 ,418 346 in certificates.
The secretary recommends the suspension
of the further coinage of silver, and in such
recommendation / earnestly concur. For
further valuable information and timely
recommendations L ask the careful atten-
ton of the congress to the secretary's
report.
THE PENSION OFFICE
The number of pensioners added to the
rolls during the fiscal year ended June 80,
1888, is 60.252; and increase of pensions was
granted in AZ, 7l6 cases. The names of 10, $50
pensioners were dropped from the rolls
during the year for various causes, and at
the close of the year the number of persons
OF all classes receiving pensions was 452.-
J57. OF these there were S06 survivors of
the war of 1872, 10,7S widows of those who
served in that war, 5000 soldiers of the
Mexican war, and 5,l04 widows of said
soldiers. One hundred two different rates
OF pensions are paid to these beneficiaries,
ranging from So to S4l6G6 per month The
amount paid for pensions during the fiscal
year was S79,S7j, S6l %, being an increase
over the preceding year of So, 30S, $50 %.
The expenses attending the maintenance
and operation of the pension bureau during
that period was S3262, 52i67 making the
entire expenditures of the bureau SS2,03S,-
3S6.57 being twenty-one and one-half per
cent of the gross income and nearly thirty
one per cent of the total expenditures of the
government during the year. l am thor
Oughly convinced that our general pension
laws should be revised and adjusted to
meet, as far as possible in the light of our