, 1889-12-05
FINANCES OF THE COUNTRY.
Report OF the Secretary of the Treas
ury Discussed.

rANaNSES VT AhE SOtNlNh'
Report OF the Secretary Of the Treas
ury Discussed.
A general condition of prosperity pre-
walls The harvests of the last summer
were exceptionally abundant, and the
trade conditions now prevailing seem TO
promise successful season to the
merchant and the manufacturer and
general employment to our working
people.
TREASURY REPORT.
The report of the secretary of the
treasury for the fiscal year ending June
80. 1880, has bocn prepared and will be
presented to congress. II presents with
clearness the fiscal operations of the
government and I avail myself of it to
obtain some facts to use here. The
aggregate receipts from all source, for
the year we're 1897 ,050,o5 81, derived as
follows: From customs, $223, ,s32, ,74I 6s /;
from internal revenue, $3.50, ,Ssl, ,5l3 93 4;
from miscellaneous sources, $50, 1898.
s03 q.
The ordinary expenditures for the
same period were $2sl, ,908. Gl5 90, and the
total expenditures, including tho sink
ing funds, were $j20, ,57s,9.,J 20. The cx-
cess of the receipts over expenditures was,
after providing for the sinking funds,
s57, 40, l20. 50. For the current fiscal
year the total revenues. actual and esti--
mated, are $375, 0OO, 900, and the ordinary
expenditures, actual and estimated, are
$203, ,0OO, 900 making with the sinking
fund total expenditure of S33i, 32l, il6.
10, leaving an estimated surplus of s43, =
67s, $50 Of. During the fiscal year there
was applied to the purchase Of bonds, in
addition to those for the sinking fund,
800, i53, l72 35, and during the first quar-.
ter OF the current year the sum of S37, q.
S38, ,037 II, all of which were credited tn
the sinking fund. The revenues
for the fiscal year ending July 30,
1901, are estimated by the
treasury department at $385, 100,
600, and the expenditure of the same
period, including the sinking fund, at
$34i, $50, AT 10. This shows an esti-
mated surplus for that year OF $4S, 26o,
522 20, which is more II kelly to be in
creased than reduced when the actual
transactions are written up.
THE SURPLUS.
The existence OF so large an actual and
anticipated surplus should have the inl-
mediate attention OF congress, with a
view to reducing the receipts of the
treasury to the needs of the governm mcnt
as closely as may he. The collection OF
moneys not needed for public uses i'm
poses an unnecessary burden upon our
people, and the presence of so large q
surplus in the public vaults is disturb
ing element In the conduct of private
business. 1t has called into use cxpedi.
cnts for putting 1t into circulation OF
very questionable propricty. We should
not collect revenues TOR the pur-
pose of anticipating our bonds
the sinking fund. But any unappro.
priated surplus in the treasury should
be SO used, as there is no other lawful
way of returning the money to circula.
ton, and the profit realized by the gov
crnmcnt offers substantial advantages.
Tho loaning of public funds to the
banks without interest, upon the secur-
ity of government bonds, regard as ar
unauthorized and dangerous cxpedient
1t results in temporary and unnatural
increase OF tho banking capital of fay.
orcd localities, and compcls q caution.
and gradual recall of the deposits &c
avoid injury to the commercial iuter-
banks having these deposits will sci
their bonds to the treasury, sc
long as the present highly beneficial
Arrangement Is continued. They nov
practically get interest both upon the
bonds and their proceeds. No further
use should be made OF this method o
getting the surplus into circulation. aud
the deposits now outstanding should bt
gradually withdrawn and applied to tho
purchase of bonds. II Is fortunate that
such use can be made of the existing
surplus, and for some time to come o
any casual surplus that may exist attel
congress has taken the necessary step.
for d reduction of the revenue. Such
legislation should DO promptly but yer,
CONSIDERABLY enacted.