The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1889-12-07
WINDOWS REPORT.
Some Suggestions or tie Secretary
Of tke Treasury.
REPEAL OF THE TOBACCOTAX FAVORED
His Views on the Tariff, the surplus and
National Banking system - Plans
for Solving the silver
Problem.
THE TREASURY.


ry revenues of the Government from all sources
for the fiscal year ended June 30, 1889, were
1857 05O, 05SSi, and the expenditures S2Sl $685.
as. 90, leaving a surplus OF sl05,Oo3, 1924.
OF this there was used for the redemption OF
notes and fractional currency and purchase OF
bonds 81, 5S8 1895, leaving net surplus OF
t57, 40, 1889 for the year. For the present
year the revenues actual and estimated, are
k3SS, 10000 and the expenditures s2a3, 10000.
The estimated amount required for the sinking
fund is $is,G 1862, leaving net surplus Of
IA, 67S SS3.0l.
During the fiscal year 1889 there was applied
to the redemption OF the public debt SgO,919 i27.
The total amount received from customs the
last fiscal year was S,23, az, ,4l69, showing an
Increase over the year 1888 OF ~, al 56S.O6, and
being the largest amount ever received in any
one year from that source.
The total net receipts from internal revenue
for the fiscal year 1889, rs shown by the books
Of the Treasury, were sl3O, ssi, 5l392, being an
Increase over the year 1883 of 1854, 64i.94.
During the twelve months ended October 81,
1885, there were purchased under the circular
Of April II, 1885, United States bonds TO the
amount of 500 233,o5O. OF these, So, 27o, 400
were obtained prior to March 1, 1889, and $685.
p54, $50 after that date.
THE SURPLUS
The Secretary thinks part OF the surplus
might be used in enlarging our foreign markets,
strengthening the coast defenses and building
up the navy The expedient of purchasing
bonds is of doubtful wisdom, he says, be-
cause II is manifestly wrong to take money
from the people for the cancellation OF bonds
to the saving Of only about per cent interest,
when 1t is worth to them, perhaps, three times
as much in their business. 1t is rather through
a reduction of customs receipts and internal
taxes that an unnecessary accumulation OF
money in the Treasury should be avoided.
THE TAX ON TOBACCO.
A table is given showing that the total tax
on tobacco was S9i, s6S, S9753. Mr.. Window
adds whatever may be said Of the moral or
physical effects and influence of tobacco 1t
has come to be regarded rs necessity by the
poor as well as the rich. 1t is now the only
product of agriculture that is directly taxed by
the Government. The repeal of this tax would
reduce the surplus about SsOOO,0OO."
The exemption of alcohol used in the arts, tho
tax on which is an onerous burden for which
there seems neither necessity nor excuse, would
strike off &,50O,00O more.
TARIFF REVISION.
'There Is u general agreement" says the
Secretary, "that revision OF the tarin and
customs laws is urgently needed. believe 1t to
be the dominant sentiment OF tho country that
In the adjustment of duties on imports protec-
tion to home industry should be governing
consideration. While there Is q wide divergence
Of Judgment on this proposition 1t can not well
be denied that 1t is the settled policy Of this
Government that such duties shall be so levied
as to result in the protection OF labor employed
in domestic industries from destructive foreign
competition.
The Secretary recommends that the many in
eQualities, conflicting provisions and ambigui-
ties in the present law be corrected, and that
uniformity Of assessment at the various ports
be secured il possible.
EXPORTS AND IMPORTS.
The total value OF our imports and exports OF
merchandise and specie during the last fiscal
year was 81 613 1877 G33 an increase over the pre-
ceding year of SS7473si3, and was greater than
for any year since 1884
The total value of exports Of domestic mer-
chandise was $3.50 2S Coz for the fiscal year 1889,
an increase of 6,i205O5 over the preceding
year, and was greater than that of any year eX-
cept 1880, 1881, 1882. 1893.
SILVER COINAGE.
On the question of silver coinage the Secre-
tary saws: 1.-The continued coinage OF the silver
dollar at constantly increasing monthly quota,
Is disturbing element In the otherwise excel
lent financial condition of the country ana u
positive hindrance TO any international agree
ment looking to the free coinage Of both metals
III uAtu Tdllb MdINitblN pui'Ae'N' ~ ''''
Government of stated quantities OF silver
and mandatory coinage of the same
into full legal-tender dollars are an I'M
precedented anomaly and have proved fu-
tile not only in restoring the value OF silver,
but even in staying the downward price
OF that metal Since the passage OF the act
OF February 2s, 1873, to November |,
1885, there have been purchased 800 SS9,
al6l standard ounces OF silver, at cost
OF S2s6 $50 6E36i, from which there have
been coined 3l3,63S,oOl standard silver dollars.
There were in circulation on November Of the
present year 6O09S 40 silver dollars, less than
81 per capita the remainder 2S3 530, 521, being
stored away in Government vaults, OF which
e277 $40 ga were covered by outstanding certin
Gates"
No proper effort has been spared by the
Treasury Department, says the Secretary, To
put In circulation the dollars coined under TINS
law, but without success and the point mas
been or soon will be- reached where the further
coinage of silver win become waste OF public
money.
After specifyng the various causes OF the
depreciation of silver, the Secretary says II
is unqucstionably true that public sentiment
and commercial and industrial necessity de
mand the Joint use of both gold and silver as
money Neither can be discarded without the
most serious consequences, but tho great
change In the market value OF the two metals
and the steady depreciation Of silver arouse
grave apprehensions The faith and power OF
the Government are pledged 10 make the silver
dollars equal to their facc value, and so long as
their number is kept within proper limits they
will be maintained at par with gold, but the
laws Of trade win eventually assert their pow
er. The problem IS therefore, says Mr.. win
dom, how we shall use both gold and silver.
He briefly considers the various solutions OF
fered and points out objections to them. The
Secretary then makes the following important
recommendation:
Issue treasury notes against deposits of sill
yer bullion at the market price OF silver When
deposited, payable on demand In such quaint
ties OF silver bullion as will equal IN value, al
the date OF presentation, the number OF dollars
expressed on the face OF the notes ut the mar
ket price OF silver or in gold AZ the option OF
the Government, or in silver dollars ut the op
tion OF the holder. Repeal the compulsory feat
ure Of the present coinage act
Among the advantages which the Secretary
claims for the measure are that II would Drlne
into use all the money metal u the country; II
would give "A paper currency not subject 10 un
due or arbitrary initiation or contraction; II
would enhance the value Of silver and oper
the way to its free coinage; gold would be re
leyed of part Of the work required OF II; Il
would meet the wants OF those desirine
q larger volume OF circulation, and Il
would be advantageous TO silver producers
The Secretary gives many facts and ngure'
tending 10 support the position tasen by him.
NATIONAL BANKS.
Mr. Window gives nj great length his answers