New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-12-05
THE TREASURY.

The first annual report of Secretary Window
presents financial plan so striking and impor-
tant that its other recommendations and It's
able review of the finances may escape the at
tention they merit. 1t is document simple
and clear in statement, unequivocal in It's ad-
heSion to Republican principles, and highly en-
couraging in the information it conveys. Inc
public receipts last year, 1897, 050,009, and
the expenditures, 1921, 996616 ordinary and
$l7, 593, 314 for sinking fund resulted In a
surplus of S57 ,470129. For the current and
the next year receipts are estimated at three
hundred and eighty-fve millions each, and ex-
penses, including sinking fund.- are estimated
to leave a surplus of 81 3,679,S83 this year, and
S43,569,52 next year. The growing pensions
payments are especially noticed, over ninety
five millions last year and over ninety eight
millions next year. and it is shown that in
terest savings are thus nearly balanced:
Paid for pensions. s35 .1214s2 s956oA77e
| Interest ON debt 05 1927 $40 4lool'4S4
Total .s14o44o,431 36626,o63
For reduction of the surplus, it is recommend
cd, first to apply sums in improving foreign
mail service and charging foreign markets, and
second, in coast and naval defence, through
which the money will be returned to the people.
Repeal of the tobacco tax 1892, 600, 000) is adj
vocated and also Of the tax on 6, 600, 600 gal
Ions alcohol used in the arts 1854 90, 0OO). The
| tariff question is discussed at length and ably
with most earnest advocacy of the principles
of protection, and the necessity of correcting
antiquities and errors in the hasty act of 1888
is strongly urged The Secretary holds that
the example of the founders of the G0vela-
ment, and an overwhelming public sentiment
| Justify liberal expenditures for the encourage
ment Of merchant marine and the extension
of foreign commerce.
Silver coinage has continued for more than
eleven years, 299889,416 ounces of the metal
having been bought. and yet the price has
fallen from 81 20 to 90 cents per ounce. The
causes are ably examined and it is reasoned
that neither the same nor larger rate of COIN
age can be expected to raise the price. Inter
national agreement is not yet obtainable. I'm
| limited coinage would only result in enormous
contraction, by driving gold and gold notes
| out of use "thiS Nation is not strong enough
nor rich enough to absorb the silver of the
world without placing the country wholly upon
| the ASiatic silver basiso That there has been
no contraction thus far. but an increase Of six
hundred millions in the currency since March,
! 1873, is shown. Instead Of further coinage
the Secretary proposes the issue of silver notes
against all bullion deposited, at its market value
on the day of deposit, such notes to be re-
deemed in silver bullion, at its market value
when redeemed, or at the option of the Treas
ury in gold. Coinage being then unncceS-
saIy and further issues Of silver certificates, the
| stoppage of both is recommended.
In judging of this plan it must be considered
that the Secretary does not mean to invite the
silver of the whole world, as his words above
quoted show, nor to deprive American silver
of its chief market by admitting foreign silver
on the same terms. He holds that foreign sill
yer would not come hither, because only the
worlds market price would be obtainabe for
it, and submits a great body of information
showing that the worlds surplus available for
this country is in fact no more than the surplus
from American mines. But he suggests that,
if necessary, the deposits could be restricted by
the law to silver of American production, a pre-
caution which will be deemed necessary not by
silver producers only. In theory, it may be adj
mited, foreign silver can be palmed off for
domestic. In practice, receipts of any magni-
tude from abroad can always be followed. The
limits of domestic supply are not less real be-
cause natural and not artificial The mines
produce 100000 ounces, of which about
10000 600 are used in the arts. The remain
der, about S38, 600, 900 in market value would
not put into circulation bullion notes material
ly exceeding the amount of bank notes annu-
ally retired. To this reasoning it must be OBJ
jected that the product of the mines would
probably increase with sure and unlimited
market. But it may also be urged that some
increase in the circulation would not be I'M
safe. 1t is now one thousand four hundred
millions, and an increase at the same rate with
population or per cent, would add forty-two
millions yearly without enlarging the supply
per capita
Mr. Window therefore does not regard the
measure as exposing the currency to any dan
ger whatever of deterioration Or loss of public
confidence. His past record, as well as his re-
port gives abundant evidence that he has no
sympathy with those who want had monov Or
unsafe money, or desire to drive gold out Of
the country and bring the Nation to a silver
basis. ms Is liable to happen if silver coins.
worth only ~ cents, can be forced into ex-
elusive use as dollars. But it cannot happen. he
reasons, if bullion notes are to be issued only
against and redeemed only in the market vain,
Of the bullion. The notes would then pass. just
as the bank notes which they would replace now
do, only because believed by the people to be
absolutely good for certain value in gold.
II has been objected that the Government
would lose money under this plan, if deposited
bullion should fall in value. But in exactly
the same sense it loses already, on all the stand.