The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1889-12-07

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the purchase OF bonds in addition TO those for
the sinking fund 800, 456, 72a5 and during the
first quarter OF the current year the sum OF NJ
S's,aS7 q all of which were credited 10 the
sinking fund.
The revenues for the fiscal year ending
June 40 1891 are estimated by the Treasury
Department ut 1850 00O,0C0, and the expenditures
for the same period, including the sinking fund,
at xil ,43O, I777O This shows an estimated sur
plus for that year OF $40 569as? 30 when Is more
likely to be Increased than reduced when the
actual transactions are written up
THE SURPLUS.
The existence of so large an actual and an
ticipated surplus should have the immaculate
attention Of Congress, with a view 10 re-,
ducing the receipts OF the Treasury 10 the
needs OF the Government as closely US may pe.
The collection OF moneys not needed for pubic
uses imposes an unnecessary burden upon our
people, and the presence OF SO iargG u sur sur
plus in the public vaults is disturoing eiG'
ness. 1t has called into use expedients
for putting il into circulation OF very ques'
tionable propriety. We should not collect
revenue for the purpose Oh nht w ,na siS, Hu
fund. but any unappropriated surplus IN the
Treasury should be so used, as there Is no
other lawful way Of returning the money 70
circulation and the profit realized by the
Government offers substantial advantage.
The loaning OF public funds 10 the banks
without interest upon the security OF Govern
ment bonds | regard as an utaulhorlneu
porary and unnatural increase OF the banking
capital OF favored localities. and compels eau
tious and gradual recall OF the deposits 10 aVoiu
injury TO the commercial interests. IL is not 10
he expected that the banks having these depos'
its will sell their bonds to the Treasury so long
as the present highly beneficial arrangement Is
continued. They now practically get lnterest
both upon the bonds and their proceeds. NO
further use should be made OF this method OF
getting the surplus into circulation, ana the de-
posits now outstanding should be gradually with
drawn and applied to the purchase OF ponus;
1t Is fortunate that such n use can be made Oh
the existing surplus, and for some time 10 come
of any casual surplus that may exist after Con-
gress has taken the necessary steps for a reduc'
ton of the revenue. Such legislation should be
promptly but very CONSIDERABLY enacted
THE TARIFF.
I recommend revision OF our tariff law
both in its administrative features ana IN tne
schedules. The need OF the former Is generally
conceded. and an agreement upon the evils and
Inconvenience to be remedied ana the Dest
methods for their correction will probably not
be difficult. Uniformity OF valuation az az our
ports is essential, and effective measures shouf1
be taken to secure 1t. 1t Is equally desirable
that questions affecting rates and classifica'
tions should be promptly decided.
The preparation Of new schedule OF customs as
its effect upon the business OF the country OF
great difficulty by reason of the wide divergence
OF opinion as to the objects that may be pro-
NOTED by such legislation. Some disturbance
of business NAV perhaps result from considera-
tion of this subject by Congl esS, but this tenn
porary il-efiect will be reduced to minimum
by prompt action and the assurance which the
country enjoys that any necessary changes
will be so made as not to impair the just ana
reasonable protection OF our home industries
The Inequalities Of the law should be adj
justed but the protective principle should be
maintained and fairly applied to the products or
our farms as well as our shops. These duties
necessarily have relation to other things be.
sides the public revenues. We can not limit
Treasury alone. They have direct relation to
home production. to work, to wages and TO the
commercial independence OF our country, ana
the wise and patriotic legislator should enlarge
the field of his vision to include all OF these.
The necessary reduction in our public reve-
nues can am sure, be made without making
the smaller burden more onerous IMAM the
larger by reason of the disabilities ana llmlta-
tions which the process of reduction puts upon
both capital and labor The free list can very
safely be extended by placing thereon articles
that do not offer injurious competition to such
domestic products as our nome iapor can sup
ply The removal of the internal tax upon to-.
bacco would relieve an important agricultural
product from burden which was imposed only
because our revenue from customs duties was
insufficient for the public needs. II safe provls
ion AGAINST fraud can be devised the removal of
the tax upon spirits used in the arts and in
manufactures would also Offer an unobJection-
able method of reducing the surplus.
NATIONAL BANK CIRCULATION.
table presented by the Secretary Of the
Treasury, showing the amount OF money OF all
kinds in circulation each year from lS1S 10 the
present time is of interest. 1t appears that the
amount of National Bank notes in circulation
has decreased during that period STA, 100, 49, OF
which S37 7ga 229 is chargeable to the last year.
The withdrawal of bank circulation will neceS-
sariy continue under existing conditions.
The total amount of money OF all kinds IN
circulation on March l, 1873, was SSO5, 1888 S07,
while on October /. 1880, the total was 81 iO5,-
0lSOO0 The amount per capita increased about
five dollars during this time.
THE SILVER DOLLAR
The law requiring the purchase by the Treas
ury of 81 100000 worth of silver bullion each
month to be coined into silver dollars OF 4l2la
grains has been observed by the department:
but neither the present Secretary, nor any OF
his predecessors, has deemed it safe to exercise
the discretion given by law to increase the
monthly purchases 70 $1,000 .: ,s1e inc inc
price of silver in the market was Sl.2O 4-lO
per ounce, making the bullion value of the dol
lar 90 cents. Since thattime the price has fallen
as low as 9l2 cents per ounce, reducing the bull
ion value of the dollar to 20. g cents Within the
last few months the market price has some
what advanced and on the LIST day OF NoVem-
Der last the bullion value OF the silver dollar
was ~ cents. The evil anticpationS which
have accompanied the coinage and use Of the
silver dollar have not been realized.
AS coin it has not had general
use, and the public treasury mas
been compelled to store it. But this is mani
testify owing to the fact that its paper repre-
sentative is more convenient. The general ac-
ceptance and use of the silver certificate show
that silver has not been otherwise discredited.
Some favorable conditions have contributed to
maintain this practical equality in their com
mercial use between the gold and silver dol
lars. But some of these are trade conditions
that statutory enactments do not control and
of the continuance Of which we can not be GER
tain
1 think it is clear that if we should make
coinage Of silver at present rates free we must
expect that the difference In bullion values OF
the gold and silver dollars will be taken account
of in commercial transactions and fear the
same result would follow any considerable in
crease of the present rate of coinage Such
result would be discreditable to our financial
management and disastrous to all business in
terests. We should not tread the
dangerous edge of such a peril,
and indeed nothing more harmful
could happen TO the silver interests. Any safe
legislation upon this subject must secure the
equality of the two coins in their commercial
uses. / have always been an advocate OF the
use OF silver in our currency. We are large pro-
ducers of that metal and should not discredit 1t.
To the plan which will be presented by the
Secretary OF the Treasury for issuance OF notes
of certificates upon the deposit IL silver bullion
at its market value | have been able TO
give only hasty examination owing to the
press OF other matters and TO the fact that
Il has been so recently formulated. The details
OF such a law require careful consideration, but
the general plan suggested by him seems to
satisfy the purpose-to continue the use OF
silver in connection with our currency and at
the same time 10 obviate the danger OF which
have spoken. At a later day | may communi-
cate further with Congress upon this subject.
OUR COAST DEFENsES.
T,do l,,-yn Gta q nracti-