River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1889-12-12
WINDOWS REPORT.
of the Secretary of the
Treasury Regarding the Tariff. surplus,
National Banks, Etc.-His Plan for the
Gofutfon of the Silver Problem.

recommendations of the Secretary of the
Treasury Regarding the Tariff. surplus,
National Banks, Etc.-His Plan for the
Solution of the silver Problem.
WASHINGTON, Dec. 5.-The Secretary OF the l
Treasury ia his annual report submitted to /
Congress yesterday shows that the total r1ina- /
y revenues OF the Government from - Ources /
or the fiscal year ended June 20, iaS9, were
BS7, $50, 05S.si, and the expenditures s2Si, oe5-
43. 90, leaving a surplus OF Sos 053, 1924
OF this there was used for the redemption OF /
notes and fractional currency and purchase OF |
,onds s47 5S3, 1885, leaving q net surplus o.
b7, 470 l8o.5e for the year. For the preseDs
rear the revenues. actual and estimated, are
ES5 10000 and the expenditures s2s3,00OOO.
The estimated amount required for the sinking
lund is s4s, S21 1862 leaving net surplus Of
As,6 s8301.
During the fiscal year 1889 there was applied |
70 the redemption Of the public debt ssO,g19 ~.
The total net receipts from internal revenue /
tor lie fiscal year 1859, shown by the books |
81 the Treasury were slao, ss1 5f2g2, being an
increase over the year 1855 Of s6,5sI,64I.s4.
During the twelve months ended october 81, |
1889, there were purchased under the circular
Df April II, 1882, United States bonds 10 the
amount OF 500 233q50 OF these, $50 279, 100
were obtained prior TO March T. 1852, and 500,
s54 $50 after that date.
THE SURPLUS
The Secretary thinks a part Of the surplus
might De uHeu IN EllufEltE our HldfNtNos
strengthening the coast defenses and building
up the navy. The expedent OF purchasing
bonds is Of doubtful wisdom, he says, be-
cause il is manifestly wrong TO take money
from the people for the cancellation Of bonds
to the saving Of only about per cent. interest,
when IL is worth 10 them, perhaps three times
rs much IN their business. II is rather through
q 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 s3l, s68, s37.53. Mr.. Window
adds: whatever may be said OF the moral or
physical effects and influence Of tobacco il
has come to be regarded as necessity by the
poor as well as the rich. Ii is now the only
product OF agriculture that is directly taxed by
the Government The repeal OF this tax would
reduce the surplus about SS2. 00OO00."
The exemption Of alcohol used in the arts, the
tax on which is an onerous burden for which
there seems neither necessity nor excuse would
strike on $4,000 more.
TARIFF REVISION.
There is general agreement says the
Secretary, that revision OF the tariff and
customs laws is urgently needed. believe ii 10
be the dominant sentiment of the country that
In the adjustment Of duties on imports protec-
tion to home industry should be a governing
consideration. While there is a wide divergence
of judgment this proposition il can not well
DE denied IAuL IL Is tIc sttlltu pOilCE oA 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 If possible.
SILVER CoIN41aE.
On the question of silver coinage the Secre-
tary says: 1.-THE continued coinage Of the silver
dollar, at q constantly increasing monthly quota,
is a disturbing elem ent In the otherwise excel
lent financial condition OF the country and
positive hindrance TO any international agree
ment looking 10 the free coinage Of both metals
at fixed ratio. Mandatory purchases by the
Government of stated quantities of silver
and mandatory coinage OF the same
into full legal-tender dollars are an IN
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 % 1873. to November l,
1889, there have been purchased ~, SS9
4l611 standard ounces Of silver, at cost
of s2S8, $50, 62364, from which there have
been coined 34363sO01 standard silver dollars
There were in circulation on November of the
present year 6009S 40 silver dollars, less than
81 per capita, the remainder 2S3, 539 52l, being
stored away in Government vaults, OF which
t277, $40 ga were covered by outstanding certif
oates"
No proper effort has been spared by me
Treasury Department, says the Secretary, TO
put in circulation the dollars coined under this
law, but without success, and the point has
been, or soon will be, reached where the further
coinage of silver will become waste OF public
money
After specifying the various causes of the
depreciation of silver, the Secretary says it
is unquestionably 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 the 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 to make the silver
dollars equal TO their face 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 will eventually assert their pow
err The problem Is, therefore, says Mr.. Win
dum, 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 quanti-
ties Of silver bullion will equal in value, at
the date of presentation, the number Of dollars
expressed on the race Dl tuc HottS dt tAc mar
ket price OF silver in gold, at the option of
the Government, OF in silver dollars at the OPP
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 IL would bring
into use all the money metal Of the country; it
would give paper currency not subject 10 I'M
due or arbitrary imitation OF contraction; IL
would enhance the value Of silver aud open
the way 70 its free coinage; gold would be re-
heved OF part of the work required OF it; it
would meet the wants Of those desiring
a larger volume OF circulation, and il
would be advantageous to silver producers.
The Secretary gives many facts and figures
tending 70 support the position taken by him.
NATIONAL BANKS.
Mr.. Window gives al great length his answers
IN advance TO possible criticisms and claims
that the danger o. further depreciation Of silver
bullion is remote. H deals also with the ques-
ton OF lepositing public moneys with National
banks, which he considers a source Of danger,
moment deemed practicable TO commence the
withdrawal of these funds in such limited
amounts and under such conditions as viii be
least likely to niuriously affect the business In
terests Of the country, and, unless Congress
shall otherwise direct toinvest the money in the
purchase of bonds, in case they can be obtained
at a fair price" Mr.. Window gives review of
the National bank system, which he, on the
whole, approves, and directs the attention Of
Congress to harlships arising under the alien
contract labor law and to alleged evasions Of
the Chinese exclusion act.