The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1889-12-05

pectducy.
THE TREASURY REPORT.
Suggestions Regarding the Surplus
and the silver Question.
The report of Hon. William Window, secre-
tary of the treasury, was sent 10 Congress yes
terday. From this it appears that the total ordi-
nary revenues of the government for the past
fiscal year were 1897 1850, o5S.S4; total ex-
penditures 1921 1896, 1850; leaving a surplus
of $lo5,O5S.44324. Of this $47, 1885
were used In the redemption of notes and frac-
tional currency, and purchase of bonds for the
sinking fund, leaving a net surplus for the
year OF $55470, 1859. As compared with
the previous year, receipts increased $7,7S3,-
9s4.oS, and expenditures $22, ,656.93.
The secretary estimates a net surplus for the
present year of $43, 1888, and for the wear
1891, of $40, 569,522.
PENSIONS.
The amount estimated for pensions for the
year 1889 was $76.3l2, 400. and the estimates
for same purpose, herewith submitted, for the
year 1891 are $98,587,252. showing an appar.
ent increase of $22,274,S52. These figures,
however, do not even approximately represent
the actual increase of expenditure for pensions,
because the estimate for the year 1889 was
wholly inadequate to meet the demands of the
service. The amount regularly appropriated
for pensions for that year was SSl,75S. 700.
10 this was added deficiency appropriation
by last Congress of $S,000,000 and about
$S,00O,O00 more were necessarily drawn from
fhn avxr.w a. e IL.
pensions due in the fiscal year 1889, but for
which sufficient appropriations had not been
made. The total amount therefore, which was
actually required for pensions for the fiscal
year ended June so, 1889, was $95, 624,779.-
IL.
The amount appropriated for pensions for
the current year was the same as last year
($8l,758,7 1000; but there is an estimated de-
fciency of $24,0O0,00O for this year, making
total of $l05,758,700 deducting from this the
$S,000.000 drawn out, as above stated, to meet
the deficiency for last year, will leave chargea-
BILE to the current year $97,758,700 The
amounts actual and estimated for pensions will
therefore stand as follows:
Expended for the year ended June
Appropriated and estimated for
~. year ending June 80. 1890, 97,75s,7OO
ESTIMATED for year ending June 80,
1891, sS.5s7252
comparison of the expenditures of 1879
with those of 1889 will show that during the
last ten years the increase of pensions has not
differed very widely from the decrease of inter-
est on the public debt:
Pensions in 1879, s35,l2l.4s2 80
Pensions in 1889, e56o47 79 m
Interest on public debt, 1879, I05,327ei9
Interest on public debt, 1889, 4l,O0l ASA 90
PURCHASE OF BONDS,
During the twelve months ended October 81,
1889, there were purchased under the circular
of April IL, 1883, United States bonds to the
amount of $99,233,950. Of these, $32,279,4 400
were obtained prior to March 4, 1889. and
500, $50 after that date.
Notwithstanding the diminished supply of
bonds for sale in the markets the government
has been able to obtain at constantly decreas-
ing prices sufficient amount of bonds to
meet the requirements of the sinking fund for
the current fiscal year and carry out the pro-
visions of law respecting the investment Of the
surplus revenue. While it was necessary to paw
l0S for AZ per cent bonds of 1891 purchased
March 5, 1889, with net premium of 7.97,
they were offered and accepted October 81 at
1861, the net premium being 400, decrease
in actual premium of nearly per cent. During
the same period, or from April to October 81,
1889, the price of per cent bonds was reduced
from l29 to l27 and the net premium from
2S.93 to 1856, reduction i'm actual premium
of over ~ per cent.
SURPLUS REVENUE.
1t appears from the foregoing estimates, that
after due provision shall have been made for
meeting the ordinary expenses of the govern
ment, including the requirements of the sink
ing-fund, there will remain, under the opera
ton of existing laws, an annual surplus of
revenue of about $44,0OO,60O.
An accumulation of money in the treasury
beyond the necessities of the government en-
dangers legitimate business, tends to excessive
and wasteful public expenditure, and to en-
courage extravaganza in private affairs.
In the presence of such conditions, it is
manifest duty to wisely guard against future
needless accumulation with its fruitful train of
evils
If portion of the surplus revenue can be
used to enlarge our foreign markets. and there
by advance our commercial and productive in
terests, the Strengthening of our coast de-
fences and the building of our navy, subjects
of nation concern, offer further opportunity
for wise expenditures that would return the
money to the people.
But after making provision for such expen-
ditures as may be proper and reasonable for
these purposes, large annual surplus will |
still remain under the operation of existing
laws.
Reduction of the interest bearing debt of |
the government, by the purchase of bonds, is |
the expedent resorted to for returning a part |
OF this surplus to the channels of trade, and is /
the only means now open to the secretary of /
the treasury for the use of this money. To /
require from him this measure of responsibility /
and discretion is of doubtful wisdom.
A possible successful appeal to this discre-
ton tempts individuals to rash business I'M
dertakings, in the belief that the money in the /
treasury will be used to avert disaster. In the /
absence of such discretion in the secretary,
the possible use of this money would cease to /
enter into the calculations of the business
world.
1t is manifestly wrong to take money from
the people for the cancellation of bonds, to the
saving OF only about 2 per cent of interest
when IT is worth to them, perhaps, three times |
10 mucn In their business. 1t is rather through /
reduction OF customs receipts and internal |
taxes, that an unnecessary accumula-
tion IN the treasury should be avoided.
MEANS OF REDUCTION.
Whatever may be said of the moral or
physical effects and influence of tobacco. IL has
come to be regarded as a necessity by the poor
as well as by the rich. 1t is now the only
product OF agriculture that is directly taxed by
the government.
Ihe repeal of this tax would reduce the
surplus about $32, 900, 900.
Inc subject of exempting from taxation al
oonoi iot use In the arts merits and has re-