Telegram-herald. ([Grand Rapids, Mich.) 18??-1892, 1890-12-03
THE TREASURY.
Extracts from ths Annual Repors
Of Secretary Wlsaoa.
hses.pts. Exp<aaifGres and Esfisssaiss
Views ca ne f&rgf ana
Other Qossgseas.

--s-N"- y
"a. - - a. -As telsl s1p~saitaEss 3ssssis
80 A. eszse4rs3 ~ite ne Asa ys@E -. a.
Fs1sskts ~ ls@ have '1<le@ss2 IS. 80 IS =
- - -. ofef>sy sasses .-les asss lasfsasss
3~@E afS est1n4tsa a. tsl8 Js~.Ao Aa1 as e.
k~@@is11ss 81 49, 80 -, aess as sarRlas 4
49, ~ he ssslm4tss ~ tAs 3ssr - are.
AecslFks, ssI3 &c ~ exkxa1itaEos 49, ~ a.
sgsKISG EgsB.
tsaxf tAs requirements - ths act q FekEus.
- - so lfss lse4 st441tss ssgtlcGz ooeA ssss3
estA1t-snAhs sla<lax f4nz tsr t1e sf44Q4l e.
ttn5alsazsat q tAs public lebL fAsr~ ave
eeea p4rc1 zssd dUfiGg tss 1c4fEs ~ jay A
s1st, seElsuBsr nd October u tie Garrett
hse@i Fesf a. - 10 y tas f4l4sd sea ~ ls3l
aAe eis lsiAe q tAs fer0sd losa o. i-o1 al
S-st - tAs ta11 Ter sEeaiaG aRd anticipated
interest - Al -, - ID o. t1s fsrmeF ga e.
s4fts5 - "a lac latter l-sl I1sge hsx~ also
o.c- s1aea - ms fuAa 81 tae re@sElpllon u
States eonas Eicl a&G ceased u Gear Interest
t-e sAzA q q 81 making total q tssV72.
lets' -PRlase q he flEa - ssaiasg sssi-
m4-cd fs2llfeMeat Tor the year " ga. NJ 20.
sghrLUs EEvsEUE
{ fas surplus revenue vas largely Increased
lAst summer ~ tae peadlng cAsages II l.nr
lSgisi4iloa- And tks available bAl4ncs in lac
- - - A. 49, greatly aug n.ensed % tae
~ % from the bzEk note fcae q ltl0n fund u
N available casa This sudden ana abnormal
lnereAse "as the cause Of Inlch concern Rad
ssa4r eLo4ffas7r1cat % the department To
pfrFcat ~ undue sccnmui alton 81 Elonsy 10
The Treasury, ana consequent commercial
sH.hs snsy, oaiy Two metaoas were evea 70 tas
Secretary, namely, 10 deposit TIE public money
n sAiioaAl backs. or % contluu5 the purchase
81 United States bonds on such tormk a. they
could be 0htaiaed The former method y as
deemed unulss AID iucxped emit and tne policy
81 bond purchases was continued
TIE report tneu gives an cxIeaaed account q
the amount and manner Ia wnlch bonds were
purchased during me year, and Says that the
total amount Of and a. per cent DOads pur-
chased and redeemed since March L. 1885 is
a. AeZ,4 49, aud the amount expended therefor
= s-f0,e<9 14i x. Tas reduction IN the annual
interest cnafEe by reason OF tnese transactions
Is 500 cO5 -. ana the total saving OF interest
Is tl,5.o, 7J50i During tie Ihrce and one
thlrd months from J uly - 70 NOV mber j, 1850
boAds AID interest.
DEFECTS IN THE FINANCIAL SYSTEM
In my Judgment. the grayest defect IL our pres
ent nnaucla system Is It's lack Of elasticity The
N-tionai-banking system supplied this defect
70 some extent by the authority which the
banks have % Increase their circulation In
tlfaes OF stringency, and 20 reduce when money
becomes red1Edanti but, by reason Of the high
price OF bonds, thiS authority has ceased 20 be
OF much practical va.ae. The demand for
money, In this country, Is so irregular that al
amount OF circu alton, which will be ample
during Ten months OF the year, will frequently
prove so deficient during the other two
months as 10 cause stringency and CONNER
cial disaster. such stringency may occur with.
out any speculative msnipulations Of money.
though unfortunately, IL IL often intensified by
such manipulations. The crops OF the country
have reached proportions so immense that
their movement 70 market in August and Sep
tenn Der, annually causes dangerous absorp-
ton OF money. The lack OF sufficient supply
TO meet the increased demand during those
months may entail heavy losses upon the
agricultural as well as upon other business IN
terests Though financial stringency may oc-
cur al any time, and from many causes yet
nearly al OF the great commercial crises in
our history have occurred during the months
AZ no.
made TO meet such contingenoies in the
future, LIKE disasters may be confidently ex-
pected- Am aware that the theory obtsins,
Ia the minds OF many people that II there were
no surplus In the Treasury. o sufficient amount
OF money would be In circulation and hence no
stringency would occur. The fact is however
that such stringency has seldom been produced
by Treasury absorption, but generally by some
sudden or unusual demand for money entirely
independent OF Treasury conditions and opera
lions. The recent financial stringeRcy in No
vemoer. Immediately after the disbursement OF
over 800 600 for the purchase and redemption
or BONDS within the preceding four months,
furnishes another forcible illustration that such
stringencies are due 10 other causes than
Treasury operations.
TARIFF AND CUSTOMS ADMINISTRATION
The customs administrative act went into
operation August 1, 1890 -Four months is too
short time In which 10 determine fully the
merits OF the law, but in it's operation thus far
IL seems TO have fully justified its enactment.
The just interests OF the revenue and OF honest
ment has now, 10 a greater extent than ever
before, control Of the means 10 determine the
legal rate and amount OF duty due and collect
able upon tmpOrtations.
The purpose OF the tariff act OF October last
was 20 effect needed reduction OF revenue and
such al adjustment OF duties as would ade-
Quately foster and encourage home industries
while main tanning the standard OF American
wages This end. IL Is believed, has been ao-
complished. More articles than ever before
havo been placed upon the free nst. rates have
been reduced on many others, and increased
duties have been imposed when deemed neces-
sary 20 the adequats protection OF our agricult
ursl and manufacturing interests
The provisions for the Advancement OF re-
ciprocal trade with other countries. as contern-
plated by the law. are not hostile TO the prin-
ciple OF protection but are believed 10 be in
harmony with H.
The law has been too short a time in opera
ton TO warrant discussion herein OF it's many
details. II il believed that the measure is
sound Ia principle and that its several classic
cations, rates and other provisions have been
adjusted upon comprehensive view OF tho
vast interests OF the whole country. The
law embraces so many and such complex
interests that II IL quite possible a practical
test may disclose the necessity for some
notifications and corrections. but stability and
certainty, In the revenue laws. are 50 essential
70 our financial and industrial prosperity. that
~ IS earnestly hoped this law may have fair
trial before any radical and sweeping changes
snail be attsnptes. The new Industries which
IL was confidently expected would spring Up
markets which vouls thereby be opened for
American labor and products. will certainly
fail 81 realization, II say wellgrounded fear
shall be aroused - 10 the stability Of the law
or y the principle Of protection which IL EN-
bodies
The continuing controversy between the
American system Of wisely adjusted protection
and the opposite system OF unchecked IN
dustTial competition with al The world is the
inevitable contest between two irrsccncilable
standards q civilization. The conditions under
.f.a4 ALL
the higher standard Of living for al CLASSES q
our citizens are peculiarly favorable. Tho
United Stascs. With absolute freedom 81 trade.
and perfectly uutr3mmeled Industrial c0mpeti-
tioa among s30e5 co. q people unsurpassed in
energy. lnGustry sad Inventive genius. and With
The deaf p3ssbls range 81 climate and nstur.
lowestrsaEs Of prices compatible with areason-
sole return - producers. ard the n ainter ancs
o. higher staatard Of civilization for ths IN
sestrial siasses
INTERVAL FEvENuR
TIE report 81 TIE Commissioner 81 Internal
Revenue Shows satisfactory condition 81 that
branch 81 tas public service. and that Is has
been cTclsatlr aat econcmicallV conducted wiIl
he see. ~ ne fact that fron brief summary il
appears tass while the increase q business vas
very srEe = al its branches resulting in Ar IN.
crease q rsrenae amounting g. s.. 90 - -
over tse rear 80 Tet there vas . ssving - t1o
az e. In she sctusl cost 81 collection. ne -.
tigaste4 reeei Pts from a. sources ~ Internal
revtgu@ ier tas currszt ascsl yesr vi sEsrs
gaze SIS 3oaoo
cFEasTToNs OF TFr NrvTa
Tie eolrsxs e. TIE stats, dsrns r. fsrai
TeaF. wss "a ia-Fest ir tie kjstcrT % TIE u a.
IL tsis eGurtrF, aEgrrTatIns f52tss Oh pisces
"a ned as - Irws tfoif 20 Ga Is - 80
dossrs Is 80 sls sahsisfar7 slirsr 49, > . -.
mtner cess = At - - total ~ - ~ a.
In afdftsca - Fhe cei1sgs Fod hs-s wsre n a..
ufa csared O. - vase q 81 ~ AZ - ard sll
ver bars - - Vsl1s ~ q Is &c - fetsi n
tNsS -gis Ta~ as - rrerfoas meas =
~ expe~t 5srsE re gar ras. COS 81 IA
e. silF@r = Ssa Es
TIE sftens 90 - Cong rsss - respectfully -
caestss - 90 act 81 Mas - fss2 - se~iz -
- sreasrx~ = go 49, for - z sofa- tr.s =