St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-12-03

ehN thN pOliVy vi UUtlu purchases woo
continued. On account of the rapidly
diminishing supply of United States
bonds on the market, and Of the fact
that the sudden and great increase IN
the surplus compelled the immediate
purchase OF large quantities, IL became
very difficult to obtain them in Suffi"l-
emit amounts and at fair prices, but dur
ing the three and half months, from
July 10 to Nov. |, 1890, over S99,000,0O0
We're disbursed i'll payment for bonds
and interest.
There are many grave objections to
the accumulation of large surplus in
The treasury, and especially 10 the
power which the control of such surplus
gives TO the secretary. | am sure those
objections appeal To no one with SO
much force as To the head Of the depart
ment.
In my Judgment the graveSt defect in
our present financial system is its lack
of elasticity. The national banking
system supplied this defect to some eX-
tent 10y the authority which the banks
have to increase their circulation in
times of Stringency, and to reduce when
money becomes redundant; but, by rea-
son of the high price If bonds. this au-
thorlty has ceased to be of much practi-
cal value.
concerning CIrcuIatlOn.
| am aware that the theory obtains.
III the minds of many people. that if
there were no surplus in the treasury,
sufficient amount of money would be
III circulation, and hence no Stringency
would occur. The fact is. however, that
such Stringency has seldom been pro-
duced by treasury absorption, but gem
orally by some Sudden or unusual de-
mand Tor money entirely independent of
treasury conditions ana operations.
The financial pressure i'll September
last, which at one time assumed
threatening character, illustrates the
truth of this statement. There was at
hat time no accumulation of money in
the treasury from customs or internal
revenue taxes. nor from any other
source that could have affected the
money market. On the contrary, the
total disbursements for all purposes, in
Guiding bond purchases ana interest
prepaymrnts, during the last preceding
hfty-threr days, had been about So. 0U0,-
00O in excess of the receipts from all
sources.
The more recent financial stringency
i'll November. Immediately after the
disbursement of over 500, ZOO, 900 for the
purchase and redemption of bonds
within the preceding tour months. fur
niSheS another fOrcIDle illustration that
such stringencies are due to other
causes than treasury operations.
The Tariff.
The customs administrative act went
into operation Aug. l, 1890. Four months
Is too short a time in which to deter
mile fully the merits of the law, hut in
lis operation thus far it seems to have
fully justified It's enactment. The just
interests OF the revenue and OF honest
importers have been promoted, and the
government has now, TO Il greater eX-
tent than ever before, control of the
means 10 determine the legal rate and
amount of duty due and collectable
upon lmpOrtationS.
The purpose of the tariff act of Oct. 1
last was To effect needed reduction of
revenue, and such an adjustment of
duties as would adequately foster and
encourage home industries, while MAIN
tanning the standard of American
wages. This end, it is believed, has
been accomplished. More articles than
ever before have been placed upon the
tree list, rates have been reduced Oh
many others, and increased duties have
been imposed wien deemed necessary
to the adequate protection of our
agricultural and manufacturing inter
eStS.
Reciprocity.
The provisions for the advancement
OF the reciprocal trade with other
countries, as contemplated by the law,
are not hostile to the principle of pro-
lection. but are believed to be in har-
mOny with it.
The law has been too short time I'm
operation to warrant discussion herein
or its many details. it is believed that
the measure is sound in principle, and
that its several clasSlficationS, rates and
other provisions have been adjusted
upon comprehensive view of the vast
interests OF the whole country. The
law embraces SD many anu such COM
pick interests that it is quite possible a
practical test may disclose the necessity
| for some notifications and corrections.
but stability and certainty, in the reve-
nue. laws. are so essential to our finan-
clal and industrial prosperity that it is
earnestly hoped this law ma, have a
fair trial before any radical and sweep
ing changes shall be attempted.
The continuing controversy between
the American system of wisely adjusted
protection. and the opposite system of
unchecked industrial competition with
all the world is the inevitable contest
between two irreconcilable standards of
| civilization. The conditions under which
we are enabled to make the contest for
the higher STANDARD of living for ali
classes of our citizens are peculiarly
favorable.
The Internal Revenue.
The estimated receipts from all
sources of internal revenue for the cur
rent fiscal year will aggregate s145, OOO,-
600. This estimate has carefully kept
in view the reduction made in the tax
on tobacco and snuff, and the repeal of
the law imposing special taxes on deal
erS IN tobacco, manufacturers of tobacco
and cigars. and peddIers of tobacco.
The reductions in receipts are estimated
as follows:
Estimated reduction in re-
ceIptS from tobacco. s.. 900, 6S5 II
Estimated reduction IN re-
ceiptsfr ON snuff ...... -. 92,216 IL
Estimated reduction in re-
ceipts from special taxes. 1,515,4S1 IL
Total estimated reduction in
receipts from tobacco, etc,
for the fiscal year ending
June ~, lS9I..... S3, S9S, 3S2 70
The further reduction OF $3.50, 900 may
be expected under the operation of
those provisions of the act of Oct. l,
1899, which authorize the fortification
of wines with grape brandy free of tax.
1t is estimated that about $500, 900
gallons of wine will be fortified, and
that about one-fifth of their bulk will
be required in grape brandy-say &c.,
600 gallons will be used in the process,
tax on which is S450.OOO. This would
make the total estimated reduction in
receipts for the fiscal year ending June
80, 1891. aggregate s4,34S.3s2.72.
CHANDELIERS CHANCES.