The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1890-12-13
UNCLE SANS FINANCES.
Secretary WINDOWS Roport-BUsinese of
the United states Treasury Department.
Reviewed.

WASHINGTON, Dec. q. - Secretary OF the
Treasury Window in his report Of the opera
tions OF his department for the fiscal year
siss sS Sso and the total expendiiures Sssssl T
bS1 IA compared with the fiscal year 1889 the
receipts fer 1890 have increased $1,000 923 as
and the ordinary expenditures have increased
Slb,739s'l The revenues for the present fiscal
year are estimated at S06, 6,0OOOD0 and the ex.
pa peanditnres a. ss5i 100000 leaving a surplus OF
Receipts, S73,0O00o0; expenditures $357, ,eS2 200
SINKING FUND.
Under the requirements of the act of Februa-
ry25 1909 trcvised statutes, sections S6Ss $3.50,
establishing sinking fund for the gradual ex-
tlnguishment of the public debt, there have
Ocen purchased during the months of July, Au.
gust, September and October OF the current
fiscal year s21 500 100 of the funded loan of 1891
and Si6 1874, 900 of the funded loan of 1907, at
cost TO the fund for premium and anticipated
interest OF al 226, ,S2g 20 on the former and S3,-
sii45O.g3 on the latter loan. There have also
been added to the fund by the redemption OF
fractional currency, Treasury notes and United
States bonds which had ceased to bear interes;
the sum of sS,764, making total of $500 !.
TSi3 applied to the fund as against an esti-
mated requirement for the year of i9,0d7,270.
SURPLUS REVENUE.
{ The surplus revenue was largely increased
last summer by the pending changes in tarfI
legislation. And the available bnlanCc in the
Treasury was also greatly augmented by the
act OF july II, 1890, which transferred over S5I,-
0O0,OOO from the hanli-note redemption fund to
the available cash. This sudden and abnormal
increase WIS lub cause OF much concern unu
some embarrassment to the department 10
prevent an undue accumulation of money in
the Treasury, and consequent commercial
stringency, only two methods we're omen to the
Secretary, namely, TO deposit the public money
in National banks, or TO continue the purchase
OF United States bonds on such terms as they
could be obtained. The former method was
deemed unwise and incxpcdient, and the policy
of bond purchases was continued.
Tho report then gives an extended account of
tho amount and manner in which bonds were
purchased during the md thnt
total amount of and IA per cent. bonds pur-
chased and redeemed since March 4, 1889, is
S2l |, ,SS2, ,ijO, and the amount expended therefor
is S2i6, ,62O, ,7i112. The reduction In the annual
interest charge by reason of these transactions
is IS. 967 GO975, and the total saving of interest
is S5l, $40, 7O601. During the three and one.
third months from July 10 to November /, 1890
over $4,000 OO) were disbursed in payment for
bonds and interest.
DEFECTS IN THE FINANCIAL. SYSTEM.
Inmy judgment, the gravest defect in our pres.
ent financial system is its lack of elasticity The
National.banking system supplied this defect
to some extent by the authority which the
banks have to increase their circulation in
times OF stringency, and to reduce when money
becomes redundant; but, by reason of the high
of much practical value. The demand for
money, in this country is 70 irregular that an
amount OF circulation, which will be ample
during ten months of the year, will frequently
prove so deficient during the other two
months as to cause stringency and CONNER
disaster. Such stringency may occur with.
u
ugh, unfortunately, IL is often intensified by
ch manipulations The crops of the country
nave reached proportions SO immense that
their movement to market in August and Sep
tember, annually causes a dangerous absorp-
ton of money. The lack OF q sufficient supply
10 meet the increased demand during those
months may entail heavy losses upon the
agricultural rs well as upon other business in
terests Though financial stringency may &C.
cur at any time, and from many causes, yet
nearly all of the great commercial crises in
our history have occurred during the months
named, and unless some provision be
made to meet such contingencies in the
future, like disasters may be confidently cx-
pccted. | am aware that the theory obtains,
III the minds of many people, that If there We're
no surplus in the Treasury u sufficient amount
OF money would be in circulation, and hence no
strngcncy 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 ana opera.
tiOns The recent financial string in No
vembor, Immediately after the disbursement OF
over slOO,OOOOOO for the purchase and redemption
of bonds within the preceding four months,
furnishes another forcible illustration that such
stringenCicS are due to other causes than
Treasury operations.
TARIFF AND CUSTOMS ADMINISTRATION.
The customs administrative ac: went into
operation August /, 1890 -Four months is too
shur: "a time in which to determine fully the |
merits Of the law, but in its operation thus far |
II seems to have fully Justified its enactment. |
The just interests OF the revenue and of honest |
importers nave Dcen promoted ana tnc Govern |
inent has now, TO a greater extent than ever
before, control Of the means 10 determine the |
legal rate and amount OF duty due and collect |
able upon importations.
The purpose of the tariff act OF October last |
was to effect needed reduction of revenue and |
such an adjustment of duties would ade. |
quately foster and encourage home industries |
while maintaining the standard of American |
wages. This end, ii is believed, has been nc
cOmplishcd. More articles than ever before |
have been placed upon the free list rates have |
been reduced on many others, and increased |
duties have been imposed when deemed neces- |
sary to the adequate protection of our agricult |
ural and manufacturing interests.
The provisions for the advancement of. re- |
ciprocal trade with other countries, contcm- !
plated by the law. are not hostile to the lrin-
ciple OF protection but are believed to be in
harmony with IL.
The law has been too short q time in opera |
ton TO warrant discussion herein OF it's many
sound in principle, and that its several classt-
cations rates and other provisions have been
adjusted upon comprehensive view of the
vast interests OF the whole country. The
law embraces so many and such complex
interests that IL is quite possible practical
test may disclose the necessity for some ,
notifications and corrections, but stability and
in the revenue laws. are so essential
to our financial and industrial prosperity, that
IL Is earnestly hoped this law may have fair
trial before any radical and sweeping changes
shall be attempted. The new industries which
IL was confidently expected would spring up
under It's fostering care, and the new home
markets which would thereby be opened Cor
American labor and products, will certainly
fail OF realization, II any well.grounded fear
shall be aroused as To the stability of the law,
or OF the principle OF protection which IL EN-
bodies.
The continuing controversy between dhe
American system OF wisely-adjusted protection
and the opposite system OF unchecked in |
dustrial 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 all classes of
our cit Gems are peculiarly favorable. The |
United States, with absolute freedom of trade, |
md perfectly untrammeled Industrial competi- |
ton among 6S0O0,00J OF people, unsurpassed in |
energy, industry and inventive genius, and with |
the widest possible range of climate and natur- |
nj products are by those conditions assured the |
lowest range OF prices compatible with areaSon- |
nble return TO producers, and the maintenance |
Of higher standard OF civilization for tie IN |
dustrial classes.
INTERSAL REVENUE. |
The report OF the Commissioner OF internal |
Revenue shows q satisfactory condition OF that |
branch OF the public service, and that 1t has |
been efficiently and.GcoDOmically conducted will |
be cccn by lhe fact that from brief summary II |
appears that while the increase of business was |
very large in all lis branches resulting in an in
crease OF revenue amounting to Sll,1Oo, ,a62 81 |
3l7. IS in the actual cost of collection. The es
timated receipts from all sources G1 internal |
revenue for the current nscal year VIII aggre |
gate $lI5, ,0D,ooD.
TIE CIRCULATION. 1
The following table shows the comparative |
amounts OF money of various kinds in circula- |
tion October L, lSSo, apd October l. 1880:
0a. L 1850 oct. ], 1896. Increase.
Gold COIN. sasi, so 90 1885, $50 Tas t1s5 6iSsoa
Stand. silyerl
dollars. ss,si4,O75 o2,1a345a 30aiss70
Subsid aryt
silver...... 4Ssos5is be,slls4ol 7.s4s.Sos
Gold ccrlin-l