Democratic Sentinel, Volume 1, Number 42, Rensselaer, Jasper County, 30 November 1877 — NATIONAL AFFAIRS. [ARTICLE]

NATIONAL AFFAIRS.

THE REVENUE. REPORT OF COMMISSIONER RAUM. The Commissioner of Internal Revenue, in his annual report to Secretary Sherman, shows that during the last fiscal year 4,952 distilleries registered and 4,510 operated. Net aggregate increase of receipts from the several sources relating to distilled spirits for the fiscal year, $1,043,344. An abstract is given of reports of District Attorneys for the fiscal year, showing the whole number of suits commenced as 5,828 • suits decided in favor of the United States, 3,327; suits detided against the United States, 606 : suits settled or dismissed, 3,046; suits pending July 1, 1877, 6,085. A statement is made showing a falling off in the total amounts assessed in the year 1877 of $1,704,324 from the amount assessed in the previous year, an amount almost equal to the decrease of assessments on the single article of distilled spirits seized or fraudulently removed, on which there was assessed in 1877 $1,707,299 less than in 1876, in which year very large assessments were made on account of the stupendous frauds committed by distillers in various parts of the country, and discovered in the latter part of the year 1875. The tax on deposits, capital, and circulation of banks, etc., in fiscal year ending June 30, 1877, was $93,437 less than in previous year, a decrease which must be accounted for by the depression of business prevailing in the past year, and to which many banks, and particularly savings institutions, were compelled to succumb. It should, however, be remembered that the amount reported in 1876 showed an unusual increase, $211,852, of tax on the current banking business of that year over previous years.

The amount assessed on tobacco, snuff, and cigars removed from factory unstamped shows the large increase of $314,505 over the amount assessed in the previous year, the amount so assessed in 1877 being about four times the amount assessed in 1876, to wit, $419,308. It is true that assessments equaling in amount this excess were made against certain manufacturers in Virginia and North Carolina on tobacco alleged to have been fradulently removed nearly fifteen months prior to the date of assessments, and that additional evidence was subseqently filed, upon which an abatement of a large part of the assessments was made. Nevertheless, even after making the se deductions, the value of safeguards provided by law other than that of affixing stamps is demonstrated by the figures above given. The total quantity of distilled spirits in taxable gallons at 70 and 90 cents tax placed in distillery warehouses, withdrawn therefrom, and remaining therein at the beginning and close of the fiscal year ending June 30, 1877, is given at 74,143,388. Statements showing the gross amount of average capital and deposits of savings banks, bankers and banks other than national banks, for the year ending May 31, 1876-77. are given as follows: - b

1876. 1877. Capital of savings banks $5,016,659 $4,965,500 Capital of banks and bankers.. 211,634,586 217,215,388 Deposits of savings banks having capital. 38,207,891 • 38,055,540 Deposits of savings banks having no capital 845,109,217 855,057,027 Deposits of banks and bankers 483,458,242 475,790,064 Totals $1,583,426,595 $1,591,083,519 The total collections from tobacco for the fiscal year ended June 30, 1877, were $41,106,546 in addition to the collections of specific taxes from manufactured tobacco, snuff, and cigars in their various forms. There are included in the above total collections from special taxes upon the manufacture and sale of tobacco, special taxes upon raw or leaf tobacco, and from the sale of export stamps. The following exhibit gives the number of persons engaged during the last fiscal year in the handling of raw or leaf tobacco, in the manufacture of tobacco, snuff, and cigars, and in the distribution of manufactured products, ascertained from amount of collections from the sale of special-tax stamps : Leaf dealers 3,805 Manufacturers tobacco 878 Manufacturers tobacco 15,462 Peddlers manufactured tobacco 319,045 The exhibit presented by the foregoing figures is in many respects a gratifying one, both to the Government and to the numerous parties engaged in the business of manufacturing and handling of tobacco. There are three facts in this connection which the Commissioner deems especially worthy of note. The first is that the production of manufactured tobacco for the last fiscal year was greater than for any other fiscal year embraced within the reports of this office, w’ith the single exception of the year ended June 30, 1875. The second fact is, that a larger amount of money was collected from manufactured tobacco put upon the market for consumption than during any previous fiscal year. The third fact is the pleasing one that a greater quantity of manufactured tobacco and more cigars and cigarettes were removed directly from the manufactories for exportation to foreign countries during the last year than during any previous year of which an account has been kept by the office of internal revenue. These results are believed to be largely due to those provisions oi the law which were intended to give to the Government a general control over the movements of raw or leaf tobacco, regulating its sale, transfer and shipment, and preventing its being sold for direct consumption without the payment of any tax, and in competition with manufactured and tax paid. The Commissioner says a continuance of these features of said law is necessary to maintain the present amount of receipts from said source.

she manufacture of perfumery for exportation is a large and growing interest. About 2,500 barrels of alcohol are used in this business, all of which are imported and withdrawn without payment of duty, and used in the manufacture of perfumeries in bonded manufactories, and finally exported free of tax or duty. Under the existing laws. American alcohol cannot be used in the business without the payment of tax, and there is no provision of law authorizing drawback upon the exportation of goods so manufactured. I see no reason for this discrimination against American distillers. The Commissioner, therefore, respectfully recommends that an act be passed authorizing the withdrawal of alcohol without payment of tax, to be used by manufacturing perfumers, in production of goods for export, under such restrictions as to prevent fraud and protect the rights of the Government. It has been found that in some portions of the country match manufacturers have put up matches in boxes containing so great a number as to facilitate frauds upon the revenue by the use of stamped boxes. I respectfully recommend that a law be passed limiting the number of matches to be contained in a single box to 500.

I recommend legislation upon the following additional points: 1. That a retail liquor dealer be authorized to close out his stock without incurring a wholesale liquor dealer’s tax. 2. That a bona-fide ’mortgagee of spirits should be authorized to sell and deliver the same under mortgage to any person qualified to buy them, without incurring a wholesale liquor dealer’s tax, and the person so receiving spirits, without reference to amount, should not be liable to any penalty therefor. 3. Where members of a firm who have paid special tax for pursuing any business are changed by the withdrawal or admission of a partner, the new firm that is created should be allowed to pursue business upon giving notice of such change to the Collector of their district, without the payment of a new tax. 4. That a person caught in the act of manufacturing or selling illicit spirits may be arrested, in view, without warrant, by a Marshal or Deputy Marshal, and forthwith taken before the proper tribunal for examination. 5. That the existing law be so changed as to authorize the employment of thirty-five revenue agents. • The total amount of drawback of internalrevenue taxes allowed during the fiscal year on exported merchandise is $30,546, an increase of $24,545 on claims allowed the last year.

THE NATIONAL TREASURY.

SYNOPSIS OF TREASURER WYMAN’S REPORT. The Treasurer of the United States, in his annual report of the operations of the treasury during the last fiscal year, makes the following exhibit regarding receipts and expenditures, as compared with the fiscal year ended June 30, 1876 : That ending June 30, 1877, shows a decrease in the net revenues amounting to $lB,481,452, and a decrease in the net expenditures of $19,799,788; net revenues for the fiscal year, $269,000,586; net expenditures, $238,660,008 ; making an increase of funds amounting to $80,840,577,

It is observed that, while the revenue from customs, lands and miscellaneous sources has decreased year after year, since 1873 the revenue derived from internal revenue, so-callsd, has increased, the receipts from that source in W 4 having been $102,499,784, and in the fisAl year 1877, $118,630,407. The total amount of unavailable moneys carried in balances of accounts in the Treasurer’s offices was as follows : June 30, 1876, $29,899,520; June 30, 1877, $29,620,883. The theory of public accounts is that the Treasurer of the United States shall be charged upon the warrant of the Secretary with all moneys received into the treasury, and for which whenever received he is held accountable until the same are properly disbursed under some appropriation made pursuant to lawIt has, howevdr, occurred that since 1838 the ri of $29,625,883 over and above the amount public money which has been properly accounted for has by reason of the deposit of the surplus revenue with twenty-six States of the Union, by deficit, by default, by theft in various places, and by failure in depository banks, gone-from the eustody-of the Treasurer, which it seems he cannot, from the nature of the case, account for, and thereby obtain credit therefor on the books of the department, and for the convenience of the operations of the department this amount is carried in accounts as unavailable.

The Treasurer thinks their should be legislation authorizing the opening of an appropriation account upon the books of the department in which, under the head of “ unavoidable,” the Treasurer may receive credit for sums now and hereafter from time to time becoming unavailable, and that the person, bank or State properly chargeable may be debited with various items by warrant upon the account stated by the proper accounting officers of the treasury. Although the monthly debt statement of the department was never intended to show the condition of the treasury and the amount and kinds of funds on hand, yet many deductions are sought to be made from time to time, as if that publication gave the liabilities and assets and not merely the condition of the debt. The only items of cash in the treasury which the debt statement include are the general currency, balance and the general coin balance. The currency balance, as it appears in the monthly statement under the item “cash in treasury currency,” is simply the amount of currency that would be left in the treasury after the payment of all currency demands in full, and also of the item “cash in treasury, coin.” There is, in addition, the amounts held for the redemption of clearing-house certificates and coin certificates, of which the amounts outstanding are noted in the statement, besides which, not mentioned, there are funds to the credit of the disbursing officers for the redemption of the notes of national banks failed, in liquidation and reducing circulation, to meet outstanding checks and drafts for the benefit of the creditors of national banks, the balance of the 5 per cent, fund and others.

A comparative statement is given showing in detail both in coin and currency both the liabilities and assets of the treasury on Sept. 30, 1876 and 1877. These aggregate as follows : Coin, Sept. 30, 1876, $67,586,705; Sept. 30,1877, $133,585,072; enrrenev, Sept. 30, 1876, SIOO,437,766; Sept. 30, 1877’, $110,096,039. Regarding the long-mooted question whether the legal-tender notes, deposited for the redemption of the circulation of failed, reducing and liquidating banks are held as a separate fund, it may be said that there is no provision of law which requires that such notes should so be held, and as a fact they have never been held set apart and distinct from other funds in the treasury. There is without doubt in the various offices and various vaults of the treasury a sufficient amount of United Stites notes to redeem all such banks’ notes If presented simujsineoußly for redemption, but they are not always in the vaults of this office, where the redemption is required to be made. A recapitulation of,the silver payments made in pursuance of the act of April 17, 1876, including the payments from April 18, 1876, until and including October, 1877, shows an aggregate of $23,156,162 of silver issued for fractional currency redeemed and destroyed, and $13,464,569 of silver issued in lieu of or in exchange for currency, making a total of $36,620,732. Upon an official estimate of $8,083,573 fractional currency lost in circulation there may be still issued before the limit of the $50,000,000 is reached $16,268,061 in exchange for fractional and $3,110,206 for currency obligations. There was a decrease of $27,509,108 in the retirement of legal-tender notes during the year, besides which there was a reduction in volume of the United States paper money very marked, leaving the outstanding circulating paper issues of the Government at $380,627,976 at the close of the fiscal year, being less than at any time since 1862. The volume of legal-tender notes and of fractional currency is also less than at any tinie siifce 1862.

There were presented during the year for redemption counterfeits of national-bank notes amounting to $14,563, including denominations from SIOO down to $2 also counterfeit legal-tender notes and fractional currency to the extent of $19,661. including all denominations of legal tender, but more cf the denomination of S2O than any other. The national banks have paid duty amounting to $75,762,087 during the thirteen calendar years from 1864 to 1877.

THE NATION’S ARMY.

GEN. SHERMAN’S ANNUAL REPORT. Gen. William T. Sherman, in his report to the Secretary of War, says that on Oct. 12 the regular army was composed of: General officers, 11; general staff officers, 566 ; hospital stewards, 186 ; engineer battalion, 199; ordnance enlisted men, 346; enlisted men of the staff corps, 731. Ten regiments of cavalry—officers, 439; enlisted men 7,911 —cavalry, 8,350. Five regiments of artillery—officers, 284; enlisted men, 2.32 l—artillery, 2,605. Twentyfive regiments of infantry—officers, 877; enlisted men, 8,778 —infantry, 9,655 —besides there are reported as non-commission staff unattached to regiments, Military Academy recruits, unas signed Indian scouts, and prison guards, amounting to men, 1,877 ; signal corps, 404; retired officers, 301; and a Captain of the United States army by act of Congress, I—aggregating officers and men, 24,501, of which the force available for war is made up of cavalry, artillery, and infantry regiments amounting to 20,601 officers and men ; to which should be added the eleven general officers and officers of the general staff serving with them, together with 570 Indian scouts.

The General details the operations of the army during the year, referring especially and in high terms of praise to the conduct of the officers and men during the Indian war and at the time of the recent riots. It appears that Gen. Sheridan, recommending an increase of every company in the service to 100 men, expressed the opinion that had this been done some time ago the Indian troubles would have been settled promptly, with the strong probability that they would not have occurred at all. Sheridan adds: “Indian troubles in this division are over for the present; I cannot say that they are finally ended. Complications are still liable to arise, and our experience should teach us to be better prepared than we have hitherto been.”

Gen. Sherman agrees with Sheridan’s recommendation, which would raise the army to nearly 50,000 men, but despairs of success in such application to Congress, and therefore urges such legislation as will givens 25,000 men for regiments of the line. This would make for the present 430 companies, an average of fiftyeight men to the company. Gen. Sherman continues: “I believe it to be wrong and damaging to increase the cavalry at the expense of the artillery and infantry. The latter do as good service as cavalry, are as necessary, and cost much less for their maintenance, All are equally necessary, and should be on a par, but the Presidentshould have the right to increase the companies stationed at exposed points at the loss of others not similarly situated.”

The concluding portion of the report is devoted to an account of Howard’s movements in pursuit of the Nez Perces, and the final capture by Miles. Gen. Sherman says: “Of course, Col. Miles and his officers and men are entitled to all the honor and praise for their prompt, skillful, and successful work, while others by their long, toilsome pursuit are entitled to corresponding credit, because they made that success possible." The General hopes these Indians will be provided with homes in tbe spring on the Indian reservation near the Modocs, where, by moderate labor, they can soon be able to support themselves in peace. They should never again be allowed to return to Oregon or Lapwai.

THE GENERAL LAND OFFICE.

REPORT OF COMMISSIONER WILLIAMSON. The annual report of the Commissioner General of the United States Land Office shows that sales of public lands for cash dating tbe

past year exceed those of the previous year by about 100,060 acres. The number of acres entered under the Homestead and Timber-Culture laws is 785,123 less. There were certified for railroad purposes 700,791 acres. The total disposals of public lands were 47,822,452 acres. Public surveys have been extended over 713,572,737 acres. There were surveyed the past year 11,242,928 acres, at a cost of $215,942. A large number of grants for railroads have expired by limitation, and it is regarded important that action should be taken by Congress either to enforce the forfeiture of the grants or extend the time for the completion of the roads. Should the latter course be pursued, the’claims of bonafide settlers upon lapsed lands should be protected. It is recommended that Congress withdraw all lands chiefly valuable for pine timber from the Homestead and Pre-emption laws, and from sale except for cash ; also, that the Secretary of the Interior be authorized to sell timber from public lands in the mining districts ; also, to sell timber upon any unsurveyed land (not mineral) when needed for actual settlement before public surveys; also, that a law be enacted providing for the care and custody of timber-lands unfit for agriculture, and for the gradual sale of timber, and for the perpetuation of the growth of timber of such lands. Legislation authorizing seizures of timber cut from public lands, without resort to the tedious precess of the courts, is also recommended. The United States Marshal for the Southern District of Mississippi has seized, in three counties bordering on the Gulf of Mexico, in the suit of the United States against John Manning and others, large amounts of timber, principally pine logs, estimated at over 75,000 in number. There will also be seized a large amount of charcoal and turpentine. This action stops trade which has employed many vessels carrying timber or lumber to foreign and domestic markets. The Commissioner also recommends the consolidation of all the offices of the Surveyor General; the abolition of the contract system, and the appointment of a Surveyor General who may appoint assistantsrequired to personally make surveys.