Democratic Sentinel, Volume 7, Number 45, Rensselaer, Jasper County, 7 December 1883 — FINANCE. [ARTICLE]

FINANCE.

Abstract off the Report of the Secretary ST the Treasury. . The report of Secretary Folger for the fisca l year ending June 30, 1883, shows that the ordi* nary revenues of the Government for the yea* were as follows: Customs, $214,706,497; intern*! revenue, $144,720,369; sales of public lands. $7,C5>,864: direct tax, $18,157; miscellaneous. $30,796,695; total, $398,287,582. Ordinary expenses: Civil and miscellaneous, $68,678,0227 War .department, $48,911,383; Navy department, $15,283,437; Indians, $7*362.590; pensions, $66,012.574; interest on public debt, $59,160,132; total, $265,408,138. leaving a surplus revenue of $82,879,464. This is $7,309,00 more than Mr. Folger estimated that the surplus would amount to in his last annual report. Compared with the previous fiscal year, the receipts for 1883 have decreased, in customs •$5,704,233; in internal revenue, $1,777,226; in direct tax, $51,986, and in m soeilaneous, $906,948. They have increased in sales of public lands $3,202,724. Total decrease, $12,664,367. The expenditures show an increase over the year before of $7,526,697 The expenditures of the War department increased $5,400,000; for the Navy deoartment, $250,000, and tor pensions nearly $5,000,000, while the interest on the public debt decreased almost $12,000,000. Since the last annual report the sot of March 3, 1883, diminished the sources of internal revenue and changed the tariff law, so that the estimate made a year ago must be entirely revised. Then the receipts expected from Internal revenue were $145,000,000. ’ Now the estimated revenue is $120,009,000. The receipts from customs have fallen off proportionately. For the four months ending Nov. 1, the total receipts were $124,369,985: for the corresponding months of last year they were $114,952,932. For the same periods the expenditures were SB9918,200 ana $98,706,661. By the payment of $207,000,000 of the public de.bt, the charge for interest will be greatly reduced. It is probable that the receipts will be about $350,000,000 for the fiscal year 1884, while the expenditures will amount to $265,000,000, leaving a surplus of $85,000,000 over and above the sinking fund. During the last fiscal year the bonds retired amounted to $134,009,750. Since then $38,374,000 of 3 per cents have been paid, and $40,000,000 more have been called. Of this last sum, $5,000.000 has been met already, and is included in the $38,374,000. The Secretary again calls the attention of Congress to the fact that the receipts of the Government are greatly in excess of its needs. The dangers of this large surplus to the money market will be dwelt upon, and the Secretary will say that there is no method of disbursing this surplus except by payment of the public debt. Payment of the public debt, however, is nowinjurious to the national banking system. When all the outstanding calls are paid, the 3 per cents, will be reduced to the neighborhood of $280,000,000. and of this the banks hold about $200,000,000. If payment of the public debt is to be permitted tojo on. even this year, as it has during the last fiscal year, the existence of a good many national banks is threaten :d, and this means a sensible contraction of the currency. If the income of the Government remains asdt is, the Secretary of the Treasury will call atTeast $50,000,000 more of bonds before the end of the fiscal year, and by the end of the fiscal year 1885 more than half the banks holding 3*B as security for circulation would have to replace them with 4’s at a great premium or retire their circulation, and thus contract the currency. In discussing tue mode of reducing the revenues. the Secretary opposes the abolition of the internal-revenue tax. It is estimated that this tax will yield under the present law $120,000,000, and this is at least $35,000,000 more than the revenue can be decreased. A decrease of the tax on tobacco and spirits does not necessarily argue a smaller revenue, as experience has often found. Therefore, the Secretary recommends a still further reduction of customs duties, after a proper inquiry shall have developed what articles can best stand the reduction. Sugar, at least, the Secretary thinks, ought to pay a much smaller duty than it now does. The Secretary is embarrassed by the new law which has so recently been passed that it would seem proper to give it a further trial before endeavoring to change it, but it has not accomplished the purposes which he desired to effect when he last year recommended that a redaction of revenue be made by a revision of the tariff that should reduce the duties on sugar, iron, steel, woolens and wool, cottons and raw material. Therefore these recommendations must be substantially renewed, for the dangers of a large surplus are even more threatening than they were before the passage of the Tariff act. The Secretary calls attention to the suggestions made by Comptroller Knox, that the rate of tissue of national bank notes be increased to 90 per cent, of the market value of the bonds, and that the 4’s be refunded in 3’s, the holders receiving a premium in satisfaction for the resultant loss df interest.