Democratic Sentinel, Volume 12, Number 47, Rensselaer, Jasper County, 14 December 1888 — THE NATION’S TREASURY [ARTICLE]

THE NATION’S TREASURY

WHENCE COMES THE .MONEY AND WHITHER IT GOES. Secretary Fairchild, of the National Treasury, Makea His Annual lieport to Con-gress-Ata Interesting Document—A Surplus of 5958.U00.000. [Washington spacial.] The following comprehensive document has been presented to Congress by Secre-tax-y Fairchild, of the National Treasury. It is a complete digest of the workings of that department for the past year: The ordinary revenues of the government from all ‘sources for the fiscal year ended June 30, 1888, were: From cu5t0m55219,091,173.63 From internal revenue 124,286,871.98 From sales of public lands.. 11,202,017.23 From profits on coinage, bullion deposits, and assays.. 9,387,634.48 From tax on national banks 1,748,566.85 From fees—consular, letterspatent, and land 3,433,448.99 From customs fees, fines,’ penalties, etc 1,097,448.20 From sinking fund for Pacisic railways 1,170,331.43 From miscellaneous sources. 7,838,581.97 Total ordinary receipts. $379,266,074.76 The ordinary expenditures for the same period were: For civil expen5e5522,852,334.03 Fox- foreign intercourse 1,593,461.40 For Indian service...- 6,249,307.87 Fox- pefisions 80,288,508.77 Fox- the military establishment, including rivers and harbors and ar.-enals 38,522,436.11 For the naval establishment, including, vessels, machinery, and improvements at navy yards 16,926,437.65 Fox- miscellaneous expenditures, including public buildings, light-houses, and collecting the revenues 44,228,351.89 Fox- expenditures oxx account of the District of Columbia 4,278,113.48 For interest oxx the public debt 44,715,007.47 Total oxdinary expenditure 5.5259,653,958.67 Leaving a surplus 0f... ,$119;612,116.09 Which was applied as follows:. Purchase of bonds fox- sinking fund, including $2,852,015.88 for premium.. $36,557,165.88 Redemption of— Fractional currency for sinking fund 7,400.00 Loan of July and August, 1861 34,350.00 Loan of 1863 4,500.00 Five-twenties of 1862 11,300.00 Five-twenties 0f1865 1,500.00 Ten-forties of 1864 7,850.00 Consols of 1865 26* 350.00 Conspls of 1867 v .. 97,550.00 Consols of 1868 1,250.00 Oregon war debt 150.00 Funded loan of 1881 83,100.00 Loan of July 1882 4,175,750.00 Old demand, compound interest, fractional currency, and other notes 65,863.05 Funded loan of 1891 8,337,550.00 Funded loan of 1907 18’283,’950’00 Premium on loans of 1891 and 1907 5,418,826.58

$83,084,105.51 Leaving a balance added to the cash in the Treasury of 36,527,710.58 T0ta15119,612,116.09 As compared with the fiscal year 1887, the receipts for 1888 have increased $7, - 862,797.10, as follows: Source— - " Increase Internal revenue 55,478,480.76 Customs 1.804.280.50 Sales of public lands 1,947,730.81 Miscellaneous items 1’816,257.31 $11,041,749.38 Decrease. Soldiers’ home, permanent fund $793,070.18 Tax on national banks 63-7,284.38 Sales of old public buildings.. Sales of Indian lands 598,941.38 Miscellaneous items 524,774.19 $3,178,952.28 Net increase $7,862,797.10 There was a decrease in the ordinary expenditures of $8,278,221.30, asfollows: Decrease. Increase. Miscellaneous and civil.. $12,312,564.79 • Interest public debt... 3,026,539.78 War department 38,529.74 Pen5i0n555,259,406.98 Navy department 1,785,3'0.85 Indians 54,785.18 $15,377,724.31 $7,099,503.01 Net decrea5e.58,278,221.30 FISCAL YEAR 1889. For the present fiscal year the revenues, actual and estimated, are as follows: Customss2l7,ooo,ooo.oo Internal revenue 125,000,000.00 Hales of public lands 10,500,000.00 Profits on coinage, assays, etc 9,500,000.00 Tax on national banks 1’500,000.00 Fees—consular, letters-pat-ent, and lands 3,250,000.00 Miscellaneous sources 10,250,000.00 Total ordinary receipts. $377,000,000.00 The expenditures for the same period, actual and estimated, are as follows: Civil and miscellaneous ex-- .. ' Peuses $79,250,000.00 Indians. 6,250,000.00 Pensions 77,000,000.00 Military establishment 44,000,000.00 Naval establishment 21,000,000.00 Expenditures for the District of Columbia 4,500,000.00 Interest on public debt 41,000,000.00 Total ordinary expenditure55273,000,000.00 Estimated surplus, ap-

plicabio to purchase of bondsslo4,ooo,ooo.oo FISCAL YEAR 1890. The revenues of the fiscal year ending , June 30, 1890, are thxis estimated upon the I basis of existing laws: From customss2l7,ooo,ooo.oo From internal revenue.... 125,00000.00 From sales of public lands 10,000,000.00 From fees—consular, letj ters-patexit, and lands.. 3,250,00(100 From miscellaneous sources 21.250, I >oo.ou ■' * Total estimated receipts. .$377,000,000.00 1 The estimates of expenditures for the same period, as subnxitted by the sevex-al executive departments and offices, are as follows: Civil and miscellaneous exi pen5e5580,653,022.48 | Pensions... 81,758,700.00 Postal service. 4,403,414.90 District of Columbia 5,949,535.61 Miscellaneous 20,906,849.66 Perniaxxent annual appropriations— Sinking fund 47,800,000.00 I Interest on public debt.... 38,000,0<X).0b I Refunding—customs, internal revenue, lands, etc... 12,464,500.00 Collecting revenue from customs 5,500,000.00 Miscellaneous 4,927,555.95 Total estimated expenditures, including sinking fund... .$323,567,488.34 Ox- an estimated surplus 0f553,432,511.66 Excluding the sinking fund, the estimated expenditures will be $275,767,488.84, showing a suplus of $101,232,511.66. SINKING FUND. The requirements of the act of Feb. 25, 1862 (R. 8., 3688, 3689), establishing a sinking fund for the gradual extinguishment of the public debt, estimated for the current fiscal year at $47,583,000, have been thus far met by the redemption of treasury notes, fractional currency, and bonds of the United States, which had ceased ~ to bear interest, amounting to $77,797.35 and by the purchase of $26,839,650 of the funded loan of 1891, at a cost to the fund for premium of $7,672,222.29 on the forixxer and $844,206,73 on the lattexloan. SURPLUS REVENUE. In the last annual report it was estimate! that the revenues fox- the year to end June 30, 1888, would exceed the ordinary expenditures, not including the sinking fund, $113,000,000. It will be seen from the foregoing statement that such excess was in xeality $1.9,612,116.09, or $6,612,116.09 more than the department estimate. It was also estimated in the same report that the like surplus for the fiscal year to end June 30, 1889, would lie $104,318,365.64. Judging from the actual expenditures for the first quarter of this fiscal year, and in the light of receipts and expenditures to the middle of November, it is probable that this estimate will prove to have been fairly accurate, and that the surplus will almost exactly equal the predicted sum. The accumulated surplus on Sept. 29, 1888, was $96,444,845.84; the surplus revenues from that date to June 30, 1889, as estimated, are $85,365,203.25, making the total accumulation oxx June 80, 1889, which could l>e used in the purchase of bonds. $171,810,054.09; however, between said Sept. 29 and Nov. 22 $44,399,509.50 has been paid for bonds; consequently, it no more bonds were bought between now and June 30 next the surplus would then amount to $127,000,000. Upon the basis of appropriations recommended by the department, and upon the assumption that the revenues of the fiscal years to end June 30, 1889 and 1890, will be equal, the surplus revenues for the latter fiscal year will be $101,000,000, which, with the surplus revenues of this year and the sxxrplus already accumulated, make a total of $228,000,000, which might be used during the next nineteen months in the purchase of the interestbearing debt, and which ought to be used fox' that purpose unless the laws are to changed as to reduce the difference between expenditures ami revenue by nearly that sum.

About $188,000,000 of the 4J per cent bonds are now outstanding; they are payable Sept. 1, 1891. The total amount of interest which will accrue on them from now until their maturity is in round numbers $25,000,000; consequently the present surplus and the surplus which will probably accrue before July 1, 1890, will suffice to pay the principal of those bonds and all the interest which would accrue upon them should they l»e jiermitted to remain unpaid until their maturity. Tho principal of the 4 per cent bonds is now $680,000,000, and the interest which could accrue upon them until their maturity in 1907 is about $500,000,000; a calculation will show tliat the present surplus reventies, if continued, would pay before 1900 all of the 4 per cent bonds and all of this interest. Of course all the money which is saved by the purchase bonds less than the principal and the interest to accrue but shorten* the time when all the bonds may be paid if the holders will surrender them.

Nothing more is needed than the foregoing statement to show the absolute necessity of a readjustment of the public revenues at the earliest possible date. To continue taxation with no other use for its proceeds than such an investment is a cruel waste of the people’s money. PURCHASE OF BONUS. Since the last annual report, and after the completion of the sinking-fund requirements for the year ended Juno 30, 1888, no bonds were bought until there had been an expression of opinion by resolution in Iwth houses of Congress that it was lawful and proper to invest the surplus in bonds necessary to obtain them. The purchase was resumed under a circular of April 17, 1888, and since that time nearly all the bonds which have been offered for sale to the government have been bought by it. Ninety-four millions of dollars of bonds have been secured under this circular ami a premium paid for the privilege of buying them of about $18,000,000; the net rate of interest realized from this investment is only alwut 2 per cent and the- saving in the total amount of interest which would have been paid had the bonds been allowed l to run to maturity is about $27,000,000. Had taxation been reduced so as to leave thia money with the people, and if it is worth in their business 6 per cent j>er annum, the total value of the money to them during the term which these bonds had to run would be about $83,000,000; thus there is a resulting loss to the people of $56,000, - •XK) upon this transaction alone.