Democratic Sentinel, Volume 13, Number 48, Rensselaer, Jasper County, 20 December 1889 — MONEY OF THE NATION. [ARTICLE]

MONEY OF THE NATION.

SECRETARY WISDOM’S REPORT OF TREASURY MATTERS. Amounts Received and Disbursed by the Government—The- Silver Question Considered—The Secretary's Plan Regarding; It—Various Other Matters Discussed. The Secretary of the Treasury in his annual report shows that the total ordinary revenues or sue government from all sources for the fiscal year ended June 30, 1889, were $-'84,050,038.84, and the expenditures $281,990,443.60, leaving a surplus of $105,413.24. < Of this there was used for the redemption of notes and fractional currency and purchase of bonds $47,583,313 65, leaving a net surplus of * 57,470,129 59 for the year. For the present year the revenue-!, actual and estimated, are $385,000,000 and the expenditures $293,000,000. The estimated amonut required for the sinking fund is $48,321,116 ii 9, leaving a net surplus of $13,678,883 01. As compared with $103,220,461.71 at the close of the fiscal year 1888, the cash balance in the trea-urv over and above all accrued liabilities at the close of 188 y was $71,484,052.39. If to this balance there be added the estimated surplus for the current fiscal year the amount that may be applied to the purchase of bonds to June 30, 1890, will be $163,484,042.39. Bonds and other obligations of the United States have already been purchased and redeemed to the extent of $ >0,465,485.49, leaving the available cash on hand Nov. 1. 1889, $15,335,767.40. Tiie amount estimated for pensions for the year 18c9 was $76,312,406 and the esmates for same purpose for the year 1891 are $98,587,252, showing an apparent increase of $22,274,852. These figures, the Secretary says, do not even approximately represent the actual increase of expenditure for pensions, because the estimate for the year 1889 was wholly inadequate to meet the demands of the service. The amount regularly appropriated for pensions for that year was $81,757,700. To this was added a deficiency appropriation by last Congre-s of $8,000,000, and about $8,000,000 more was necessarily drawn from the appropriations for the current year to pay pensions due ir the fiscal year 1889 but for which sufficient appropriations had not been made. The total amount, therefore, which was actually required for pensions for tho fiscal year ended June 80. 1889, was $95,624,779 11. The amount appropriated for pensions for the current year was the same as last year, $81,753,700; but there is an estimated deficiency of $24,000,000 for this year, making a total of $105,758,700; deducting from this the $8,000,000 drawn out, as above stated, to meet the deficiency for last year, will leave chargeable to the current year $97,758,700. The total net receipts from internal revenue for the fiscal year 1889, were $1- 0,881,513.92, being an increase over the year 1888 of $6,584,64',94. During the twelve months ended Oct. 31, 1889, there were purchased under the circular of April 17, 1888, United States bonds to the amount of $99,233,950. Of those $32,279,400 were obtained prior to March 4, 1889, and $66,954,550 after that date. The Secretary thinks a part of the surplus might be used in enlarging our foreign markets, strengthening the coast defenses, and building up the navy. The expedient of purchasing bonds is of doubti ful wisdom, he says, because it is manifestly wrong to take money from the people for the cancellation of bonds, to the saving of only about 2 per cent of interest, when it is worth to them, perhaps, three times as much in their business. It is rather through a reduction of customs receipts and internal taxes that an unnecessary accumulation of money in the treasury should be avoided. A table is given showing that the total tax on tobacco was $31,866,837 53. The repeal of this tax would reduce the surplus about $32,090,001. •‘There is a general agreement, ” savs the Secretary, “that a revision of the tariff and customs laws is urgently needed. I believe it to be the dominant sentiment of the conntrv that in the adjustment of duties on imports protection to home industry should be a governing consideration.” The Secretary recommends that the many inequalities, conflicting provisions, and ambiguities in the present law b 9 corrected, and that uniformity of assessment at the various ports be secured if possible. A large part of the report is devoted to details of the customs ser ice and to tables giving statistics of imports and exports during the last three fiscal years. On the question of silver coinage the Secretary says: “The continuod coinage of the silver dollar, at a constantly increasing monthly quota, is a disturbing element in the otherwise excellent financial condition of the country and a positive hinderance to any international agreement looking to the free coinage of both metals at a fixed ratio. No proper effort has been spared by the Treasury department to put in circulation the dollars coined, but without success, and the point has been, or soon will be, reached where the further coinage of silver will become a waste of public money.” The Secretary then makes the following important recommendation: “Issue treasury notes against deposits of silver bullion at the market price of silver when deposited, payable on demand in such quantities of silver bullion as will eaual in value, at the date of presentation, the number of dollars expressed on tho face of the notes at the market price of silver or in gold, at the option of the government, or in silver dollars at the option of the holder. Repeal the compulsory feature of the present coinage act” Among the advantages which tne Secretary claims for the measure are that it would bring into use all the money metal of the country; it would give a paper currency not subject to undue or arbitrary inflation or contraction; it would enhance the value of silver and open the way to its free coinage; gold would be relieved of part of the work required of it; it vould meet the wants of those desiring a larger volume of circulation, and t would be advantageous to silver producers. The Secretary gives many facts md figures tending to support the position taken bji him. The report concludes with a brief conideration of matters relating to national •anks, immigration, Cliineseexriusion act, internal revenue, and the civil service.