Rensselaer Republican, Volume 12, Number 12, Rensselaer, Jasper County, 4 December 1879 — Annual Report of the Secretary of the Treasury. [ARTICLE]

Annual Report of the Secretary of the Treasury.

The following are the principal points of the report of Secretary Sherman: The ordinary revenues from all sources for the fiscal year ending June 90 were $273,827,184.48. The ordinary expenditures for the same period were $266,947.8 -0.53, leaving a surplus revenue of t«.R79,: Q > 98. The amount due the sinking fund for uie year was $38,955,014.83, leaving a deficiency of this amount of $£0,078,308.70. After applying the balance of the special four and a half per cent. United Btates notes held in the Treasury for the redemption of fractional currency, amounting to $8,375,934, to the payment of arrears of pensions as directed in Section 3 of the act approved June 21, 1879, the increased revenue derived during the months of July, August and September of the present year was fully absorbed by current expenses, and the payment of f 1n.:(74.e0 arrears of pensions, accruing under the act approved January £5, 1879. Notwithstanding these unusual demands, the Department has been able to purchase and apply to the sinking fund, out of the surplus revenues for the month of October, $10,060,000 six per cent, bonds of 1881; and $676,060 in five r-r cent, bonds issued under the act of March 1864. The latter Is the excess of redemption of these bonds over issues of four percents under the Refunding acts, and, unless unexpected appropriations, available for expenditure within this year, arc made by Congress, tbe surplus revenues, in addition to paving off the balance of arrears of pensions, will probably enable tbe Department to apply to the sinking fund account during the year the sum Of $20,(00,000. The revenues of the fiscal year ending June 80,1881, estimated upon existing laws, will be $288,000,000. The estimates of expenditures for tne same period, received from the several Executive Departments, are $27R,097,864.39, or an estimated surplus of $9,902,635.61. Excluding the sinking fund, the estimated expenditures will be $283,200,136.67, showing a surplus of $49,730,861.33. The estimated expenditures are based upon the requirements of existing law and the necessary appropriar tlons for public works In course of construction. The estimated surplus of $9,902,635.61 will probably be exhausted by additional appropriations. Should Congress Increase the appropriations beyond this limit, or repeal or reduce existing taxes, other sources of revenue must be provided. Should this course be determined upon, which, however, the'Secretary does not recommend, he would suggest as a means of meeting the deficiency the restoration of a moderate duty on tea and coffee, and the levying of an internal tax uoon manufactures of opium, as hereinafter more fully stated. With a view to promote economy, the Secretary ventures to suggest for the consideration of both Houses a permanent organization of an Appropriations Committee for each House, who shall have leave to sit during the recess, with power to send for persons and papers, and to examine all expenditures of tne Government; that rules be adopter! in the respective Houses limiting Appropriation bills to items of appropriation, and excluding legislative provisions; that ail appropriations, except for the interest of the fiublic debt, be limited to a period not exceedng two years, and that their expenditure be strictly confined to the period of time for wbicfltthey are appropriated, and that all permanent and indefinite appropriations made more than four years ago, except that for the public debt, be repealed.

RESUMPTION. At the date of my last annual report, Bto cember 28, 1878, the preparation for the resumption m specie payments provided for by the act approved January 14, 1875, had been substantially completed. On the Ist day of lanu&iy, 1879—the day fixed for the resump tlon of specie payments—the reserve of com over and above all matured liabilities was $133,508,804.50. Previous to that time. In view of resumption, United States notes and coin were freely received and paid in private business as equivalents. Actual resumption commenced at the time fixed by law, without any material demand for coin and without disturbance to public or private business. No distinction has been made since that time between coin and United StHtes notes In the collection of duties or In the payment of the principal or interest of the public debt. The great body of coin indebtedness has been paid in United States notes at the request of creditors. The total amount of United States notes presented for redemption from January Ito November 1,1879, was $11,256,678. But little coin has been demanded on the coin liabilities of the Government during the same period, though the amount accruing exceeded $600,000,000. Meantime coin was freely paid into the Treasury, and gold bullion was deposited in the Assay office and paid for in United States notes. The aggregate gold and silver coin and bullion in the Treasury increased during that period from $167,558,734.19 to $225,133,568.72, and the net balance available for resumption Increased from $133,508,804.69 to $152,737,155.48. In accordance with the position taken In the last annual report. United States notes have been received since January 1 last in payment of duties on imports. To meet the local demand for coin, in places other than New York city, persons applying have been paid' silver coin for United States notes, tho coin being delivered to them on established express lines free of expense, and for some time gold and silver coin has been freely paid out at the sub-treasuries upon current obligations of the Government. There has been, however, but little demand for coin, and United States notes and the circulating notes of National Banks have been received and paid out at par with coin in all business transactions, public and private, in all parts of the country. The specie standard thus happily secured, has given an Impetus to all kinds of business. Many industries, greatly depressed since the panic of 1873, have revived, while Increased activity has been shown in ail branches of production, trade and commerce.

The reserve fund created by the Resumption act could not, without further legislation, be applied to the payment of ourrent appropriations; nor is it to be presumed that Congress will omit to provide ample revenue* to meet such appropriations. Therefore, under existing laws, the notes received into the Treasury in exchange for coin will always be available for the purchase of or exchange for coin or bullion. Any United States notes in the Treasury may be exchanged for coin under the authority of Bection 8,700 of the Revised Statutes, when notes cannot be used at par for that purpose they must necessarily remain in the Treasury. To avoid all uncertainty, it is respectfully recommended that by law the resumption fund be specificallydefined and set apart for the redemption of United States notes, and that the notes redeemed shall only be issued in exchange far or the purchase of coin or bullion. NATIONAL BANKING SYSTEM. The report of the Controller of the Currency gives oomplete statistics relative to the National Banking system from its organization until the present time. The number of banks in operation October 2 of the present year, the date of their last reports, was 2,015, and the aggregate capital, $404,067,265; surplus, $114,786,528; individual deposits, 8710,737.560; specie, including United States coin certificates, $42,173,731.23; legal-tender notes, including United States certificates, $95,973,446; as loans, $828,013,107. The total circulation outstanding on November 1 was $337,171,418. Among the subjects discussed in the report are the relations which have existed between the National banks and the Government in the resumption of specie payments, and in the funding of the public debt. In both of these important financial operations the co-operation of the National banks has been of essential servioe to the Government. CUSTOMS COLLECTIONS. The disbursements for collecting the revenue from customs for expenses incurred within the following fiscal years have been as follows: 1877, $6,301,279.67; 1878, $6,525,787.38; 1879, $5,485,779.03. This shows a reduction for 1878 over 1877 of $778,492,26, and a reduction for 1879 over 1878 of $40,00&29. A marked improvement has also occurred during tbe past year in the collection of the revenue from customs. The revenue, under the ad valorem system, has fallen short of the amount which should have been collected upon a proper assessment of the real foreign market value. This was due to a system of undervaluations in the entries at the CustomHouses, especially upon bonds consigned by foreign manufacturers to agents in the United States. OCR MERCHANT MARINE. The total tonnage of vessels of the United States at the close of the fiscal year ended June 30, 1879, was 4,169,600 tons. It is a grave question of public policy whether the period has not arrived when the unlimited right of purchase, as under tbe English statutes, should be extended to vessels as well as to other commodities, and when admission to American registry upon the payment of duties should be allowed them upon importations. The recovery of our old position in the carrying trade will more than counterbalance any disadvantage likely to ensue upon a modification of restrictions upon the right of purchase, while a moderate duty upon ships imported will enable our shipbuilders to compete successfully In the construction of I row vessels of tiia largest class. The councils for the settlement of trade disputes in France in their last year considered 86,046 cases. Of this number 25*884 were heard in private, and a reconciliation was effected in 18,415 .(seventy-one per cent.); 7,555 could not be reconciled, and were remitted for hearing to the general council, and 9,076 differences were settled upon advice of the councils. As to the causes of dispute, 21,368 cases were relative to wages; 4,733 to dismissal, and 1,795 to matters affecting apprentices. —ln return for jokes played upon others, some one filled the overcoat pocket of E. P. Guise, a young attorney of Williamsport, Pa., with steel pens. A number of them stuck in his hand, and in taking them put several broke off. The hand became terribly swollen, and fatal consequences were feared. —Ash Wednesday in 1880 will occur on February 11, and lister on the 28th of March, i