Rensselaer Republican, Volume 16, Number 13, Rensselaer, Jasper County, 6 December 1883 — FINAMCE. [ARTICLE]

FINAMCE.

Abstract of the Report o< the Secretary «t the Treasury. - I year ending June 30, lives, shows that the oral nary revenues of the Government for the yea* were as follows; Customs, $214,706,49'7; internal revenue, $144,720,369; sales of public lands, direct tax, $18,1*7; miscellaneous. $30,796,695; total, $39h.287,58X Ordinary expenses: Civil and miscellaneous, $68,678,022; Waridepartment, $48,911,383; Navy department, $15,283,437; Indian*, $7,362,500: pensions, $64,01X574; interest on public debt, $50,160,132; total, $265,401,138, leaving a surplus revenue of $12,879,444. This is $7,W>,00 more than Mr. Foiger estimated that the surplua would amount to in his last annual report. Compared with the previous fiscal year, the receipts for 1883 have decreased, in customs $3,704,233; in internal revenue, $1,777426; tn direct tax, $51,986. and in m s-cllaneous, $906,948. They have for reared in sales of public lands $3,202,724. Total decrease, $1X664,367. The expenditure* show an Increase over the year before of $7,526,697 The expenditures of the War department increased $5,400,000; foe the Navy department, $230,000. and for pen-sions-nearly $5,000,000, while the interest on the public debt decreased almost SIXOOO,OOO. Since the last annual report the act ofsta*l4X 1883, diminished the sources of internal revenue and changed the tariff law, soafhat 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 $120,001,000. The receipts from customs have fallen off proportionately. For the four months ending Nov. 1, the total receipts were $124,360,985: for the corresponding months of last year thev wera $114,96X932. For the same periods the expenditures were SBO- - and $18,706,681. By the payment of $207,000,000 of the public debt, the charge for interest will be greatly reduced. It is probable that the receipts will be. alxmt $350,000,000 for the fiscal year 1881, 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 (hat the receipts of the Government are greatly in excess of its need*. The dangers of this large surplus to the moriey marxet 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 nubile 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 nei-'h)K>rhood ot $280,000,000. and of this the banks hold about $200,000,000. It payment of the public debt is to be permitted to go on. even this year, as It has during the last fiscal year, the existence of a good many, national banks is threaten id", and this means a sensible contraction of the currency. If the income »of the Government remains as it is, the Secretary of the Treasury will call at least $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 s a* 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 t;ie mode of reducing the revenues. the Secretary opposes the abolition ot' the internal-revenue tax. It is estimated that this fox will yield unde.- 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 ot custom* duties, after a proper inquiry shall have developed what articles can best stand the reduction. Sugar, at least, the Secretary thinks, ought to toay 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 reduction 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 axe 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 issue otortionSl 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 bolder* receiving a premium in satisfaction for th* resultant loss of interest.