ediate and
extensive reductions in the annual revenues of the Government.

It will be remembered that I urged upon the attention of Congress at its
last session the importance of relieving the industry and enterprise of
the country from the pressure of unnecessary taxation. It is one of the
tritest maxims of political economy that all taxes are burdensome,
however wisely and prudently imposed; and though there have always been
among our people wide differences of sentiment as to the best methods of
raising the national revenues, and, indeed, as to the principles upon
which taxation should be based, there has been substantial accord in the
doctrine that only such taxes ought to be levied as are necessary for a
wise and economical administration of the Government. Of late the public
revenues have far exceeded that limit, and unless checked by appropriate
legislation such excess will continue to increase from year to year.
For the fiscal year ended June 30, 1881, the surplus revenue amounted
to $100,000,000; for the fiscal year ended on the 30th of June last the
surplus was more than one hundred and forty-five millions.

The report of the Secretary shows what disposition has been made of
these moneys. They have not only answered the requirements of the
sinking fund, but have afforded a large balance applicable to other
reductions of the public debt.

But I renew the expression of my conviction that such rapid
extinguishment of the national indebtedness as is now taking place is by
no means a cause for congratulation; it is a cause rather for serious
apprehension.

If it continues, it must speedily be followed by one of the evil results
so clearly set forth in the report of the Secretary.

Either the surplus must lie idle in the Treasury or the Government
will be forced to buy at market rates its bonds not then redeemable,
and which under such circumstances can not fail to command an enormous
premium, or the swollen revenues will be devoted to extravagant
expenditure, which, as experience has taught, is ever the bane of an
overflowing treasury.

It was made apparent in the course of the animated discussions which
this question aroused at the last session of Congress that the policy
of diminishing the revenue by reducing taxation commanded the general
approval of the members of both Houses.

I regret that because of conflicting views as to the best methods by
which that policy should be made operative none of its ben