most instances 3-1/2 per cent. Besides, the entire circulation was
originally limited by law and no increase was allowable. When the
existing banks had practically a monopoly of the business, there was
force in the suggestion that for the franchise to the favored grantees
the Government might very properly exact a tax on circulation; but for
years the system has been free and the amount of circulation regulated
by the public demand.

The retention of this tax has been suggested as a means of reimbursing
the Government for the expense of printing and furnishing the
circulating notes. If the tax should be repealed, it would certainly
seem proper to require the national banks to pay the amount of such
expense to the Comptroller of the Currency.

It is perhaps doubtful whether the immediate reduction of the rate of
taxation upon liquors and tobacco is advisable, especially in view of
the drain upon the Treasury which must attend the payment of arrears of
pensions. A comparison, however, of the amount of taxes collected under
the varying rates of taxation which have at different times prevailed
suggests the intimation that some reduction may soon be made without
material diminution of the revenue.

The tariff laws also need revision; but, that a due regard may be paid
to the conflicting interests of our citizens, important changes should
be made with caution. If a careful revision can not be made at this
session, a commission such as was lately approved by the Senate and is
now recommended by the Secretary of the Treasury would doubtless lighten
the labors of Congress whenever this subject shall be brought to its
consideration.