first quarter of the current year the sum of $37,838,937.77, all of
which were credited to the sinking fund. The revenues for the fiscal
year ending June 30, 1891, are estimated by the Treasury Department at
$385,000,000, and the expenditures for the same period, including the
sinking fund, at $341,430,477.70. This shows an estimated surplus for
that year of $43,569,522.30, which is more likely to be increased than
reduced when the actual transactions are written up.

The existence of so large an actual and anticipated surplus should
have the immediate attention of Congress, with a view to reducing the
receipts of the Treasury to the needs of the Government as closely as
may be. The collection of moneys not needed for public uses imposes an
unnecessary burden upon our people, and the presence of so large a
surplus in the public vaults is a disturbing element in the conduct
of private business. It has called into use expedients for putting
it into circulation of very questionable propriety. We should not
collect revenue for the purpose of anticipating our bonds beyond the
requirements of the sinking fund, but any unappropriated surplus in the
Treasury should be so used, as there is no other lawful way of returning
the money to circulation, and the profit realized by the Government
offers a substantial advantage.

The loaning of public funds to the banks without interest upon the
security of Government bonds I regard as an unauthorized and dangerous
expedient. It results in a temporary and unnatural increase of the
banking capital of favored localities and compels a cautious and gradual
recall of the deposits to avoid injury to the commercial interests. It
is not to be expected that the banks having these deposits will sell
their bonds to the Treasury so long as the present highly beneficial
arrangement is continued. They now practically get interest both upon