annual contributions to the sinking fund during the three years
above specified, amounting in the aggregate to $138,058,320.94, and
deducted from the surplus as stated, were made by calling in for that
purpose outstanding 3 per cent bonds of the Government. During the six
months prior to June 30, 1887, the surplus revenue had grown so large by
repeated accumulations, and it was feared the withdrawal of this great
sum of money needed by the people would so affect the business of the
country, that the sum of $79,864,100 of such surplus was applied to
the payment of the principal and interest of the 3 per cent bonds
still outstanding, and which were then payable at the option of the
Government. The precarious condition of financial affairs among the
people still needing relief, immediately after the 30th day of June,
1887, the remainder of the 3 per cent bonds then outstanding, amounting
with principal and interest to the sum of $18,877,500, were called in
and applied to the sinking-fund contribution for the current fiscal
year. Notwithstanding these operations of the Treasury Department,
representations of distress in business circles not only continued, but
increased, and absolute peril seemed at hand. In these circumstances
the contribution to the sinking fund for the current fiscal year was at
once completed by the expenditure of $27,684,283.55 in the purchase of
Government bonds not yet due bearing 4 and 4-1/2 per cent interest,
the premium paid thereon averaging about 24 per cent for the former and
8 per cent for the latter. In addition to this, the interest accruing
during the current year upon the outstanding bonded indebtedness of
the Government was to some extent anticipated, and banks selected as
depositories of public money were permitted to somewhat increase their
deposits.

While the expedients thus employed to release to the people the money
lying idle in the Treasury served to avert immediate danger, our surplus
revenues have continued to accumulate, the excess for the present year
amounting on the 1st day of December to $55,258,701.19, and estimated to
reach the sum of $113,000,000 on the 30th of June next, at which date it
is expected that this sum, added to prior accumulations, will swell the
surplus in the Treasury to $140,000,000.

There seems to be no assurance that, with such a withdrawal from use of
the people's circulating medium, our business community may not in the
near future be subjected to t