And State Papers 555 



the banking function; but there seems to be need 

 of better safeguards against the deranging influence 

 of commercial crises and financial panics. More- 

 over, the currency of the country should be made 

 responsive to the demands of our domestic trade and 

 commerce. 



The collections from duties on imports and in- 

 ternal taxes continue to exceed the ordinary ex- 

 penditures of the government, thanks mainly to the 

 reduced army expenditures. The utmost care should 

 be taken not to reduce the revenues so that there 

 will be any possibility of a deficit ; but, after provid- 

 ing against any such contingency, means should be 

 adopted which will bring the revenues more nearly 

 within the limit of our actual needs. In his report 

 to the Congress the Secretary of the Treasury con- 

 siders all these questions at length, and I ask your 

 attention to the report and recommendations. 



I call special attention to the need of strict econ- 

 omy in expenditures. The fact that our national 

 needs forbid us to be niggardly in providing what- 

 ever is actually necessary to our well-being, should 

 make us doubly careful to husband our national re- 

 sources, as each of us husbands his private resources, 

 by scrupulous avoidance of anything like wasteful 

 or reckless expenditure. Only by avoidance of 

 spending money on what is needless or unjustifiable 

 can we legitimately keep our income to the point 

 required to meet our needs that are genuine. 



In 1887 a measure was enacted for the regulation 

 of interstate railways, commonly known as the In- 



