The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1879-03-19
A PROSPECTIVE DEFICIT.

A PROSPECTIVE DEFICIT.
Washington Special March 81 to Chicago Trib-
...f ii% une. &a E.5s.s
Several times since the adjournment of
Congress Secretary Sherman has been asked
in what manner he proposed to meet the
to create in the national treasury
matter required closer examination than he
ed not to be quoted as authority for any
opinions in regard to the matter until he had
given the subject more attention.. In the
course of conversation on Saturday, the
secretary expressed some views on this gen.
eral subject which may be taken as fore
shadowing, to some extent, the probable
policy of the treasury department in regard
to the legislation of the session just closed,
while at the same time it embodies the SEC
retary's personal views of some of the meas
ures which were passed. The substance of
this conversation he allows to be published.
WAS SURPRISED BEYOND MEASURE a
when the Arrears of Pensions bill passed.
said the secretary, in reply to an inquiry. cit
was an avalanche, volcanic eruption. I
DID not dream that Congress, which had
shown commendable zeal in pairing and
scraplng down the pay of clerks, would sud-
denly require an expenditure of 1000,
OOO. l knew the bill was pending, but so
was the Bounty bill, the Texas Pacific rail-
road bill, the bill refunding the cotton tax,
and many others. I counted on the pru-
dence and economy of the committee of ap-
preparations. I had made hopeful est
mate of $28,0O0,0OO surplus for the next
fiscal year, and actually increasing revenue
Justified the estimates of the department.
10 say that was surprised when my hoped
for surplus was converted into q deficit of
$lS,OOO,OOO is to express it very mildly. In
strict sense -.-.... +.
THIS MONEY WAS NOT DUE,
for 1t could scarcely be said to be due until
demanded. The true rule would be to date
the pension from the date of application I
would have voted for such law. am we'll
assured the pensioners would have been sat-
lstled with such rule, and then we would
have had no such sudden and dangerous de-
mand upon our resources. This bill was not
demanded by the pensioners, but by claim
agents, and will work great inequality. Those
whose disability was not developed for years
after the war
WILL GET AS MUCH AS THOSE WHO SUFFERED
DAILY
from wounds and Sickness
"Can you pay the arrears of pensions with
out embarrassment"
"Oh, yes; we can pay by borrowing. The
money ought to be paid promptly. There is
no use in whining about it. There are no
more deserving people in the United States
than those who will get this money. I am
for paying them in money IS soon as the
claims can be stated by the pension Office.
But this can only be done by borrowing, and
Congress has refused authority to borrow
If the department.
HAD MICAWBER's REMEDY,
to pay by note, it could easily do so, but to
pay without money or authority to give a
note, is financial problem that cannot
solve. All that can be done is to pay as fast
as current receipts will allow, or defer such
expenditures as are within the discretion of
the President, as for rivers and harbors, pub
lie buildings, and the like. have not yet
fully ascertained the claims and other I'M
foreseen demands appropriated for that must
be met, but some of them are known, and
among them is one for
$3.50, 900 FOR CAPT. EADs,
for the Mississippi jetties, which was en-
tirely unexpected. The tobacco hill will
lose us about $50, 100000 of revenue. Still
we have a surplus which was pledged to the
sinking fund, but is now diverted by Con-
gress to the payment of these arrears of pen
sions, and will probably be sufficient to pay
them within two years without increasing
the public debit
"But it is said Congress intends to have
them paid out of the resumption funds"
"Oh, hope not. This would be pretty
subterfuge. In the opinion of some pro-
phets of evil who said resumption would
fall, the fund is not now and never was
large enough. The friends of resumption
believed that fund of 40 per cent. of the
United States notes outstanding was sufi-
Gent. That question is left with the de
partment. I think the present reserve
$137,OOO,O 900 is not too large. If it is draw
upon ,r-.....,
MUST MAKE THE DEFICIENCY GOOD
by the sale of bonds, as am plainly re-
quired by the resumption act to do.'' ~|
evil they not charge you with increasing
the public debit" 't.r
"That depends upon what you mean by
they Some editors say am increasing
the public debt when sell per cent. bonds
with loss of three months interest. sup
pose the same class of editors will say in
crease the debt when Congress requires me
to pay out more money than can be collected
IN taxes.
THIS TALK WOULD NOT M1sLEAD AN OSTRICH.
The truth is that both Congress and the
country have found out that our poblic debt
will be temporarily increased by the large
payments required under the recent pension
act, and the better way is to acknowledge the
fact and borrow the needed money on the
best terms possible. If that is not deemed
advisable, the President must exercise his
discretion as to which of the appropriations
by Congress he must postpone, for he can
not pay rgS of appropriations with
$500, 100000 of revenue
A TERRIBLE DEATH,
The SiNOMIur accident Witch Com De(led a