Little Falls transcript. [volume] (Little Falls, Morrison County, Minn.) 1876-1894, 1879-03-20

throat in q transverse form, and, once lodged
at the furthest point, displacement was i'm.
possible.
A PROSPECTIVE DEFICIT.
Washington Special (March 81 to Chicago Trib
une.
Several times since the adjournment Of
Congress Secretary Sherman has been asked
in what manner he proposed to meet the
prospective deficit which Congress had take1
measures to create in the national treasury
Hitherto he has usually replied that thu
matter required closer examination than hi
had been able to give it, and he has request
ed not to be quoted as authority for an,
opinions in regard to the matter until he hac
given the subject more attention: In tn,
course of q conversation on Saturday, thu
secretary expressed some views on this gen.
eral subject which may be taken az fore
shadowing, to some. extent, the probable
policy of the treasury department in regarl
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 o.
this conversation he allows to be published
'IwAs SURPRISED BEYOND MEASURE
when the Arrears-of- Pensions bill passed. >
said the secretary, in reply to an inquiry. 81
was an avalanche, volcanic eruption. ]
did not dream that Congress, which had
shown commendable zeal in pairing ,an6
scraping down the pay of clerks, would sud:
denly require an expenditure of $41 900,
600. knew the bill was pending, but &C
was the Bounty bill, the Texas Pacific rail
road bill, the bill refunding the cotton tax,
and many others. counted on the pru.
dence and economy of the committee of ap.
preparations. I had made hopeful esti-
mate of $28,000,00O surplus for the next
fiscal year, and actually increasing revenue
justified the estimates of the department.
To say that was surprised when myhoped
for surplus was converted into a deficit OF
$13, OO0, 900 is to express it very mildly. In
q strict sense
THIS MONEY WAS NOT DUE,
for it could scarcely be said to be due until
demanded. The true rule would be to date
the pension from the date of application.
would have voted for such law. am well
assured the pensioners would have been sat-
isfed 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 as 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 M10AwBER'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 I 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
foreseen demands appropriated for that must
be met, but some of them are known, and
among them is one for
$75O,OOO FOB CAPT. EADs,
for the Mississippi jetties, which was en-
tirely unexpected. The tobacco bill will
lose us about $40, O00, 600 of revenue. Still
We have q 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, I hope not. This would be pretty
In the opinion of some fpro-
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 sufh-
Gent. That question is left with the de-
partment. I think the present reserve Q
$1S7, 000, 900 is not too large. If it is draw
upon !
MUST MAKE THE DEFICIENCY GOOD
by the sale of bonds, as I am plainly re-
quired by the resumption act to do" =:
= evil they not charge you with increasing lo9
the public debt?'' 80
'That depends upon what you mean by
they Some editors say I am increasing
the public debt when I sell per cent. bonds
to pay an equal amount of 6 per cent. bonds
with q loss of three months interest. I sup
pose. the same class Of editors will say I in
crease the debt when Congress requires me
to pay out more money than can be collected
in taxes.
THIS TALK WOULD NOT Ms1EAD 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
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 biz
discretion as to which of the appropriations
by Congress he must postpone, for he can
not pay $3.50, 600, 600 Of appropriations with
$3.50, 100000 Of revenue."14 'l'% '.':-sS', III