Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-12-04

count Of the broad view taken OF the financial
situation Of the country and the original and
important recommendations made
FINANCIAL STATEMENT FOR THE PAST FISCAL YEAR.
During the fiscal year ended June 80. 1889,
the ordinary revenues of the government we're
1857, ,O50, ,05s.s4. The highest item was Gus
toms, S22S, sS2, 74l.69; internal revenue, $780,
ssl, ,5l39 %; revenues of the District of Colum-
bia, g, SIS, 5000; profits on coinage, bullion
deposits and assays, SlOl65 2G47s. The or
dinary expenditures of the government were
S2sl 9s6. CISCO, of which s25 566 lsl O5 was for
clvll expenses, Ss7 7,624.779.ll for pensions,
S5.2iS.669.S2 for expenditures in the District
OF Columbia and S4l. .00l. Asa 29 for interest on
the public debt. There was a surplus of receipts
OF SlO5, ,O53,4 ,443.24 over the expenditures; OF
which the sum of si7, .SlS 65 was used in the
redemption of notes and fractional currency
and the purchase of bonds for the sinking fund,
thus leaving net surplus for the year of $751;
4fo'lZ539. As compared with the year 'SS the
receipts Tor SO have increased S7, 7SS gs9 0s
net. There was net increase OF S22. .S42. Csc 80
IN the expenditures OF which S25. .056. $50. IL
was gross increase to pensions. civil and mlscel-
iaheous expenses, War and Navy departments
and Indians; the only decrease was OF s7l3,-
a2Sle IN interest on the public debt
THE PRESENT AND NEXT FISCAL YEAR
For the present fiscal year the revenues.
~.
expenditures s29S 900, 900, leaving an estimated
surplus applicable to the purchase of bonds.
Oh sy2O0OOOO OF this il is estimated that
80, S,32l SO will be required for the sinking
1und, thus placing the estimated net surplus
for the year at S43.61s. .Ss3.0l
The revenues for the fiscal year ending June
5o 1871, are estimated at sSS5. 600 900, the same
as Tor 1890 and the expenditures as estimated
by the executive departments, are S292-
2l. .4O47O, leaving an estimated surplus OF
S9z,f2S,595.3O, of which the net sum will be
S43, ,569, ,52230.
REDUCING THE PUBLIC DEBT.
The net surplus for 1889, altogether amount
ing to $50, ,979, i27.35, was applied to the pur-
chase and redemption of the debt As COM
pared with Sl09 go 464. II at the close of tho
nScal year 1883. the cash balance in the Treas
ury over and above all accrued liabilities at
the close of 1889 was S7l. .4S4 O42 80; adding the
estimated surplus for the current fiscal year,
the amount that may be applied to the pur-
chase OF bonds TO June 30. 1880, will be Si63.-
AS, ,O42. 80. Bonds and other obligations OF
the United States have already been purchased
and redeemed to the extent of $50 i65 asa az
leaving the available cash on hand Noyem-
Der i, 1889, S45, 1886. 762. 40
EXPENDITURES FOR PENSIONS.
The Secretary says:
comparison of the expenditures of 1879
with those of 1889 will show that during the
last ten years the increase of pensions has not
differed very widely from the decrease of in
terest on the public debt:
Pensions in 1879 ..... s35 12l 4s2 20
Interest on public debt, 1879. lO5 s27, ,94s 90
Interest on public debt, lSS9.... 4I.OOI, 4s4 20
No patriotic American has ever complained
OF the vast amounts of interest paid to the men
who loaned their money to preserve the in
tegrity OF the nation; much less will they COM
PLAIN OF any Just and proper recognition of the
claims Of men who, in the nations hour of ex-
treme peril sacrificed their lives and health TO
save it,
Under the sinking fund act of February.
1862, there have already been redeemed this
hscal year fractional currency, Treasury notes
and bonds of the United States which had
ceased to bear interest, amounting TO SlI $40.
In addition TO the purchase of SI2 1876 $50 OF
the funded loan of 1891 and 27,695. GOO of the
funded loan of 1907. at a cost 70 the fund for
premium of S7,536, ,05S.37 on the former and
S7l0, ,666.79 on the latter loan.
BIO RECEIPTS.
The total receipts of the last fiscal year have
been exceeded but six times in the history of
the government The ordinary expenditures
OF the fiscal year ended June 80. 1889 exclu-
slve OF premium on bonds, were also greater
than in any other year, except during the war
period, and the years which bore its cost most
heavily, being s22, $40. Csc 90 greater than for
the fiscal year 1855. The expenditures for the
last quarter of the fiscal year 1889 we're SO 79O-
6s6 "a less than for the last quarter OF the fiscal
year 1885,
PURCHASE OF BONDS.
During the twelve months ended October 81.
1889, there were purchased under the circular q
April IL. 1885, United States bonds to the amount
of S99, 233, $50. OF these $50 279 400 we're OBJ
tanned prior to March 4, 1859, and sec. .g54 $50
after that date. Notwithstanding the dimin-
ished supply of bonds for sale in the markets
the government has been able TO obtain at con-
startly decreasing prices a sufficient amount Of
bonds to meet the requirements of the sinking
fund for the current fiscal year and carry out
the provisions of law respecting the investment
OF the surplus revenue. While II was neces-
sary to pay l0S for A per cent bonds OF 1891
purchased March 5. 1889, with a net premium
of 7g7, they were offered and accepted October
81 at 1861, the net premium being L. 90, a de-
crease III actual premium of nearly per cent
During the same period, or from April to Oc-
tober 81, 1883, the price Of per cent bonds
premium from 2S.93 10 26.66, a reduction in
actual premium of over % per cent
SURPLUS REVENUE.
''It appears from the foregoing estimates"
SAYS the Secretary, ''that after due provision
shall have been made for meeting the ordinary
expenses of the government. including the re-
quirements of the sinking fund. there will re-
main, under the operation of existing laws, an
annual surplus of revenue of about S44, ,0O0. .OO0"
The first thing that occupies the Secretary's
attention. after making a statement of the re-
ceipts and expenditures, actual and estimated,
showing an annual surplus OF S44, ,000, ,000 is the
subject of this accumulation of surplus and the
iscussion of a means of reducing il.
IAN accumulation OF money in the Treasury
beyond the necessities Of the government" he
says, .'endangers legitimate business, tends to
excessive and wasteful public expenditure and
to encourage extravaganza in private affairs.
In the presence of such conditions il ID a mani-
fest duty to wisely guard against future need.
less accumulation with ITS fruitful train Of
evils.
MEANS OF REDUCTION.
If Q portion of the surplus revenue can be
used to enlarge our foreign markets, and
thereby advance our commercial and produce
tive interests, it is the part of wisdom to so
apply il. The strengthening Of our coast de.
fences and the building up Of our navy sub.
jects of national concern, offer further oppor-
tunity for wise expenditures that would return
the money directly to the people. But, after
making provision for such expenditures as NAV
be proper and reasonable for these purposes a
large annual surplus will still remain under
the operation Of existing laws. Reduction Of
the interest-bearing debt of the governments.
by the purchase of bonds is the expedient re-
sorted TO for returning part of this surplus to
the channels OF trade, and is the only means
now open TO the Secretary Of the Treasury for
the use OF his money. To require from him
this measure OF responsibility and discretion 10