Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-12-02
NATIONAL FINANCES.
Annual Report of the Secretary of
the Treasury.
THE SEPTEMBER CRISIS.
How Serious Disaster was Averted by the De-
partment-The New Tariff Law-Silver OPP
Observation-Disclosures of Receipts and Ex-
Neutrality-suspicious. Recommendations.

Secretary Window, in his annual report
which was submitted to Congress yesterday
states that the revenues of the government
from all sources for the past fiscal yea,
amounted to S463 963. $50. So, while the expendi
lures for the same period were s}5S. SIS. 5S4. 50
The net surplus for the year, making certain
allowances for bond purchases ard Other
things was S57.2i9. 931.37. The receipts showed
a net increase of SIG O30 923. 20 and the ordinary
expenditures Of S15.739S7I. The revenues for
the present year are estimated ut S4O6, 900 DOC
and the expenditures at S354. COO OoO. The
revenues for 1892 are estimated at 1913.
0OO. 900 and the expenses at 1851 $50, 200 AZ
showing a surplus of S15. 141, 7S0.5 SO.
WHAT WILL INCREASE THE EXPENDITURE.
The increase of SIS. $50. sOi.72 in the esti-
mates for 1892 over che estimates for 1891 is
under the following heads: Pensions. 80. 67s.-
900 increase; naval establishment, Ss.2l7. 700
increase; executive establishment. S2.5l7. zoo
increase; Indian service. II .0i2. 500 increase;
public works. S7gi. 1000 increase; military estab-
Eshment. c15S.0J0 increase: making a total of
S5O.O0j. 900. The balance of the increase is dine
to the estimated expenditure for redemption of
national bank notes and for bounty on the pro-
dlctiou of sugar less a decrease of - 500 con
in the estimate for interest on the public debt
and further decrease of about 80 900 GOA
under the respective heads of permanent
annual appropriations and miscellaneous -
The Secretary saws: In estimating the rev.
enue for the next fiscal year the loss from arti-
cles transferred to the free list is placed at tfty
million. bus The increasing demands of the
people must swell the volume OF imuorts il,
other commodities. and the enforcement of the
customs laws under tle operations of the adj
mi2;s:ratiyr act III June 10. 1850. BY the preyen
. alri.fI
ton OF duties. will materially increase the
revenue. II II estimated that an additional col
lection of not less than eighteen million will be
obtained under these conditions. Upon this
ba Is the net loss Of revenue for the year is put
down ~ tEirty-twO million dollars.
PENSIONS.
The estimate of 5I35. 263. OS5. made bv the In
terror Department for the year 1852. is based
upon the fact that over 2J0. 900 of the claimants
for pensions under old laws have availed them
selves Of the right to present their claims
under the act of June q. 1890 Claims pre-
sented under the new law viii draw a less
monthly rate and carry arrearages for only n
short time and for small amounts while under
thc oid EtwS many OF them carry very large
arrcaraScs and many of which will have been
PAM during the fiscal year 1891. The transfer
of cLIims from the old 20 the new law will there
fore very hrgely reduce the average annual
value of pensions and reduction in the amount
OF arreardSes alone Is estimated at 80 600 600
for the year 1892. For these reasons il il e.ti-
mated that the amount above named for 1892
VIII 5e sufficient TO meet the aggregate re-
CulrementS for that wear"
The Secretary advises that the pension
agencies. instead of paving all on the same day
quarterly. shall be divided into three groups
each group paying at different time. SO that
the drain ON the treasury shall not be SO
simultaneous.
SINKING FUND
Under the requirements of the act of Feb
ruary %, 1862 Revised Statutes. sections 36SS.
36s9). establishing sinking fund for the
gradual extinguishment of the public debt.
there have been purchased during the months
Of July. August. September and October of the
current fiscal yea- Ss21.S59. 100 OF the funded
loan Of 1891 and SIC. 13i. 600 of the funded loan
of 1907, at cost to the fund for premium and
anticipated irte- = of Slips. 1876 on the
former and S3 81 50.93 OF the latter loan
There have also been added to the fund by the
redemption of fractional currency. treasury
notes. and United States bonds which had
ceased TO bear interest the sum of Ss.764
making a total of 549O72. 75i 81 applied to the
fnnd as against an estimated requirement for
the year of St9.0U.210.
SURPLUS REVENUE
The surplus revenue was largely increased
last summer by the pending changes i'll tariff
legislation. And the available balance in the
treasury was also greatly augmented by the act
of July IA. 1880. which transferred over s54.-
UoO.UO from the bank-Eott redemption fund TO
the available cash. This sudden and abnormal
Increase was the cause of much concern and
some embarrassment 20 the department
TO prevent an undue accumulation of money
IN the treasury. and consequent commercial
strIn-ency. ONLY two methods were open To the
Secretary. namely to deposit the public riouevin
national banks or to continue the purchase of
United States bonds on such terms a. they
could be obtained. For reasons heretofore
stated the former method was deemed unwise
and ineXpeciient and the policy Of bond pur-
th.t~e~ WAS continued. On account of the rap
Idly diminishing supply OF United States bonds
on the nItrktt and of the fact that the sudden
aLd great increase in the surplus compelled the
lmH.etiIste purchase of large quantities il be-
came very diii@ult to- obtain them in sufticieu.
amOGntS and 1t fair prices
lhe total amount of and AZ per cent bonds
purchased and redeemed since March l. 1879
l. 81. 80 40. and the amount expended there
Tor l. >2lb.62O. 1il-12. The reduction III the an
nGal interest charge BIZ reason of these transac-
tons Is s.961.o19.I5. and the total saving of
interest Is S5l.J16. 1O6.0l.
OBJECTIONS TO LARGE SURPLUS.
The Secretary continues: There are many
grave objections TO the accumulation of a large
surplus in the treasury, andSespecially to the
power which the control of such surplus gives
10 the Secretary i am sure those objections
appeal To no one with much force as to the
hetd OF the department. upon whom rests the
dlincult and delicate responsibility of its adj
ninisiration.
In my judgment, the gravest defect in our
Present financial system Ii its lack of elasticity
Inc national banking system supplied tLis de-
Feet 10 some extent by the authority which the
banks have TO increase their circulation in
times OF strlngency. and TO reduce when money
becomes redundant but. BY reason of the high
price of bonds. this authority has ceased 10 be
Of much practical salue.
The demand for money in this country is no
irregular that an amount Of circulation which
Will De ample during ten months of the wear
Will frequently prove - deficient during the
other Two months a. 10 canse stringency and
commercial disaster. Such stringencv NAV
occur without any speculative fnAnipulations
vi money, though un.OTtHnA,sly IL !. often in
tensifed-by such nisniy1iata,B<. The crops Of
the country have rs@cLsd pfDpDr,lGns - i'm
mense that their faDssfasas - ts.arkst. in Au-
gust and September, ann 1&sly Is<-s a DANGER
Gus absorption ~ IsDSlsy. Tl-s LAX 81 n suffi-
cient supply u faAs. saas lAtfsA~s,l demand
curing thD>s tsIDAsAss ts&y sn,alI heavy losses
upon the asric14tSfS! ssu 40 upon other
Dusiness Interests. Is-sa.zh tflApclaI stringency
may occur a, zEY t2t1s, at from many causes
yet nearly al - IA zfsst ssfnmsrcial crises in
our hlstDry haze t>sNssfss1 during the months
named and 1z4Ss< s,Ss.As fyfosision be made to
meet slisb s'l - xss.-fS az the future like dis
asters MAJ - s,ssEy-s-siY expected.
hrsSlt< 4sA FsE zDsEY MARKET.
am ss~ss 1~ss a. theory obtains in the
minis " E-s1g ts1T!s that II there we're no
surplus IN IL Treasury a sufficient amount of
LIZ IA. .st.st.