Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-12-03
Window Tells of the Financial Con.
ditiOn of the Government
EFFECT OF THE NEW TARIFF LAW.
A Sound Measure Adjusted to the Inter-
estS of the Country.
VIEWS UPON THE SURPLUS REVENUES


period were S35S, ,61S, 5S4 81. The Secretary
then continues:
The revenues apd expenditures of the postal
service form no part of the fiscal operations
controlled by the Treasury Department, al
though under a requirement OF Congress they
are included in the figures given. Eliminating
the postal receipts and expenditures, the sur
plus amounts to sos, 344, 499 o. OF this amount
there was used in the redemption of notes and
fractional currency, and purchase of bonds for
the sinking fund the sum of S4S 09i, 564 &C. leav-
ing net surplus for the year of 7,249, 93I 81.
AS compared with the year 1889 the increase
in receipts amounted to sl6030.923 79 and the
increase in expenditures to Sl0.739, ,S7l.
In addition to S4SO95, ,564 66 applied to the
sinking fund curing the fiscal year 1890, the net
surplusdor the year viz, S5 249 93l 81, together
with S5. so received for 4 per cent bonds issued
for interest accrued on refunding certificates
converted during the year, and Sl9,6Ol, ,ST So
taken from the cash balance in the Treasury
at the beginning of the year. making altogether
sc, S57, 7,b7S 80, was used in the redemption and
purchase of the debt
ESTIMATED REVENUES.
The Secretary estimates the revenues for
the nscal wear OF 1891 at S406, 600, 600 and
the expenditures at .S3j4, 600, 900, leaving an
estimated surplus of So, 100000. In his
table ne has estimated his customs receipts
for 1891 at S221, 600 600, as against sos, ,66S,-
5S4 81 for the year covered by his report. In
1892 he estimates that the revenues will not
exceed 1913, 900, 900, and that in round num-
bers S357, 100000 will pay the bills, exclu-
sive of the sinking fund.
In closing the general balance sheet &C.
count, with which he starts his report, the
Secretary says:
In estimating the revenue for the next fiscal
year the loss from articles transferred to the
free list is placed at S50U000O0, but as the in
creasing demands of the people must swell the
volume OF imports in other commodities, and
the enforcement of the customs laws under the
operations of the administrative act of June TO-
1890, by the prevention of undervaluations and
the closer collection of duties, will materially
increase the revenue, 1t is estimated that an
additional collection of not less than SIS 600 900
will be obtained under these conditions. Upon
this basis the net loss of revenue for the year
is put down at So, ,00O 600.
The report then takes up the subject of
pensions. in which he says:
The estimate of slS5. .263, ,CS5 made by the H.
terror Department for the year 1892 is based
upon the fact that over $50 900 of the claimants
for pensions under old laws have avaIled them
selves of the right to present their claims un-
der the act of June -, 1890.
TARIFF LEGISLATION.
In regard to the new tariff the Secretary
says:
The purpose of the tariff act of October last
was TO affect needed reduction of revenue, and
such an adjustment OF duties as would ade-
Quately foster and encourage home industries
while maintaining the standard of American
wages. This end, it is believed has been ac-
compliShed. More articles than ever before
have been placed on the free list rates have
been reduced on many others, and increased
duties have been imposed when deemed neces-
sary to the adequate protection Of our agricul-
tural and manufacturing interests.
The area OF population, the accumulated
wealth and characteristic resources of the
United States render it certain, that for many
years TO come, the home market will be a better
one for our own products than all others COM
bined. This very superiority of the United
States as market is an inducement to foreign
producers everywhere to seek access to and
control Of it. To permit our own producers to
be driven out by foreign competition would be
TO eXpel them from their best and most natur-
al market and compel them to seek inferior
competitive markets elsewhere. Free trade
can never be successfully established or per-
petuated in any country whose home market
Tor It's own products exceeds It's aggregate
markets abroad.
The provisions for the advancement of recip-
Tocal trade with other countries, as contem-
plated by the law, are not hostile TO the princi-
pie OF protection, but are believed to be in
harmony with it. The law has been too short q
time in operation to warrant discussion herein
Of its many details. 1t is believed that the
measure is sound in principle and that its
several classihcations rates. and other provis-
ions nave been adjusted upon comprehensive
view of the vast interests Of the whole country.
SURPLUS REVENUES.
Considerable space is devoted to surplus
revenues, which the report says were largely
increased last summer by pending changes
in tariff legislation.
The available balance in the Treasury, saws
the report, was also greatly augmented by the
act OF July IA, 1890 which transferred over S54,.
UUlUOO from the bank-note redemption fund tC
the available cash. This sudden and abnormal
increase was the cause of much concern and
some embarrassment to the department.
To prevent an undue accumulation of money
in the Treasury. and consequent commercial
stringency only two methods were open to the
Secretary, namely, to deposit the public money
IN national banks, and to continue the purchase
OF United States bonds on such terms as they
could be obtained. The former method was
deemed unwise and ineXpedient, and the policy
of bond purchases was continued. On account
of the erapidly-diminishing supply of the United
States bonds on the market, and of the fact
that the sudden and great increase in the sur
plus compelled the immediate purchase oi
large quantities. it became very difficult to OBJ
tain them in sufficient amounts and at fail
prices.
The report then sums up in detail the pur-
chases of bonds during this period. The
amount of public money set free within "a
davs by these disbursements was abou
S76, 6,000,0 900, making net gain TO the circu
latlon OF the country of about S45, 600, 600.
MORE ELASTICITY NEEDED.
In speaking of the responsibilities of the
surplus, Secretary Window makes this OBJ
servation:
There are many grave objections to the ac
CumulatiOn Of large surplus in the Treasury
and especially to the power which the contro
of such surplus gives to the Secretary. 1 an
sure those objections appeal to no one with 81
much force as to the head of the department
upon whom rests the difficult and delicate re
sponsibillty of its administration.
Judgment. in 0ul
present financial system is its lack of elasticity
The national banking system supplied this de
feet TO some extent by the authority which the
banks have to increase their circulation ir
times of stringency, and to reduce when money
becomes redundant; but by reason of the higf
price of bonds this authority has ceased to bt
Of much practical value.
The Secretary disputes the charge otter
made that the Treasury controls the finances
Of the country, concluding his argument al
follows:
The more recent financial stringency in No
fember, Immediately after the disbursement o.
over 500 0O0 for the purchase and redemp
tion of bonds within the preceding foul
months, furnishes another forcible illustration
that such stringencies are due to other causes
than Treasury operations.
THE SILVER SURPLUS.
Regarding the silver question the Secre
tary says:
The present surplus stock of silver NAV. a
any time. be augmented by imports or dimin
ished by exports, and, as the current produc
of silver from our mines does not differ yer,
widely from the monthly purchases by thi
Government, it is probable that the existin,
surplus will remain for some time an i1nDedi
ment TO the permanent and steady advance o
silver. Even if the present surplus should b
purchased by the Government. importation
from abroad might, at any time, accumulate
an additional stock of silver the manipula
tions of which by spectators would result il