The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1891-05-06
WEDNESDAY. MAY 6. 1891.
TWELVE PAGES.
The National Treasury Bankrupt.

The NatiOnal treasury bankrupt
A large surplus in the national treasury
Is bad thing for the country. So is def
felt. The one is the result of excessive
taxation, and involves the withdrawal of
large volume of currency from the chan
nels of trade, crippling business and chok-
ing the currents Of commerce. The other
Is the result of reckless, and frequently
corrupt, expenditure Of the public money,
which is the logical, and, indeed, the inev-
itable, consequence of the accumulation
of a surplus The existence OF a surplus
is an invitation to jobbery of every kind
and to profuse and unnecessary public ex-
penditures 1t was to be expected that
the surplus left in the national treasury by
the Cleveland administration would
soon disappear, and be succeeded by a
deficit, because the administration which
came into power in 1889 was pledged to a
continuance of the policy of excessive tax
alton which had produced this surplus
and to extravagant expenditures of the
national revenue.
Thesurplus was accumulated under Pres
ident CLEVELAND because congress refused
20 listen to his admonitions and reduce
taxation to the necessities of the govern
ment economically administered. The
democratic house passed bills providing
for liberal reductions in taxation. as
recommended by Mr.. CLEVELAND, but the
republican senate rejected these measures,
and as the administration practiced strict
economy in all departments the surplus
continued 10 grow until Mr.. HARRIsoN be-
came president. Then il stopped grow
ing. Presently the Tom Reed congress be-
gan a raid upon it. "GoD help the sur
plus" was the watchword of that body,
and before il ended its reckless career ap-
preparations considerably exceeding q
billion of dollars had been made, while at
the same time the taxes of the people had
been increased and a very important source
pf public revenue had been abandoned.
Today, thanks to the administra-
tion of President HARRISON and
the billion dollar congress of
Ton REED, the national treasury is
face TO face with an alarming deficit Two
years ago the surplus amounted to nearly
ffty-eight millions. after paying out forty
eight millions for the redemption of
bonds. Besides the surplus, the treasury
contained about fifty-fve millions OF dol
lars which was held as a trust fund for the
redemption OF national bank notes. This
money had been deposited for that pur-
pose, but was, by order of the billion dol
lar congress, turned into the general fund.
IL was quickly swallowed up in the msel-
strom of republican extravaganza, and
thus the national debt was practically in-
creased ffty-fve millions.
The surplus left by President CLEVELAND,
and the national bank note trust fund,
amounting in alto one hundred and thir-
teen millions, have gone where the wood
bine twneth." The treasury is today in a
bankrupt condition. The government Of
the United States is unable to meet its OBJ
legations. On the LIST OF September next
all the A per cent bonds issued under the
acts of July II. 1870, and January, 1871,
mature and the government is under con-
tract 20 redeem them at that time. The
last official statement OF the debt OF the
United States issued from the treasury
department shows that at the end Of
March the amount of these ~
per cent bonds outstanding was
nearly S54,00OO0O. The secretary OF
the treasury would redeem all these bonds
when they fall due if he could, but he
cant. and in the circular issued several
days ago, and duly published, he an
nounced that redemption OF 4ls would be
discontinued "for the present" This ac-
ton was taken. said the secretary, with n
view to reserving the residue of the A! per
cent. loan for adjustment within the next
fiscal year, which begins on the LIST day
of July next" This is very bland and
child.like way OF putting the thing, but it
will hardly deceive the country. The
country understands that the redemption
of the 4ls is suspended because the treas
ury is in condition of collapse, and that
the treasury is in this condition because
of the recklessness and proAigacy of the
republican party. With the beginning of
the next fiscal year will come very heavy
demands upon the treasury to meet the
appropriations made by the billion dollar
congress. II will be impossible to meet
these demands from the depleted revenues
of the treasury, and it seems inevitable
that between now and June 30, 1892, when
the next fiscal year will expire, there will
be an addition to the public debt OF from
Sl5O,OO0OOO to s2OO.OOO.O00-a part OF the
price which the country will have to pay
for the luxury OF the blocks-of-fve admin
istration and Tom REEDS jobbing billion
dollar congress.