The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1892-12-17
THE TREASURY.
Secretary Fosters Statement of the
Country's Financial Condition.
The Available Cash balance Reaches the
sum of Nearly sI21, ,OOO-E Estimates
OF Receipts and Expenditures for
tho Current Fiscal Year.

WASHINGTON, Dec. s--Secretary Foster, OF
the treasury department. in his annual report
as TO the financial operation Of the government
estimates the revenue for the present fiscal
year ending June 30 1929, as follows;
From customs a19s,OOO,O0o From internal
revenue SlG5 100000. From miscellaneous sources
s2oOOO0Oo From postal service $50 ,3504A
Total estimated revenues Si6S 1896, ,95D44
The expenditures for the same period are es
timatcd as follows: For the civil establishment
Sl00,0OOOJ0. For the military establishment
soOOO,0OO For The naval establishment s3l4
0OOOOO For the Indian service 100000 For
pensions 900 For interest on the public
debt S2O,OOOOOO For postal service $50 226 $50 a.
Total estimated expenditures S46l, 1896, $50 A.
Leaving an estimated surplus for the year OF
100000
The following is submitted as the probable
condition of the treasury at the close of the
present fiscal year, June 30, 1885, Cash n the
treasury July /, 1892 including gold reserve,
S126, 97S7I03; surplus for year as above So OO0-
0O0 Deposits during the year for redemption
OF national bank notes S3,j00,00O Total amount
| available &13l, l0?,3770S Redemption of national
bank notes during the year S9,5JOO00 Redemp-
ton of bonds, interest notes and fractional cur
rency during the year 100000 Total $40, 2000 600
Cash balance available June 30 1893 $500, ,3T.
1t Is estimated that the revenues of the gov
ernment for the fiscal year 1894 will be on the
basis named below
From customs 1910, 100000 From internalre
enue III, 100000. From miscellaneous sources
S20OOO,OOO From postal services aS5, 12l ,36o.38
Total es timated revenues S49O, 12 ,3G5. 3S
No account is made in the foregoing of the
quirements of the sinking fund for 1894, amount
ing to s4S 600, beyond the redemption of past
due bonds, fractional currency and national
bank notes estimated at 100000. The esti-
mated receipts are based upon conditions pre-
vailing prior to the late election "Public opin-
ion having decreed change OF policy" says
Secretary Foster, particularly in the tariff
laws, the altered conditions resulting thcrefrom
render 1t impossible at the present time to esti-
mate the annual income with any marked de-
gree of accuracy and 1t is impossible to predict
the effect that such proposed radical changes
would have upon the future revenues of the
government"
"Under all of the circumstances it would be
inappropriate in me to undertake to make an
estimate other than as already stated, but IL is
not out of place to remark that the business
community having full knowledge OF proposed
tariff reductions, the inevitable result will be q
falling off in importations and corresponding
decrease in the revenues. The extent of this
decrease no one will be able to measure until
business shall again adjust itself TO new condi
tions."
Secretary Foster recommends the uncondi-
tional repeal Of the sinking fund laws as 'it is
hardly probable that more than about Il, 200, 600
can be credited to the fund during the present
fiscal year as against legal requirement ex-
ceeding S4s00O,0O0 and further applications to
the fund during succeeding years must neces
sarily be limited TO such small sums as may
from time to time be paid for past due bonds
fractional currency and national bank notes re-
deemed under the act of July H. $780,"
One of the embarrassments to the treasury,
IN the opinion OF the secretary, is the inability
with the limited amount of cash on hand above
the one hundred million reserve, to keep up a
sufficient gold supply. when the demand comes
for the expectation of gold" he says, 1.-The
treasury is called upon to furnish it. II this de-
mand should prove to be as large the coming
year as ii has been for the past two years gold
In the treasury would be diminished to or below
the reserve line.
"The status Of this reserve and It's amount
have recently been subjects Of discussion. In
the bank act of 1882 congress gave expression
70 its belief that 100, 100000 in gold was suit
lble reserve; by providing that whenever the
amount OF gold in the treasury should fall below
that sum the issue of gold certificates should
cease. In 1885 the then secretary of the treas.
ury adopted the practice of reporting 300 900 001
Of the gold in the treasury as Il reserve tor the
redemption of United States notes, and recently
the majority OF the judiciary committee Of The
present house of representatives expressed the
opinion that under existing law the mainteI.
ance of this reserve is obligatory.
But If Sl000OO.0O0 in gold was a suitable or
necessary reserve in 1882 and in 1885, it would
seem clear that greater reserve is necessary
now
at should be remembered that since 1882 we
have added to our silver circulation the sum of
50,Ol6 1872 in standard silver dollars coined
under the old silver act of 1873 These dollars
are nearly all outstanding and largely repre-
sented by silver certificates. We have also in
creased the legal tender paper circulation by is
suing about Sl2J 100000 of the treasury notes au-
thorized by the act Of July IA, 1890, and to this
we are adding about four millions each month
in payment OF silver bullion purchased
"It is true that silver certificates arc not re-
deemabe in gold, and that the treasury notes
Of 1890 are redeemable in coin; but since it has
been declared to be the established policy OF
the United States to maintain the two metals,
silver and gold, on parity with each other, it
is obvious that this large addition to our circu-
lation has increased the possible charge upon
our gold reserve,
''lu view, therefore, of these increased and in
creasing liabilities, the reserve in the treasury
for the redemption of the government obliga-
tons should, in my opinion, be increased to the
extent of at least 20 per cent. of the amount OF
treasury notes issued and to be issued under
the act of July II, 1890,
"As will be seen by the estimates submitted,
the receipts of the current and next fiscal year
are not likely, If present conditions continue to
fall below expenditures. Yet In view OF the
fact that the surplus for this year will be small
falling off in receipts for causes mentioned, 1
think the revenues should be so Increased us to
enable the treasury department to maintain
gold reserve of not less than j125 900 and to
maintain q comfortable working balance in the
treasury cash"
The net profit on the coinage of silver during
the fourteen years ended June 30, 1892, including
the balances in the coinage mints on July l.
1873, has aggregated S72,736,065
The net loss of gold by exports during the
fiscal year was only S142,654 against a loss in
the preceding fiscal year Of S619i6,7GS Secre-
tary Foster simply touches upon the monetary
conference now in session in Brussels, saving:
"Whatever may be the outcome of the confer
ence it is safe TO say that clearer idea will be
had OF the vi.ws and purposes of the countries
represented"
Considerable space is devoted by Secretary
Foster TO discussion of the customs admins
tration act, which as whole he thinks has af-
forded much relief TO both importers and GUS
toms officers 1t is however, defective in some
particulars, to remedy which he recommends:
First-The abolition of all fees, commissions
emoluments, and perquisites now authorized OF
allowed to collectors, or surveyors of customs
and the compensation Of these officers by fixed
salaries
Second-The consolidation OF the customs dis
tricts demanded alike for reasons of economy
and the changed condition of commerce and
transportation.
Third-The revision and codihcation of the
customs and navigation laws which especially
urge with such modification and new provisions
as practice and experience have demonstrated
are required for the efficiency of the service
A mass OF figures tell the story OF our trade
relations with the South American countries
and with European countries with which we
have reciprocity treaties. Secretary Foster re.
erArHg iHav, anIy