St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-01-24
In Response to the Call for
Information on National
Finances.
Intrieacies of the, Treasury
System Explained by the
Experts.
PuZZling Queries Propounded
by Ways and Means Com
mitteemen.

| financial condition of the government.
| Several treasury experts were also pres
| ent. Tie subject of the committees
| inquiry is to secure official information
| as to the revenues and expenditures of
| the government as preliminary TO any
| possible tariff legislation. Secretary
| Foster is out of the city recuperating,
and Mr.. Spaulding took his place.
Representative Bourke said that, hav
ing heard the exhaustive discussion on
the subject of the governments finan-
| cial condition in the house. he knew less
| then about it then he ever did. and sug-
| geSted that Mr.. SpauIding give a state
| ment in his own way.
Mr.. Spaulding said he would make
comparison between the current fiscal
year and the fiscal year ended June so.
1890, the year before the present tariff
act went into effect. He would give the
actual receipts up to date, and estimate
those for the balance of the year.
He said the customs receipts
for the six months. Dec 81, 1889,
were S19,629,000; current six months
SS5, 722, 900; first twenty days in 1890,
Sl3,61S,0OO; first twenty days of this
month Sl1, 995, 900, making customs total
to date S97, ,0G0, against S123, 242, 900
tWOyears ago. The total receipts from
customs for the fiscal year 1890 was $685.
5000, against an estimated total for
the year of s1S5, 900, 900.
The internal revenue receipts for the
six months ended Dec. 81, 1899. were
SOS, 52l 90 for the current six months,
S77,075, 900; first twenty days of 1890,
So, 255, 900; first twenty days of
1892, S7,509.0O0; total internal reve-
hue receipts for the fiscal year
1890 S142, 100000, compared with a total
(estimated) for 1892 Of S152, 200, 900. The
miscellaneous receipts for the six
months ended Dec. 81, 1889, were S14,-
$4,000; for the current six months,
S11,364, 900; total for fiscal year of 1890,
$50, 805, 900, compared with a total (esti-
mated) for the current fiscal year of
s25,000,000 The total receipts from all
these sources for the first six months of
the current fiscal year were STA, Isl 900,
against 1892, S97 900 for the first six
months two years ago; for the first
twenty days OF the present month, $780,
S37. 900, against S2l, 756. 900 two years ago;
total revenue (eStimated) for the cur
rent fiscal year, $780,, 900, 900, against
S403, 079.000 for the fiscal year 1890.
The actual receipts of STA, Isl, 900 for
the first six months Of the current fiscal
year were about 81, 600, 900 more than the
expenditures for the corresponding six
months. the expenditures being $751;
074,000. The expenditures (estimated) }
for the current fiscal year were $685. I
100000 or about 100000 less than the
estimated receipts of 1862 600, 900.
In answer to Mr.. Springer, MIR. /
Spaulding stated that the postal re-
ceipts and expenditures were not in 4
Guided in his statement, but that the def /
cit i'll the postal department had been 4
included III the expenditures, so that
the surplus shown was not affected.
Mr. oSlYad if no 81,
fund requirements were included. Mr..
Spaulding replied that his figures did
not include the sinking fund. MIR.
Springer inquired if that were not a
charge on the treasury. Mr.. Spaulding
said that 1t would be necessary to take
S10,000.0O0 out of the apparent
Surplus of S24,O00,000 to provide
for sinking fund requirements, adding
that in addition to the $4,000, 900
apparent surplus, there was leash in
the treasury" amounting to S139, 726. 600,
making total of 1888, 900. He in
Guided in leash i'll the treasury" the
gold reserves or S100,0O0,0OO held for re-
demptlOn of greenbackS amounting to
s346, O0O, 900.
Mr.. Bryan, of Nebraska, asked if this
gol dreserye was available for govern
ment expenses. Mr.. Spaulding replied
that he understood Secretary Foster so
considered it; and in reply to further
inquiries from Democratic members
who desired to know if congress had not
recognized the gold reserves as set aside
for special purpose, he said that there
was no statute setting it aside; there
might be resolution setting it aside in
ferentially.
The discussion of the gold reserve
soon resulted in cross fire between the
Democratic and Republican members
of the committee. the former contend
ing that they were a fund for a special
purpose, and not available for ordinary
purposes, while the latter asserted the
contrary, Mr.. McKenna declaring that
they had always been regarded as part
of ordinary resources until Secretary
Manning set them aside by a system Of
treasury bookkeeping.
Mr.. Turner, of Georgia, asked MIR.
Spauldlng: Suppose the treasury were
to get into pinch, could the gold re-
serve be uSed?"
Mr.. Spaulding- Yes, sir; I think SO.
am not so entirely in charge of the
treasury department, however, that 1
would not consult with Secretary Fos-
ter, who is at Fortress Monroe, as to
what l should do. | should counsel
with him before taking action.
Mr.. Turner-NOw, some 100000 of
bonds were extended. Don't you con-
slider them current liabilities?
Mr.. Spaulding-No, sir; they are ex-
tended at the option of the government,
but not Of the holders. Mr.. McClennan,
chief OF the warrant division of the
treasury department., In reply to Mr..
Turner, said this extension was not
under authority OF law, but was treas
ury arrangement between the govern
ment and the creditors.
Mr.. Turner said that aside from the
gold reserves he understood that the
figures of the treasury department
showed surplus left in the treasury of
S39, 900, 900, that included the fractional
silver and an extended bonded debt of
over SIS, DOC, 600, principally the two per
cents. Taking out this fractional sill
yer and extended debt, there would not
be any surplus, would THEREOF he sug-
gested to Mr.. McCIennan.
That gentlemen replied that there
would be little, but not much, and to
MIR. Bryan he said that 81 ,000, 900 on ac-
count of sinking fund was still left out
of consideration.
Mr.. Cochran called attention to the
fact that with surplus o. only $780,
600 for the first SIX months of the year,
the treasury department estimated a
surplus for the next fiscal year of ST.
100000. He did not understand how
this could be, and asked why the esti-
mates for the second half of the year
showed such large increase over the
first half.
Mr. McKeRna. of California, called
attention to the fact that customs re-
ceipts were always greater in the second
half of the year. Mr.. Macedonian said
the treasury estimates of receipts were
s14, 000, 900 greater for the six months
from Jan. L, 1892, than for the six
months preceding. The expenditures
it was estimated would be s., O0O, 900
less. The river and harbor expendi-
lures were not included.
In reply to Mr.. Springer Mr.. MacClen-
nan said that at the close of the last
month the treasury department had paid
out upwards of 81, 1000, 900 on account of
sugar bounties. The department., how
ever, would not have the direct tax ap-