The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-12-27

3 Ffnances-Chairman wilson's Re-
port.
WASHINGTON. D. c.. Dec 20-The
annual report of Secretary Carlisle was
sent 10 both houses of congress today.
The document is a very thorough and
exhaustive review of the condition of
the governments finances, and contains
various recommendations for the relief
of the treasury. The secretary discusses !
at considerable length the following gen
eral topics. Condition of the Treasury"
Currency Legislation" and Review of
the Revenue Laws" The report is as
follows:
During the first five months OF the pres
ent fiscal year the expenditures Of the gov
eminent have exceeded its receipts to the
amount OF IS. slS. 6,-l.56 There has been not
only a decrease of receipts, but also an
increase Of expenditures during this period
as compared with the corresponding five
months OF the last fiscal year. The rev
euueS from customs have fallen off $685.
S29.7i; from internal taxes s.. S56, 90. and
from miscellaneous receipts $6-4l5Za9 The
expenditures account of the war depart
ment in the execution Of contracts made
during the last nScal year, have increased
$500. 1922. on account OF the navy de-
pdrtmenr for the same reason the increase
has been 81 912 2S93l: on account of In
dians.. S25.U7S.55, and on account of inter
est So 450-25: but there have been reductions
IN some other branches OF the public serv-
Ice 10 the amount of S5,352,206 as compared
with the corresponding period last year
The result of these changes is that on the
1st day OF December, 1888, the actual net
balance IN the treasury, after deducting
the bank note per cent redemption fund.
outstanding drafts and checks. disbursing
officers balances, agency accounts and
the gold reserve. was only 81 OBS. AS. ., and
of the total amount held. Sl2. 347. 517.S6 was in
subsidiary silver and minor coins.
II may be safely assumed that the worst
effects of the recent financial disturbances
and consequent business depression have
been realized. and that the condition will
be much more favorable hereafter for the
collection Of an adequate revenue for the
support or the government. but Il can
scarcely be expected that the receipts dur
ing the remainder of the fiscal year will eS-
coed the expenditures for the same time
70 such an extent as TO prevent, "A very con-
siderable deficiency. ! have, therefore, es-
timated a probable deficiency of 900
at the close of the year. and If congress
cOncUrs in this view Of the situation IL will
be incumbent upon il 10 make some pro-
vision for raising the amount as soon as
practicable.
FavorS Bond Issue.
on account of the difficulty of securing
such sum within the time il would be re-
quired, by the imposition and collection Of
additional taxes. 1 recommend that the
third section Of the act. 10 provide for the
resumption of specie payments, approved
Jan. Il. 1870, which confers authority upon
the secretary of the treasury TO issue and
sell certain descriptions of United States
bonds, be so amended so as TO authorize
him to issue and sell. at not less than par.
in coin bonds. to an amount not exceeding
100000, bearing a lower rate of interest
and having a shorter time to run than
those now provided for, and that he be
permitted to use from time to time such
part of the proceeds as may be necessary
10 supply any deficiency in the public
revenue that may occur during the fiscal
The section referred to provides: THAT
20 enable the secretary OF the treasury to
prepare and provide for redemption in this
act authorized or required, he is author
lied to use any surplus revenues from
time TO time in the treasury not other
wise appropriated. and TO issue sell and
dispose OF at not less than par in coin.
either OF the descriptions of bonds of the
United States, described in the act Of con-
gress approved July L. 1870 entitled, An
act 10 authorize the refunding of the, ma
tionaI debt"
The bonds authorized by the act of July
H. 1870 are described as follows:
81 30 Ponds not exceeding In the aggregate
may prescribe, and OF denominations Of
go or some multiple OF that sum, redeem
able in coin Of the standard value at the
pleasure Of the United States after ten
years from the date OF their issue, and
bearing interest payable semi-annually In
such coin at the rate Of per cent. per
,. Bonds not exceeding in the aggregate
800 coo 900, the same in all respects as those
ure Of the United States after fifteen years
from the date OF their issue and bearing
interest at the rate of AZ per cent. per
3. Bonds not exceeding in the aggregate
81 900 10000, the same in ali respects, but
payable at the pleasure or the united
their issue, and bearing interest at the
rate Of per cent. per annum.
Justified in Emergencies.
In the present condition Of the public
credit nothing less than the existence Of a
great and pressing financial emergency
would, in my opinion. justify the sale Of
any of these classes Of bonds. on the
frst-cIass, the interest would amount, at
the maturity Of the bonds, to one-half
the principal; on the second-class. it
would amount TO more than two-thirds OF
the principal, and on the third-class it
would exceed the principal by 20 per cent.
II any one OF these methods Of raising
money were now presented as an original
measure for consideration I'm congress. I
am satisfied It would not receive the APP
prevail Of that body or Of the people. What
ever may have been their merits nearly a
quarter century ago, when the credit of
the government was, to a certain extent,
impaired by the existence Of large inter-
est-bearing public debt. and the general
then redeemable in any kind Of coin, our
financial standing Is now so high that our
public obligations. bearing any Of the rates
OF interest authorized by the law referred
70, would have 70 be sold at a premium
50 great as to prevent learge classes OF
our people who might otherwise invest
in them, from becoming purchasers The
United States per cent bonds, payable
IN 1907 are now selling at a rate which
yields investors less than per cent. upon
their cost, anu I am confident that bond.
bearing interest at the rate Of 3 per cent,
payable quarterly, and redeemable at the
option Of the government after five years,
could be readily sold at par in our own
country.
II the authority now existing should be
50 modified as to empower the secretary
OF the treasury to issue the bonds in de-
nominations sums OF SO and its null
tplieS they could be readily disposed or
through the sub-treasuries and postoffices
without the agency or intervention OF
banks or other financial institutions. and
without the payment of commissions Such