Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1893-12-28
CARLISLE'S REPORT.
of the Report Of the
Secretary of the Treasury

Laid BEFORE Coneress-A Deficit of $685.
100000 in Sight at the Close of
the Present Fiscal Year
Recommendations.
WASHINGTON. Dec. eo-The annual report
treasury was submitted to congress, OF which
the following is an abstract:
THE REVENUES.
The secretary estimates the revenues of the
government for the fiscal year, which will end
on the 30th of next June, at $3.50, l21 900, and
that the expenditures for the same period will
amount to S45S 121 ,00C. leaving deficit of S2S.
COO 600 on the year. He mentions that there
are Pacific railroad bonds, known as cur
rency sixes,'' issued in aid of the Pacific
railroads, falling due within the year
1884, to the amount OF s2362.ooO which
must be paid at maturity, and recommends
that congress stake action at this session to
provide for them. He suggests as means OF
enabling the government to promptly meet the
emergency and provide a larger reserve fund
several courses of action. One is the issue OF
8 per cent. five-year bonds. in small amounts.
to be disposed OF through the sub-treasuries and
post Offices to our own people. Another, the
issue of S500o0,000 in one-year B per
cent bonds at par. Until the effect Of
the repeal of the Sherman silver-purchase
law is more fully developed, he does not
consider it advisable to recommend further
special legislation on that subject. He favors
legislation to authorize q more extended use OF
silver certificates. He refers to the opinion of
his predecessor and of the late attorney-gen-
eral that the gain or seigniorage resulting from
the coinage of the silver bullion it pro-
crosses constitutes part of Gthe general
assets OF the treasury, and states that he has
ordered the minis ut New Or
leans and San Francisco to be kept in
readiness to commence the coinage OF stand
and silver dollars at any time when require d.
POSSIBLE ISSUE OF BONDS
In speaking of the possible issue OF bonds
under the act Of July IA, 1870, the secre
tary says: I'm the present condition
of the countrys credit nothing less than
the existence of great and pressing
financial emergency would, in my opinion JUS
tify the issue and sale of any of those classes
of bonds. On the first class 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 twothirds OF the
principal, and the third class it would ex
coed the principal by 90 per cent. II any one
of these methods of raising money were pre-
sented as an original measure for consideration
in congress. 1 am satisfied it would not receive
the approval of that body or of the people,
IF the authority now existing should be so
modified to empower the secretary Of the
treasury to issue the bonds in denominations of
so5 and its multiples, they could be readily dis
posed of through the subtreasurieS and post
offices without the agency intervention OF
banks or other financial institutions and with
out the payment of commissions Such bonds
would afford to the people at large oppor-
tunity to convert their surplus earnings into
form of security which while it would be per-
fectly safe, would not only increase in value by
reason of accommodating interest but be at all
times available as the means Of procuring
money when needed; and the experience of
this and other countries justifes the
confident belief that such plan
would be popular and successful Congress
alone has the power to adopt such measures as
will relieve the present situation and enable
the treasury to continue the punctual payment
of all legitimate demands upon it, and
specially bu: earnestly urge that immediate
attention be given to the subject. The neces-
sity for the extension of the power of the Sec
rotary to procure and maintain a large reserve
for the redemption of United States currency
must. I think, be evident to everyone who
has given serious thought to the subject"
CURRENCY REDEMPTION.
Secretary Carlisle says that at the date OF
the redemption Of specie payments, January 1.
1879 there sS46 6Sl. 0l6 of the old legal ten
der notes to be redeemed, and the secretary of
the treasury considered that 10000, coo would
constitute sufficient basis for the raainte-
nance OF that amount of currency at par. But
since July IA, 1890, additional treasury
notes have been issued to the amount
of sl55 $50 $40, OF which there are
outstanding s153,31s,224, making the
government obligations in currency $780,
999. 240 In addition, he says that there have
been coined under authority of the law s419,-
49,, $50 in legal tender silver upon which GER
tificates have been issued to the amount OF
1884 las, 504 With reference to this matter. the
secretary says:
Under these circumstances it is, in my
opinion, necessary not only that he should be
clothed with full authority to procure and
maintain an ample reserve in coin, but that the
purposes for which such reserve is to be held
and used should be made as compre-
hensive as the duty imposed upon him
by the law. The existence of such
authority in constantly available form would
of itself inspire such confidence in the security
and stability OF our currency that it's actual
exercise might never become necessary. but the
futility of declaring a specific policy and with
holding the means which may become neces-
sary for it's execution, is too apparent to
require comment.
THE TREASURY RESERVE.
After detailing the recent efforts OF the treas
ury department to maintain the 10o,0Oo. 600 re-
serve, he continues
so long the government continues the
unwise policy of keeping it's own notes out
standing to circulate as currency, and under
takes to provide for their redemption in coin
presentation, it will be, in my opinion, es-
Sential for the secretary Of the treasury to
possess the means, or to have the clear and
undoubted authority to secure the means
which may from time to time become neces-
sary to enable him to meet such emergencies
as the one which has recently occurred in our
financial affairs
The secretary says that the amount of money
in this country outside of the treasury on De-
cember l. 1898 was S112, 414, 947 greater than the
amount outstanding November 1, 1892 and
insists that it is greater than is required for
the transaction of the business of the people
at this time. This is conclusiveiy shown, he
says, by the fact that the money has accumu-
lated and it is still accommodating, in the finan-
cial centers to such an extent as to constitute
q serious embarrassment to the banks in which
1t is deposited. The secretary says that the
money does not create business, but business
creates demand for money and until there is
such a revival OF industry and trade to
quire the of the circulating medium now
outstanding, it would be hazardous to arbitra-
rily increase it's volume by law or to make
material changes in its character by disturb
ing in any manner the relations which its diff
ferent forms now bear to each other.
DIFFICULTY DISCUSSED.
Secretary Carlisle says that one of the princi-
pal difficulties encountered by the treasury de-
partment results from the indisposition Of the
public to retain standard silver dollars and sill
yer certificates in circulation. The secretary
does not know why this should be, anduadds:
with the policy of maintaining equality in
the exchangeable value of all currency
firmly established. and the further accumuia-
ton of silver bullion arrested. there is sub
stant!a1 reason why the silver certificate
should not be favorably received and as