The morning call., 1893-03-08
WHICH IS WHICH?
Condition of the Treasury
From Two Sides.
BANKRUPTCY OR A SURPLUS ?
The Democrats Hold TO the Former
and the Republicans to the
Latter View.
Special to THE MORNING CALL,

WASHINGTON, March THE majority
and minority reports of the Committee on
Ways and Means on the investigation of
the condition of the treasury have been
completed and sent to tile printer. Springer.
who prepared the majority report, says that
assuming g the statements made by Secretary
Foster to be correct on the 30th of
June next there will be an estimated
cash balance OF S20.992.377 over and above
the legal gold reserve. This estimated bal
ance is probably too large. The available
balance will be reduced by the payment
of the Choctaw claims, amounting to
S3,000,0O0, also by any unestimated aud ex-
traordinary expenditures, and by any fail
ure of the estimated receipts during the
time indicated.
The majority are of the opinion that at
the close of the present fiscal year there
will be an available cash balance in the
treasury, aside from the gold reserve. of
not over S17.OO0.OOO.
AS to 1894, Springer says the Secretary
estimated the available cash balance at
SAT, 7,S57, ,402, but note at the bottom of the
treaSurer's statement shows that this bal
anee is chargeable with contract liabilities
already appropriated for. amounting to
S40,000,000. 1t is impossible that all this
amount will be called for during that fiscal
year, but this amount is estimated by the
department under the most careful esti-
mates that can now be made. ut is ap-
parent" says the report, 'that az the end
OF the ensuing fiscal year there will be a de-
fciency amounting to from $50 900, GOO to
S40,000.000. In these calculations 30 ac-
count whatever has been taken OF the re-
mi anil nE fhA g,1-5
balance due the sinking fund in 1892 was
1907, ,S25; the requirements for 1898 are
estimated at 1888, 600 and at the end of
the next fiscal year there will be due the
fund little over 100000. 0O0."
In conclusion, the majority cite Secretary
Fosters statement that, in his opinion,
there would be deficit at the end of the
fiscal year 1894. and that the receipts of the
Government should be increased at once by
S50,000,00O to meet the treasury conditions
as put forth in his report. and that the gold
reserve fund should be Increased by S25.-
00O. GOO
The minority report was drafted by Rep
resentative Payne Of New York. and is
signed by all the Republican members of
the committee. 1t says that the conclusions
of the majority from the evidence presented
are wholly unwarranted and misleading.
I'm fact there seems TO be an utter lack Of
evidence to justify any of the criticisms of
the majority upon the statement OF the Sec
retary. which showed that there would be q
surplus in the treasury on the 30th of June,
1891"
The statements of the Secretary, says
the report, are supplemented by the evil
dence of treasury experts evidently of the
most conservative character. The heestimated
receipts are placed at minimum, while the
estimated expenditures are placed at a
maximum.
Speaking of the deduction for the Choc-
taw claim, the minority say the majority
was very swift to charge this So, GO
against the estimated balance for 1898. but
they nowhere deduct it from the estimated
payments for 1894. in which year The Secre-
taTy estlma ted it would BE paid.
The majority is correct in charging the
contract liabilities for 1894 at $40, ,000, 900, as
against an apparent balance of S47, 600, goo,
which is stated in footnote by the Secretary.
II is quite evident. however, that the Secre-
tary does not belive that this $40, ,0GO will
all be paid during 1894, and he had no doubt
but that the condition of the treasury will
be relieved to a considerable extent by re-
ductions in the payments of these contract
accounts.
The majority would also charge In addi-
tion SIG, 6,l15, $50 for rivers and harbors, but
this has already been charged once, and the
sundry civil bill, morever, carries only
S14, l66, 153 for rivers and harborS.
The majority's next attack is made In
averaging deficiencies, which is declared to
be grossly misleading, for the rea son that
there is such great variation that there
can be no average.
The average of miscellaneous appropria-
tions arrived at by the majority is also at
tackled.
On the basis Of the statement of 1.-THE Sec.
retary of the Treasury it would seem that
the amount, either of surplus or deficiency,
in the treasury on June 80, 1894, would be
very small. The revenue from the customs
on the basis of the percentage of increase
for each year ought to be larger than esti-
mated by S11OO0,000. Certainly there is no
justification whatever for the majority's
estimated deficiency at the close of 1894 Of
from $50 00o,O 600 TO S40,00O,00O.
The remarks OF the majority relative to
the sinking fund are commented on MS fol-
lows: This credit could not be made to
that fund from the current revenues of this
year without increasing our taxation suffi-
eiently to retire $50, 0O0 Of bonds per an
mum. Do the majority of the committee
advocate any such scheme? Otherwise why
do they bring the matter into their report,
for they certainly know that prior to July
!, 1891, the requirements of this act have
been anticipated by nearly billion of
dollars"
In conclusion the minority says: 1--WE
cannot escape the conclusion that the ma
jority of the committee have put, whether
Intentionally or not, the worst possible
phase upon the condition of the treasury.
overlooking important points in the state
ment of the Secretary and the experts ex-
amlned in arriving at unwarrantable con-