Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-12-20
NATIONAL FINANCES
Questions Discussed in Mr.. Carhsle's
Annual Report.
TAXES TO COVER DEFICIENCIES
An Issue of Short Term Low Rate
Bonds Proposed.
THE PENDING TARIFF BILL

The annual report OF the Secretary OF the
Treasury on the state of the national
finances was submitted to the Congress to-
day. 1t comprises a pamphlet Of sixty-two
printed pages and gives an elaborate review
OF the operations of the Treasury Depart
nent during the past fiscal year. The rev.
enues OF the government from all sources
for the fiscal year ended June 30 last were
$46l. .I16.562, and the total expenditures $45Y-
S'4,sS1, leaving a surplus OF S2,34l, ,675.
Compared with the fiscal year 1872 there
was an increase of $35. 5.s4S.3O1 of receipts,
and an increase Of 3s.454. 623 in the ordinary
expenditures. For the fiscal year 1884 the
revenues estimated on the basis Of existing
laws will be s4SO. l21, 1856. and the total esti-
mated expenditures s45S. III 1855. or a defieit
OF S2s,OOO,OOO. On the basis Of existing laws
the revenues for the fiscal year 1895 are
estimated at S45+, +,427.74s. The estimates Of
appropriations required for the same period,
as submitted by the various executive ce-
partments and offices. exclusive Of sinking
fund, aggregate SiiS, SOC, 80, or an estimated
surplus of s6.l2O.:E5s.
Condition of the Treasury.
Secretary Carlisle, discussing on the "con-
ditton OF the treasury and the best means
for its rehabilitation. says:
During the first five months OF the present
fiscal year the expenditures OF the govern
ment have exceeded its receipts to the
amount of S299lSU95. There has been not
only decrease Of receipts. but also an in
crease Of expenditures. during this period as
compared with the corresponding five
months Of the last fiscal year. The rev.
enues from customs have fallen off s23, 5S9.- =
SD; from internal taxes, 81. SD, ,667, and from
miscellaneous receipts, xS24, ,l52
The result Of these changes Is that on the
first day of December, 1888, the actual net
balance In the treasury, after deducting .he
bank note per cent redemption fund out
standing drafts and checks disbursing OFF,
GERS balances, agency accounts and the
gold reserve, was only s11.O3s.44S, and of
the total amount held sl2.347. SIT was In SUBJ
sldlary silver and minor coins.
II may be safely assumed that the worst
effects of the recent financial disturbances
and consequent business depression, have
Seen realized. and that the conditions win
be much more favorable hereafter for the
collection OF an adequate revenue for the
support OF the government; but 1t can
scarcely be expected that the receipts dur
ing the remainder of the fiscal year will ex-
ceed the expenditures for the same time to
such an extent as to prevent a very consid-
cradle deficiency. 1 have. therefore esti-
mated probable deficiency of s2S.OOO.OUO at
the close OF the year, and II Congress con-
ours In this view of the situation, 1t will be
incumbent upon 1t to make some provision
Tor raising that amount az soon as prac-
ticable. by taxation or otherwise.
Issue of Bonds.
On account of the difficulty OF securing
such sum within the time It will be re-
quired by the imposition and collection OF
additional taxes, I recommend that the
third section of the act to provide for the re-
sumption of specie payments, approved jan
uary IA. 1875. which confers authority upon
the Secretary of the Trea snrv to yssua apd
sell certain descriptions of United States
bonds, be so amended to authorize him to
issue and sell, at not less than par in coin,
bonds to an amount not exceeding two un-
dred million dollars, bearing a lower rate OF
interest and having 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 to
supply any deficiencies in the public revenues
that may occur during the fiscal years 1884
and 1880. The section referred to provides
that:
To enable the Secretary of the Treasury to
prepare and provide for the redemption In
this act authorized or required, he Is author
lied to use any surplus revenues from time
to time in the treasury not otherwise appro-
prfated, and to issue, sell and dispose of, at
not less than par in coin, either of the de-
scr1ptions Of bonds of the United States de-
scribed in the act of Congress approved
July IA, 1870. entitled An act to authorize
the refunding of the national debt
Inc DOnQS authorized Dy the act OF July
IA, 1870, are described follows:
l. Bonds not exceeding in the aggregate
two hundred million dollars, redeemable in
coin after ten years, and bearing interest
at the rate OF per cent per annum.
2 Bonds not exceeding Nhree hundred mil
lion dollars, payable after fifteen years, and
bearing interest at the rate of IL per cent
per annum.
lion dollars. payable after thirty years, and
bearing interest at the rate Of per cent
per annum-
Three Per Cent.
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 issue and
sale of any Of these 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 1t would
cipal. and on the third class it would ex-
ceed the principal by 20 per cent If any
one of these methods Of raising money were
now presented as an original measure for
consideration in Congress. / am satisfied
It would not receive the approval of that
body or of the people Whatever may have
been their merits nearly a quarter of a
century ago. when the credit of the govern
ment was to a certain extent impaired by
the existence OF a large interest bearing
public debt and the general use of a depre-
cfated paper currency. not then redeemable
In any kind of coin, our financial standing
u now so high that our public obligations
bearing any of the rates of interest author
lied by the law referred to. would have to
be sold at a premium so great as to prevent
large 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 and i am confident
that bond. bearing interest at the rate of
q per cent. payable quarterly, and redeem
able at the option of the government after
nve years, could be readily sold at par in
our own country.
II the authority now existing should be so