The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-12-21
SECRETARY cARLlsLe's REPORT.
What He Says of Bond Issues, the Finan
cial Trouble, and other Matters, Inc1ud
ing the Tax on Whisltey.

/ Washington, December 20-The annual
| report of Hon. John G Carlisle, Secretary
| Of the Treasury, was transmitted to
Congress today. The Secretary estimates
| the revenues OF. the government for the
year ending June 80, 1924, at $3.50, 121, 600
and that the expenditures for the same
| period will amount to $45s, 121, 900, leaving
deficit of S2s 900, 600.
He mentions that there are Pacific
railroad bonds, known as currency SKIES,
issued in aid of the Pacific railroads,
falling due within the year, 1894, to the
| amount of S3, 1852, 900, which must be
paid at maturity, and recommends that
Congress take action at this session to
provide for them.
lie suggests, as means of enabling
the government to promptly meet the
emergency and to provide larger reserve
fund, several courses of action. One is
the issue of per cent, five year bonds in
small amounts to be disposed OF through
sub-treasuries and post offices to our own
people. Anoth er is the issue of $50, 000,
COO in one year 3 per cent bonds at par.
Until the effect of the repeal of the
Sherman silver purchase bill is more
fully developed he does not consider it
advisable to recommed further specific
legislation to authorize more extended
use of silver certificates. Hesrefers to the
opinion--of his predecessor and of the late
attorney general that the gain of seig-
norage, resulting from the coinage of sill
yer bullion. as it progresses, constitutes
part of the general assets of the treasury
and states that he hassordered the mints
| at. New Orleans and San Francisco to be
| kept in readiness to commence the coin
| Of or LORI sill of
time when required.
He champions the system of substi-
| tuting ad valoren duties for specific
duties in the collection of customs, urges
| the admission OF raw materials free and
| recommends an increasesof 10 cents per
| gallon in the internal revenue tax ON
distilled spirits; the imposition of adj
ditional internal revenue taxes on cigars
and cigarettes, imposition of new taxes
on playing cards, cosmetics, perfumerieS,
| legacieS and SUGGESTIONS and incomes de-
| rived from investments in stocks and
bonds of corporations and joint stock
/ companies. The Secretary says that, in
his opinion, $50 long as the government
| continues the unwise policy of keeping
| its own notes outstanding to circulate as
| currency, and undertakes to provide for
| the redemption in coin on presentation
itswill be essential for the..secretary of the
| treasury to possess the means, or to have
| clear and undoubted authority to secure
| the means. witch may become necessary
to enable him to meet such emergencies
as the one which has recently occurred
in our financial affairs. While the laws
have imposed on the treasury depart
ment all duties and responsibilities of a
bank..of issue and to certain extent the
functions of a bank of deposit they have
not conferred on the Secretary any part
of the discretionary powers usually
possessed by executive heads of institu-
tions engaged in the conduct of this
character of financial business.
I'm referring to the financial situation
the Secretary says: money does not
create business, but business creates a
| demand for money, and until there is
such revival of industry and trade as
tosrequire the use of the circulating
medium now outstanding, it would be
| hazardous to arbitrarily increase it's
volume by law, or to make material
changes in its character by disturbing
in any manner, the relations which it's
different forms now bear to each other
In the meantime, it will be the duty of
all who have the power to influence the
course of events, or to assist by legisla-
tion or otherwise in the solution of the
grave questions presented by the altered
| condition of our monetary system to
carefully consider that whole subject in
| all its aspects, in order that it may be
permanently disposed of by adoption of
| n simple and comprehensive sys te n
! which will, as far as possible, relic e the
! govern mentss from the onerous obligatlv.,s
now resting upon it, and at the same
| time secure for the use of the people
currency uniform in value and adequate
| in amount
at may be safely assumed that the
worst effects of the recent financial dis
| turbances, and consequent business de-
| preston have been realized, ssand that
| the conditions will be much more favor
| able hereafter for the collection of an
adequate revenue for the support of the
| government; but it can scarcely be ex-
pected that the receipts during the re-
| mainder of the fiscal year will exceed
| the expenditures for the same time to
| such an extent as to prevent very con-
siderable deficiency. I have, therefore,
estimated probable deficiency of $685.
| 600, 900 at the close of the year and, if
! situation, it will be incum bent upon it
to make some provision for raising that
amount as soon as practicable by taxa
| tion or otherwise. On account of the
| difficulty of securing such a sum, within
the time it will be required. by the i'm
| position and collection of additional
taxes, I recommend that the third section
OF spec1e payments, approved January
| IA, 1875, which confers authority upon
the Secretary of the Treasury to issue
and sell certain descriptions of United
| States sbonds, be SO amended as to
authorize him to issue and sell at not
less than par in coin, bonds to an
| amount not exceeding $500, 900, 600, bear
ing 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 sup
| ply any deficiency in the public revenues
that may occur during the fiscal years
| of 1894 and 1885,"
The Secretary is of the opinion that
with proper economy in the public ex-
penditures an increase of $50, 900, 900 in
revenues for the fiscal year 1896 can be
made most conveniently and justly by
increa sing the tax on distilled spirits,
| cigars, cigarettes, cosmetics and per-
fumeries, legacies and SUGGESTIONS and
| incomes for investments in stocks and