The times. [volume] (Richmond, Va.) 1890-1903, 1893-12-21
MR.. CARLISLE'S REPORT
IMPORTANT RECONREND IgTOYs By
THE sEC'F or THE TREAsURF.
Suggestions ~ to How TO Meet the Finan-
cisl Emergency and TO Pravids For
Largw Reserve Fund.

annual report Of the Secretary Of the
| Treasury ON the state Of the national
finances was submitted 10 Congress to-
day. II comprises a pamphlet Of sixty
! two printed pages. and gives an elaborate
review Of the operations Of the Treasury
| Department. during the past fiscal year.
The revenues Of the government, from
| all sources. for the fiscal year ended
June Soth. last. were Si6l. .76l .jG2. aud the
! total expenditures --g.3l4 ssh leaving Il
| surplus Of Se.3i,615. Compared with the
fiscal year 1892. there was an increase OF
| $50. SIS. .30i of receipts. and an increase of
| $3s. f54 S2S in the ordinary expenditures.
For the fiscal year 1884 the revenues esti-
mated on the basis Of existing laws. viii
be $3.50 i2l, 565. and the total estimated
for the expenditure siJS,l2l 365. or a de-
felt OF $28O0O,JO0 on the basis Of exist
Ing laws the revenues for the fiscal year
1895. are estimated at si54, f27,7iS. The
estimates OF appropriations required for
the same period, as submitted by the vari-
Gus executive departments and officers
exclusive OF sinking fund aggregate
si8. .206 7S9, or an estimated surplus Of
s6,l095S.
Row to Neet The ID fiency
Secretary Carlisle estimates a probable
deficiency Of S2s,00000 nc the close Of the
fiscal year. and says that, II Congress
cOncurs I'm this view Of the situation. IL
will be incumbent upon it TO make some
pre- visions for raising that amount as soon
as practicable, by taxation or otherwise
ION account OF the difficulty Of Sc
curing such a sum within the time 10 viii
be required by the imposition and coli
lecting Of additional taxes / recommend
that the third section Of the act 10 pro-
vide for the resumption of specie pay
ments, approved January a. 1910, which
cOnfers authority upon the Secretary OF
the Treasury TO issue and sell certain
descriptions OF United States bonds, Doe
so amended as 10 authorize him TO issue
and sell, not less than par in coin, bonds
to an amount not exceeding two hundred
million dollars. bearing "A lower rate oi
interest, and having shorter time 10
run than those now provided for ana
that ne be permitted 20 use, from iime
10 time. such part Of the proceeds as
may be necessary 10 supply any dell-
ciencies in the public revenues that may
occur during the fiscal years 1894 and i'J''
Bond Issue ana Reserve fund.
The Secretary presents alternative plans
Tor a bond issue; one providing TOT lle
issue Of bonds OF denomination OF go
and its multiples. which he thinks coulh be
readily disposed Of through the sup-lifas-
urers and post-oiices, without the inter-
vention Of banks or other financial lh-
stitutions. and without tie payment oil
commissions.
The other provides for the disposal on
bonds directly from the Treasury as needs
may require. The rate Of per cent u
suggested in both plans.
MIR. Carlisle ahrms the necessity for
the extension OF the power Of the Secre-
tary 10 procure and maintain larger re-
serve for the redemption OF United
States currency.
He saws: $50 long as the Government
continues the unwise policy OF keeping iis
own notes outstanding 20 circulate as cure
rency, and undertakes 20 provide for their
redemption In coin on presentation, II Will
be, in my opinion, essential for the Secre-
fary of the Treasury 20 possess the means
or 10 have the clear and undOubted author
ity to secure the means which may from
time 10 time become necessary TO enable
him 20 meet such emergencies as the one
which has recently occurred in our
financial affairs Under existing lesis-
lation the Treasury Department exercises
20 a larger extent than all the other
financial institutions Of the country COM
bined the function OF bank OF issue, and
while the credit of the Government IS
so strong that IL may not be necessary 10
maintain at all times the actual coin re-
serve which experience has shown TO Doe
requisite I'm the case of ordinary banking
companies, still. il would be manifesuy
imprudent, TO say the least. not to adopt
such precautionary measures as would
enable the Government in times Of unusual
monetery disturbance TO keep its faith
with the people who hold its notes and
coins. by protecting them against the dis
astrOus effects Of an irredeemable and de-
preciated currency.
Necessi v of the Reserve.
Whatever objections may be urged
against the maintenance Of a large coin
reserve, procured by the sale of interest
bearing bonds IL must be evident that
this course cannot be safely avoided un-
less the government abandons the policy
Of issuing its own notes for circulation
and limits the functions OF the
Treasury Department TO the collec-
ton and disbursement of the public
revenues for purely public purposes.
and to the performance OF such
other administrative duties as may be
appropriate 10 the character Of its or
ganizauon as a branch of the executive
authority. To the extent that IL is re-
quired by law TO receive money on !
deposit and repay it. or TO issue notes
and redeem them on demand. 30 is en- |
gagged in a business which cannot be |
conducted without having at all times
the ability 10 comply promptly with its |
obligations. Its operations necessarily |
affect, benehcaiiy or otherwise, the pri- !
vate financial affairs Of all the people, and |
they have a right TO be assured b. |
appropriate legislation that their CON |
fidence in the integrity and power OF |
the government has not been misplaced |
The recent repeal Of so much of the |
act Of July IL. iS)A as required the Sec
retary of the Treasury 10 purchase silver /
bullion and issue Treasury notes in pay |
ment for II. makes such radical change |
in the policy of the government respect !
ing the currency Of the country that |
until its effects are more fully developed |
DO not consider IL advisable 10 recon- /
mend further specific legislation on that |
subject"
The Farin Law
Mr.. Carlisle presents at some length 4
his views upon the necessity FOR COM /
prehensve revision OF our tariff laws in /
the interests of greater industrial and /
commercial freedom, which aIe directly \
In line with the argument presented I'm /
the majority report of the WAYS and /
Means Committee upon its tariff biz /
printed this morning. lie then goes on /
to say;
Il am Of the opinion that. with proper /
IN public expenditures which
IL is proposed will result i'm cOnsidera-
ble reduction from the estimates, an in-
crease of $0000,O00 to the revenue Of the |
fiscal year 1895. BY the imposition OF ad-
ditional taxes under the internal revenue
system. will supply sufficient means for