The evening world., 1893-12-20
EDITION
CARL|SLE'S
TREASURY
REPORT.
The Secretary Begins with q
Recommendation for
Bond Issues.
s28,000,000 DEFICIT AHEAD.
Argument for Ad Valorem
Rather Than Specific
Tariff Rates.
INCOME TAXES ARE DISCUSSED.
Invested Capital Often ESCAPES
Sharing the Public
Burdens.
INCOME TAXES ARE DISCUSSED.
(Dy Associated PresaA

WASHINGTON. Dec. 2o.-The annu.,
report OF Secretary Carlisle was sent to
Doth Houses Of Congress to-day. Tbe
Is a very thorough ana ex-
massive review of the condition Of tbe
governments finances and contains va
rious recommendations for the relief of
the Treasury.
AFTER telling of the years expenditures
In the various departments, the Score
tary reports that on Dec. /, 1899. the
actual net balance in the Treasury. after
deducting the bank-note s per. cent.
redemption fund. outstanding drafts and
checks. disbursing officers balances.
agency accounts and the gold reserve,
was only s1. 03s, AS. rs, and of the total
amount held So, 4 7.5l7.8O was in subsid-
larry oilver and minor coins. The Secre-
tary y
WORST N TROUBLE OVER.
1t may be safely assumed that the worst enects
Of the recent financial disturbances and consequent
business depression have been realized. and thst
after for the collection OF an adequate revenue for
me support OF the Government; but II can scarcely
Of the fiscal year will exceed the Expenditure for
me same time. to such an extent as to prevent q
very considerable deficiency.
DEFICIENCY OF s2S, 600, 900.
have therefore, estimated a probable deficiency
OF Wy 600. 900 ut the close OF the year, and II Con-
gress concurs In this view Of the situation, IL will
DO Incumbent upon II to make some provision for
raising that amount as soon as practicable. BY
taxation or otherwise.
RECOMMENDING BON ISSUES.
On account OF the ~difnculty OF securing such q
sum within the time It will he required by he
imposition and collection OF additional, taxes. I
provide for the RESUMPTION of specie payments. ap-
proved Jan, II. 1875. which confers authority
S SIGn os .Ss ,See dsss Of the Treasury to issue and
De 80 amended as to authorize him to issue and
sell; at not less than par in coin, bonds to an
lower rate OF Interest and having q 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 he necessary to supply
any dehcleneies In the public revenue that may
The Secretary is OF opinion that such bond.L
could be readily disposed Of through the sne suS.
or intervention OF banks or other financial insti-
lions, and without the payment OF commissions.
BONDS AS POPULAR INVESTMENTS.
Such bonds would AFFORD to the people at large
into a form Of security which. while It would
be perfectly safe. would not only increase In value
all III simss Sr.i hSa%%u as q m nn.sns''; Of but proe BE a.
money when needed; and the experience OF this
and other countries tustihes the confident belief
that such a plan would be popular and succassr
full.
IF o BONDS. OBLIGATIONS.
In case Congress should not consider 1t advisable
OF supplying deficiencies In the revenues any part
OF the proceeds OF the bonds herein suggested, I
time to time, as may be necessary. the obligations
Of the Government. NOT exceeding In the aggregate
nifty million dollars. bearing a rate OF interest not
greater than 3 per cent. and payable after one
year from date, md that he be permitted to sell
them at not less than mar. or use them at not less
than par, In the payment OF public expenses, to
such creditors IS may he willing to receive them.
The cordition OF the Treasury is such that unless
some available means are promptly provided by
law for supplying the growing deficiency. the pub
lie service will be seriously impaired, and PEN
sIoners and other creditors subjected to great delay
and inconvenience.
THE GOLD RESERVE.
The necessity of maintaining the gold
reserve OF 500, 0O0, 900 Is pointed out, and
a history of the reserves recent iuctua-
tions given, with a plea Tor the fuller
ways and means of preserving the fund.
The report says:
While the laws have imposed upon the Treasury
Department all the duties and responsibilities OF
a bank Of Issue. and e a certain extent the func-
tions of a bank OF deposit, they have not con-
terred upon the Secretary any part Of the dis
ecutive heads OF institutions engaged In conduct
ing this character Of financial business
He can neither negotiate temporary loans to
meet casual deficiencies nor retire and cancel the
notes of the Government without substituting
dundant or their circulation excessive.
nor can he resort. except to a very limited ex-
tent. to any Of the expedients which In his judg-
ment may be absolutely necessary to prevent In
furious disturbance Of the financial situation.
CURRENCY LEGISLATION.
As to currency legislation the Secre-
tary says:
The recent repeal OF so much OF the act OF July
II. 1890. as required the Secretary OF the Treas
ury to purchase silye" bullion and issue Treasury
notes In payment for II, makes such a radical
change in the policy OF the government respecting
the currency OF the country that until Its effects
are more fully developed | do not consider Il ad-
visable to recommend further specific legislation
upon that subject.
Money does rot create business. but business
a demand for money, and until there 10
such a revival OF industry and trade AZ to require
the use OF the circulation medium now outstAnd-
ing II would be hazardous to arbitrarily tncrsass