The record-union., 1893-03-08
Special to the REcoRD-US1oS.

special 10 IDe tNECOkD-ONlOE-
WASHINGTON, March 7.-Ex-Secretary
Charles Foster said this evening that the
treasury was down to bedrock when
turned over to the new Secretary to-day.
"Carlisle nnds himself confronted with a
great responsibility to maintain the gold
basis, and a man OF less ability might
find the task very difficult one. 1t is
probable that before he has been two
days in office he will find it necessary to
choose between issuing bonds and trench
ing upon the gold reserve"
The ex-Secretary said the department
was now practically to the gold reserve,
there being less than two millions OF free
gold. He did not regard the situation rs
alarming, however, as all the excitement
about the gold shipments appears to have
subsidized 1t was, he said, better con-
dition than he expected to find at this
time, and did not look as alarming as it
did week or more ago.
When asked if he did not think bonds
would have to be issued, he replied:
"Carlisle might, instead of that, use some
of the reserve" He said Carlisle un-
doubtedly had the right TO use part Of the
gold reserve if he needed to do so. Be-
sides the gold reserve, Foster said he
would turn over to the new Secretary
about S29, COO. 600, consisting of the Ma
tional bank reserve and subsidiary COINS
and disbursing officers balances. Against
this are all the outstanding drafts, covering
most of 1T, but not liable to be presented
for payment. Congress" he said, should
have increased the whisky tax 30 cents,
and given us a chance to repleniSh our
stock of money. The fact is, the demand
for gold is perfectly regular. 1t is not
speculative: it is a natural demand OF for
eign countries needing gold. The only
thing artificial or speculative in the situa-
ton was an effort made to keep the gold
here. That, of course, was to keep the
mark ct steady and not to meet business de-
mands. However, there are nearly $780,
OO0.0O0 gold in the country. The public
mind is comparatively easy, and have
no doubt Carlisle will be able to put him
self in position to meet all the demands
for gold"
HOUSE COMMITTEE REPORTS.
WAsHING GToN, March 7.-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 the printer.
Springer, who prepared the majority re-
port, says: Assuming that the state
ments made by Secretary Foster are cor
rect, on June Both next there will be an
estimated cash balance of S20, ,992, ,377 over
and above the legal gold reserve. This
estimated balance is probably too large.
The available balance will be reduced by
the payment of the Choctaw claims, =, =
100000, also by any unestimated and eX-
traordinary expenditures, and by any
future of estimated receipts during the
time indicated. The majority is 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 ST, 100000"
As to 1891, Springer says the Sec
retary estimated an available cash bal
ance of S47, ,S57, ,4G2, but note at the bot
tom of the Treasurer's statement shows
this balance chargeable with contract liza
bllities already appropriated for amount
ing to $40, 100000. 1t is impossible that
all this amount will be called for during
that fiscal year, but this amount is esti-
mated by the department. Under the
most careful estimates that can now be
made, it is apparent" says the report
s'that at the end of the ensaing fiscal year
there will be a deficiency amounting tc
from $4,000, ,OGO to S40,e00,000. In these
calculations no account whatever is taken
of the requirements of the sinking fund
The balance due the sinking fund in 1S9.
or .,,,f- fA,-
are estimated at S4S, ,69S, ,000 and at the enc
of the next fiscal year there will be due {
fund of little over 100000, 900"
dn conclusion, the majority cite Secre-
tsrv Fosters statement that in his opin-
ion there would be deficit at the end o
the fiscal year 1894, and the receipts O
the Government should be increased a
once by S50,000,000 to meet the Treasury
conditions. as set forth in his report, anG
increase the gold reserve fund by S25,,
100000.
The minority report was drafted by
Representative Payne of New York, ant
signed by all Republican members of the
committee 1t says: "The conclusions o
the majority, from the evidence pre-
sented. is wholly unwarranted and mis-
leading. In fact, there seems to be al
utter lack of evidence TO justify any o
the criticisms of the majority upon tht
statement of the Secretary, which showed
a surplus in the Treasury on June 80, 1894
Trbe statements of the Secretary are sup
vlemented by evidence of Treasury eX
,,erts evidently of the most conseryativ,
character. The estimated receipts wer'
,lace6 at a minimum, while the esti
mated expenditures were placed at
maximum"
speaking of the deduction of the Choc
+o,y claim. the minority say the majority
sra very swift to charge this S5,000,0G
o-ainst the estimated balance for 1898
Int now deduct it from the estimated
,,ovn,ents in 1894. in which year the Sec
ratarv estimated that it would be paid
The majority was correct in charging tn
contract liabilities for 1884 at SIC, 100000
against an apparent balance OF i'ooo,eou
which was stated in a foot note by tn
Secretary. 1t is quite evident, however
that the Secretary does not believe thl
S4O.oOO.OaO will all be paid during le9l
and he had no doubt but that the conal
ton of the Treasury will be relieved TO
considerable extent by reduction II
nayments of these contract accounts.
The majority would also charge, IN ao