The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1893-12-20
NATIONAL. FINANCE.
y.
Secretary Carllsle's Report
on the Condition of
the Treasury.
MORE GOLD VENEEDED.
Plans to Meet the Present De-
feit-Bonds For the
Masses.
SILVER VERY UNPOPULAR.
Aims of a Patriotic Tariff Policy
Free Materials and Cheap
Goods for the Poor.
MORE GOLD RESERVE NEEDED.
SILVER VERY UNPOPULAR.

Goods for the Poor.
WASHINGTON, D. c., Dec 20, 1S9S.-The
annual report of John G. Carlisle, Secretary
of the Treasury, was transmitted to Congress
today. The Secretary estimated the revenues
of the Government for the fiscal year which
will end on June 80 next at $3.50, 121 900, and
the expenditures for the same period will
amount to s456, ,121000, leaving deficit OF
S2S, 600 on the year. He mentions that
there are Pacific Railroad bonds, falling due
within the year 1894, to the amount of S2,-
362, ,0O0 which must be paid, at maturity, and
recommends that Congress take action at
this session to provide for them.
He suggests as a means of enabling the
government to promptly meet the emergency
and provide larger reserve fund several
courses of action. One is the issue of 3 per
cent. five-year bonds, in small amounts to
be disposed of through the sub-treasuries
and postoffices to our own people. Another,
the issue Of fifty million dollars in
one year, 3 per cent bonds at par,
until the effect of the repeal of the Sherman
silver purchase law is more fully developed,
he does not consider it advisable to recon-
mend further specific legislation on that
subject. He favors legislation to authorize
more eXUenueu use OI SuFeF CSTU1I-
Gates. He refers to the opinion of
his predecessor and of the late
Attorney General, that the gain or
seignorage resulting from the coinage of
the silver bullion as it progresses constitutes
part of the general assets of the Treasury,
and states that he has ordered the mints at
New Orleans and San Francisco to be kept
in readiness to commence the coinage
of standard silver dollars at any
time when required. He cham
pions the system of substituting
ad valorem duties for specific duties in the
collection of customs. and recommends an in
crease OF ten cents a gallon in the internal
revenue tax ON distilled spirits, the imposi-
ton of additional internal revenue taxes on
cigars and cigarettes, the imposition of new
taxes on playing cards, cosmetics perfum-
cries. legacies and SUGGESTIONS, and incomes
derived from investment in stocks and bonds
of corporations and joint stock companies.
ISSUE OF BONDS
In speaking of the possible issue of bonds,
the Secretary says
s'If the authority now existing should be
SO modified as to empower the Secretary of
the Treasury to issue the bonds in denomina-
tions or sums of twenty-five dollars and its
multiples, they could be readily disposed of
through the sub-treasuries and post offices
without the agency or Intervention of banks
OF other financial institutions, and without
the payment of commissions. Such bonds
portunity to convert their surplus earnings
into form of security which, while it would
be perfectly safe, would not only increase in
value by reason of accumulating interest but
be at all times available as a means of
procuring money when needed; and the
experience of this and other countries justi-
fled the confident belief that such plan
would be popular and successful. Congress
alone has the power to adopt such meas
ures as will relieve the present situation
and enable the Treasury to continue
the punctual payment of all legitimate
demands upon it, and I respectfully
but earnestly urge that immediate
attention be given to the subject. The neces-
sity for the extention of the power of the
Secretary to procure and maintain larger
reserve for the redemption of United States
currency must, 1 think, be evident to every
one who has given serious thoughts to the
subject"
COIN AND CURRENCY.
Secretary Carlisle says that at the date of
the resumption of specie payments, January
/, 1879, there were $346, ,681 ,016 of the old
legal tender notes to be redeemed, and the
Secretary of the Treasury considered that
$150,000,0 900 would constitute a sufficient
basis for the maintenance of that
amount of currency at par. But
since July IA, 1890, additional Treasury
notes have been issued to the amount of
S155, $3.50, $40, of which there are now out
ment obligations in currency $499 999, ,240.
in addition; he says that there have been
coined under authority of the law S419 1872
$50 in legal-tender silver, upon which certifi-
Gates have been issued to the amount of
1894, 13S, ,504.
TOO MUCH MONEY.
The Secretary SAYS that the amount of
money in the country outside of the trea-
sul.y on December l. 1888, was S112, ,404, ,947
greater fhan the amount outstanding on
November !, 1S92, and insists that it is greater
than is required for the transaction of
This is conclusively shown, he says,
by the fact that the money has
accumulated and is still accommodating in
the financial centers to such an extent as to
constitute serious embarrassment to the
banks in which it is deposited. The Secretary
Eays that the money does not create bust
1less, but business creates a demand for
money, and until there is such a
revival of industry and trade as
10 require the use of the circulat-
ing medium now outstanding, it would be
hazardous to arbitrarily increase its volume
by law, or to make material changes in its
character by disturbing in any manner the
relations which its different forms now bear
to each other
DON'T LIKE SILVER.
Secretary Carlisle says that one of the
principal difficulties encountered by the
treasury 1cDdFbluSllU T6SAlLS llOul LIE lIulS-
position of the public to retain standard sill
yer dollars and silver certificates in circula-
ton. The Secretary does not know why this
should be and adds
'sWith the policy of maintaining equality
In the exchangeable value Of all our currency
firmly established and the further accuuula-
tion of silver bullion arrested there is no
substantial reason why the silver certificate
should not be favorably received and as lib
orally treated by the public as any other
form of note in circulation and for the pur
pose of creating greater demand for their
permanent use in the daily
transactions of the people, / have
directed that, as far as the law
permits, and as rapidly as the opportunity is
afforded, the amount of such cestiflcates of
denominations less than ten dollars shall be
increased by substituting them for larger
ones to be retired and that the small denom-
nations of other kinds of currency shall
be retired as they are retired into
the Treasury and larger ones substituted in
their places.
''There are now outstanding United States
legal tender notes to the amount of S6I ,944,-
941 in denominations less than $40; treasury
notes issued under the actof 1890 of denom-
ination less than $40, s64 685, 4s9, aud ma
tiOnal bank notes. S6:}. 339l GIG. / ainsof the