St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-03-08
SEEING THE BOTT ON.
Secretary Carlisle Finds but
Little Free Gold in the
Treasury.
He Will Have to Trench on
the Reserve or Issue
Bonds.
Result Of the Investigation
Into the TreasuPy's
Condition.
Probability Of a Deficit at the
End Of the Fiscal Year
of 1894.

WASHINGTON, March 7.-Secretary
Carlisle, when he assumed charge of
the treasury department this afternoon,
had on hand s1,25O,OOO of free gold and
a met balance of S25,5O0, 900, of which
S11, 10000 is in national bank deposit
tories and 81, 100000 in subsidiary coin,
and 100000 in minor coins.
Ex-Secretary Charles Foster said this
evening that the treasury was down to
bedrock when turned over to the new
secretary today. Mr.. Carlisle finds
himself confronted with a great re-
sponsibility to maintain the gold basis,
and man of less ability might find the
task a very difficult one. 1t is probable
that before he has been two days in his
Office he will find it necessary to choose
between issuing bonds and trenchlng
upon the gold reserve. The eX-secre-
tary said that the department was now
practically to the gold reserve, there
being less than S2,000,000 Of free gold.
He did not regard the situation as
alarming, however, as all the excite
ment about the gold shipments ap-
peared to have subsided. 1t was, he
said,
A Better Condition
than he expected to find at this time,
and did not look as alarming as it did a
week or more ago. Without saying in
so many words, he intimated that Mr..
Carlisle would have to trench upon the
slO0,0OO,OOO gold reserve, or else issue
bonds.
When asked If he did not think bonds
would have to be issued, he replied
that Mr.. Carlisle might, instead of that,
use some of the reserve. He did not
want to make any predictions as to
what his successor would do, but be
was confident that he would be able by
some means to preserve the gold basis
by meeting all demands for gold made
upon the department. He said that Mr..
Carlisle undoubtedly had right to use
a part of the gold reserve If he needed
to do so.
Congress" he said, "should have in
creased the whisky tax 80 cents and
given us a chance to replenish our stock
of money. The fact is, he added, that
the demand for gold is perfectly regu-
lar. 1t is not speculative. 1t is the
natural demand, foreign countries need
ing the gold. The only thing artificial
or speculative in the situation was the
effort made to keep the gold here. Our
bankers borrowed Sl0,000,000 of gold to
keep it here. That, of course, was to
keep the market steady and not to meet
business demands. However, there is
nearly $500, 100000 Of gold in this cOun-
try, the public mind Is comparatively
easy, and have no doubt that Mr.. Car
Isle will be able to put himself in
position to meet all demands for gold"
Condition Of the Treasury.
The majority and minority reports OF
the ways and means on the investlga-
ton into the condition of the treasury
made by the committee we're today COM
pleted and sent to the printer. Append
ed to the majority report, prepared by
Representative Springer, is a copy of
the statements sent to the committee by
the treasury department and of the
testimony taken on the subject. Mr..
Springer, in his report. says, assuming
that the statements made by Secretary
Foster are correct, on the 30th of June
utAG bilclC Will NC olt Coli
cash balance of s20,992.377 over
and above the legal gold reserve.
1t will appear, from an examination of
Mr.. Fosters verbal statement to the
committee in explanation of this esti-
mated balance, that it is probably too
large. The available balance will be
reduced by the payment of the ChOctaw
claims S3,000.O 900. 1t will also be reduced
by any uneStImated and extraordinary
expenditures which may be incurred,
and also by any failure of the estimated
receipts from customs, internal revenue
or other sources during the time indi-
Gated. The majority are of the opinion
that at the close of the present fiscal
year there will be an available cash bal
ance in the treasury, aside from the gold
reserve, of not over Sl3,OOO,OOO.
The Outlook in 1894.
As to 1894, Mr.. Springer says that,
according to the treasurer's statement,
the secretary estimated an available
cash balance Of s47, S57, ,402, not taking
the SlOO, 900. 900 gold reserve into consid-
Grafton, but note at the bottom of the
treasurer's statement shows that this
balance is chargeable with contract Ia
bilities appropriated for amounting to
$4O,000,000. 1t is impossible that all of
this amount will be called for during
that fiscal year, but this is the
amount estimated by the depart
ment, and the available cash bal
ance would be reduced to $500. 900.
1t also appears from this statement that
of the contract liabilities existing Dec.
81. 1892, the item Sl6.115,750 will be
called for in 1894 for rivers and harbors.
OF this amount S14, 166, l53 has been ap-
propriated for in the sundry civil bill
for 1894. The charge upon the treasury
for that year must also be augmented by
whatever deficiency appropriations may
be re eQuiTed, which, including pension
deficiencies, have averaged during the
past five sessions S25, 100000 each year.
To this deficiency must be added tine
amount of miscellaneous appropriations
which for five years past have averaged
$7,0O0,000 each session. From these
estimates, however, it is probable there
may be some saving on
Estimated Expenditures
in the actual appropriations. Under the
most careful estimates that can now be
made, it is apparent, says the report,
that at the end of the ensuing fiscal
year there will be deficiency amount
ing to from $50, 900. 600 to SAC. o,OOG.
In these calculations 10 account what
ever has been taken of the requirements
of the sinking fund. The redulrements
Of this fund were not met during the
past fiscal year; no effort has been
made to meet such requirements during
the current fiscal year, nor can any OF
its requirements be observed during the
ensuing fiscal year: unless there
is large ipcrease in the rev.
e1ues of the government The
balance due the sinking fund in