The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-12-21
Changes That the Secretary Be-
lieyeS Would Be Beneficial.
Plea for Tariff Revision-Ad Valorem
Duties, Income Tax and a Heavier
Charge on Whisky Favored.

WASHINGTON, Dec. 2l-The annual re-
port of Secretary Carlisle was sent to both
house of Congress to-day. The document IS
a very thorough and exhaustive review OF
the condition OF the governments finances,
and contains various recommendations for
the relief Of the treasury. The Secretary
discusses at considerable length the follow
ing general topics. viz, condition OF the
treasury, currency legislation and review
Of the revenue laws. What the Secretary
has to say on the questions follows:
During the first five months OF the pres
ent fiscal year the expenditures OF the gov
eminent have exceeded its receipts TO the
amount of 500, 91S. OS5.6 IS. There has been nor
only a decrease OF receipts, but also an in
crease OF expenditures during this period.
months of the last fiscal year. The revenues
from customs have fallen Off S23,669, 1914.
from internal taxes s., $50. Coz. sc, and from
miscellaneous receipts $24, 15239. The ex-
penditures on account OF the War Depart-
ment in the execution of contracts made
Sc, 1872, l2.42; on account of the Navy De-
partment, for the same reason, the increase
has been $l,sl2.2s9-S1; on account OF Indians,
$55b,UlS.55, ana on account or interest, $6S,-
450.25; but there have been reductions in
some other branches OF the public service
to the amount of Sc, &2,2O6, as compared with
the corresponding period last year. The re-
suit of these changes is that on the LIST day
of December, 1893, the. actual net balance
in the treasury, after deducting the bank
note ive-per-cent. redemption fund, out-
standing drafts and checks, disbursing off,
GERS balances, agency accounts and the
gold reserve. was only 81, OBS, 44S.25, and OF
the total amount held Sl23435lISO was i'm
subsidiary silver and minor coins.
1T may be safely assumed that the worst
effects of the recent financial disturbances
and consequent business depression have
been realized, and that the condition Will,
be much more favorable hereafter for thS
collection or an adequate revenue for the
SUPPORT OF the government, but IL can
scarcely be expected that the receipts DUR
ing the remainder Of the fiscal year will
exceed the expenditures for the same time
TO such an extent as TO prevent a very con-
siderable deficiency. / have, therefore, es-
timated a probable deficiency Of S2S.0O0.OOo
at the close of the year, and If Congress
concurs in this view OF the situation ii Will
be upon IL 10 make some pro-
vision for raising that amount as soon az
practicable by this action or otherwise. on
account of the difficulty of securing such q
sum within the time II would be required
tional taxes, l recommend that the third
section OF the act to provide for the re-
sumption of specie payments, approved
Jan. II, 1875, which cOnfers authority on
the Secretary OF the Treasury TO issue and
sell certain descriptions OF United States
bonds, be so amended as 10 authorize him
10 issue and~sell, at not less than par In
coin, bonds TO an amount not exceeding
500, 0,000, bearing a lower rate OF interest
and having a shorter time to run than
mitted TO use from time To time such part
Of the proceeds as may be necessary 20 sup-
tRh6g st ana may u OCCUR during the fhsscaii' year Sc
and 1886.
The section referred to provides that. tor
enable the Secretary Of the Treasury to
prepare and provide for redemption In this
act authorized or required. he is author
lied to use any surplus revenues from time
to time in the treasury not otherwise APP
propriated, and to issue. sell and dispose
OF at not less than par in coin. either OF
the description Of bonds Of the United
CT. 1ggr~al.l fn the naf Of Top0rara
approved July IA, 1870. entitled An act 10
authorize the %refunding Of the national
PRESENT BOND ACTS.
"The bonds authorized by act of July
II, 1870, are described as follows:
"First-Bonds not exceeding in the ag-
gregate S00.0Oo.C Co, in such forms as the
Secretary may prescribe, and OF denomina-
tons Of $50, or some multiple OF that sum-,
redeemable in coin OF the standard veiue
at the pleasure of the United States after
ter years from the date Of their issue.
and bearing interest payable semi-annually
in such coin at the rate OF . per cent. per
annum.
gregate $500. 100000 the same in all respects
as those above described, but payable ac
the pleasure OF the United States after mr.
teen years from the date OF their Issue,
and bearing interest at the rate Of AZ per
cent. Der annuIn.
"Third-Bonds not exceeding in the ag-
gregate $1,00.0JO,00, the same IN all re-
spects as above described. but payaDle at
the Measure OF the United states after
thirty years from the date OF their issue.
and bearing interest at the rate Oh = ptr
an the present condition of the public
credit nothing less than the existence OF a
great and pressing financial emergency
would. in my opinion. justify the issue OF
sale OF any Of these classes OF BONDS. On
the first class the interest would amount.
AT the maturity OF the bonds, to one-half
the principal: On the second IL would
amount to more than two-thirds OF the
principal and on the third class IL would
exceed the principal by % per cent. III any
one of these methods OF raising money
were now presented as an orlglnH mes
ure for consideration in Congress L am sat
isfed il would not receive the apprOFal OF
that body OF the people Whatever may
have been their merits nearly a quarter
80 : century ago when the credit or the
Government was. to "A certain extent, I'M
haired By the existence or a large INTEREST
hearing public debt and the general use
of a denraciated paper currency, not then
redeemable in any kind or coin, our imam
cial standing Is now 50 hl6h NAT on. pu0s
lie Civilizations, bearing any OF the rates OF
interest authorized b. the law referred 10,
xvouId have 20 be sold at a premium 80
Great as 20 prevent large classes OF our
Seonia VIII might otherwise invest in
them. from becoming pucnaSefS lne
United States four-per-cent bonds pdyabts
in 1907 are now selling at a rate which
yields investors less than 8 per cent upos
their cost. and 1 am confident that a botd
bearing interest at the rate OF 8 per cent
payable quarterly. and r~edeemabie AT the
aption of the government after nVe years,
could be readily sold at par IN our own
country
IF the authority now existing should be
so modified - TO empower the Secretary
OF the Treasury TO issue bonds IN denomi,
nations or sums OF twenty-five dollars ana
is multiples tehy could be readily disposed
OF through the subtreasuries and poStofhceS
without the agency or intervention OF banks
or other financial institutions and without
the payment OF commissions. Such bonds
would afford TO the people at lar6e an op-
portunity To convert their surplus earnings
into a form OF security which. while IL
would be perfectly safe, would not only In
crease Ia value by reason OF accommodating