St. Paul daily globe., 1893-01-17
Experts Getting Out a State
ment Of the Treasupy's
Condition.
The Secretary Has Been Hav-
ing a Hard Time to Get
Along.
A Difficult Problem Confront
ing the Incoming Ad-
miniStratiOn.
Heavy Increase in Pension
Payments a WeightY
Burden.

WA sHINGToN, Jan. 16.-The sub
committee of the ways and means COM
mttee on the investigation of the con-
dition of the treasury expects to receive
the latter part Of this week large
amount of information from the treas
ury experts showing the receipts and
expenditures Of the government. The
treasury officials, under the direction of
Secretary Foster and Mr.. McLennan,
his rght-hand man in fiscal matters,
have been at work steadily for the past
three weeks, and their work is expected
to throw a great deal of light on
the state of the governments finances,
and the problem which Mr.. Cleve-
lands administration and the Demo-
cratic party will have to meet in the
next two years. 1t can be said on good
authority that the treasury statement
will not show deficit in the treasury,
or the probability of one during the past
present fiscal year, but a close analysis
of it is expected to show that Secretary
Foster had hard task "making both
ends meet" and that his successor will
be likely, unless relieved by legislation
at this session raising
Additional Revenue,
to have even a harder task, with pen
sions steadily increasing. Secretary
Foster has informed members of con-
gress that there will be an available
balance in the treasury July next of
$2O,OOO,OOO. This balance, however, in
cludes nothing for the sinking fund, OF
nh, hn Qrk,
S4S.000,000.
Democratic members of congress eX-
pect to show that there have been times
when a deficiency was only prevented
by policy of not paying anything
today, the payment of which could be
put off until tomorrow. Not a single
new public building has been provided
for during this congress, but there still
remains over S14,000,000 to be expended
on account of public buildings, and sl1,-
100000 against which there are no out
standing contracts. There are other
matters, also, in which the government
revenues made it necessary for the
treasury to Ego Slow for fear that for
the first time in many years the balance
would be on the wrong side OF the
ledger. Added to this state of affairs, ls
the heavy increase for pension pay
ments, which next year will be many
millions greater (unlesS the grant OF
new pensions is diminished), more than
enough to wipe out the S20, 100000 OF ex-
pecJed surplus July l.
A Perplexing Problem.
These things are giving the partyabout
to come into power considerable con-
Germ, and in order that the new admin
istration may go along smoothly It's
considered highly desirable that the
treasury should have good working
balance-say $50,000,OO0 more. Secretary
Foster will probably be examined on
raising the money. On the result of
their investigation Will depend whether
| or not the ways and means committee
will recommend legislation at this ses-
| sion. Owing to the nearneSs of the end
of congress the probabilities are against
any actual legislation, though the facts
may develop SO strongly as to
| the necessity of immediate ac-
ton as to force both parties to
work together - the Republicans
in order that deficiency early in the
| coming administration may not be laid
| at its doors, and the Democrats to main
| tain the credit of the incoming admins
tration. At present the plan suggested
| which is regarded as the most eXpedlent
| is the increase of the whisky tax.
This Increase Would Raise
| over 49,, 900, 900 additional yearly If the
! law could be SO framed as to affect
whisky in bond. 1t is considered pos
! sible, however, that the distillers would
| meet the increased tax by taking WhlS-
ky out of bond at the present rate. 1t is
pointed out, however, that the large
amount of immediate revenue would
| give the government working balance
| for some time to come. and that after a
| few months the increased tax would De-
| gin to bring in more revenue to meet the
| Increasing pension payments. There are
many persons who prefer to revise the
whole taxing system at once, but against
| this course it is urged that the trouble
| over the withdrawal from bond OF
whisky because of an increased tax Will
| have to be met at some time, and that II
| had better be met now, so that there
| will be more revenue from internal
| sources to meet the increase of expenses
| a year hence at time when the Gus
| toms revenues will be falling OIL IN ad-
vance Of a probable new tariff law.
What the outcome will be is, of course,
uncertain at this time, but matters may
| soon develop by action on the part OF
| the ways and means committee.
| w. +. McLennon, treasurer or tne
war division Of the treasury department.,
| who has had charge of the preparation
| of the exhibit showing the financial coll
| dition of the treasury, has broken d0Wl
| and is suffering from nervous prostra-
ton as result OF his labors.