The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1893-12-28
THE NATIONS FINANCES
LENGTHY SYNOPSIS OF SECRETARY
cARLIsLE's ANNUAL REPORT.
Estimates Of Receipts and Disbursements
for Next Year, Based on the Tariff Bill
Now Before Congresa-Advocates
Strict Economy.


During the first five months OF the
present fiscal year expenditures ex-
ceeded receipts S?9,91s,095 GO. There
has been not only d Grease OF re-
ceipts but also an increase OF expend-
itures. AS result of these changes
on Dec. the actual net balance in the
treasury, deducting the bank note re-
demption fund. outstanding drafts,
disbursing officers balances, other &C
counts and gold reserve, was only
$1103S4, ASP. The secretary says 1t may
be safely assumed that the worst
effects of the recent disturbances and
CONSEQUENT business depression has
been realized and the condition will be
much more favorable hereafter for coll
lection of adequate revenue for the
support of the government, but 1T can
scarcely be expected that receipts for
the remainder of the year will exceed
the expenditures for the same time to
such an extent as TO prevent very
considerable deficiency. These esti-
mates show probable deficiency OF
SOS, 600 600 at the close of the year and
he recommends that the act for the re
sumption of specie payments APPROX
ed Jan. IA, 1875, be so amended as to
authorize the issue and sale at
not IS than par in com bonds to an
amount not exceeding 100000 600,
bearing lower rate of interest and
having shorter time TO run than
those now provided for, and that he
be permitted to use from time to time
such part of the proceeds as will be
necessary TO supply any deficit in the
public revenue that may occur during
the year 1894 8.
The secretary then devotes consid.
cradle space to detailed criticisms of
the laws OF 1876 and 1880 in the light Of
present needs, and goes on to say that
if the authority existing be so modi-
fled as to empower the treasury
to issue bonds in denominations
of $25 and multiplies they could
be readily disposed of without the
agency of financial institutions and
without payment of commissions.
Such bonds would afford to the people
at large means to CONVEX their surplus
earnings into form OF security which,
while practically safe, would not only
increase in value by reason OF accumu'
lating interest, but be at all times
available as means of procuring
money when needed. In case congress
should not consider it available to
authorize the secretary to use for
the purpose Of supplying the deficit
in revenues any part of the proceeds
of the bonds herein suggested, he re-
commends that he be empowered to
execute as may be necessary, obliga-
lions of the government not exceeding
in the aggregate $50, 100000, bearing
rate of interest not greater than - per
cent and payable after year from
date and that he be permitted to sell
them at not less than par in pay
ment of public expenses to such
creditors as may be willing to take
them. He says the condition OF the
treasury is such that unless some avail
able means are promptly provided the
public service will be seriously
impaired and pensioners and other
creditors subjected to delay and in.
convenience.
The necessity of extensions of pow
er of the secretary to procure and
maintain large reserve for redemp.
ton of United States currency must,
the secretary thinks, be evident to
6NtII Ollt. hD bllO utiuO VI
of specie payment the only form of
currency except coin certificates to
which the government required or au
thorlzed by leave to redeem in coin
was old legal tender notes and now
amounting to $34O, ,O1G and it
was considered by the secretary
es me treasury that the coin
reserve of $1OO00O0OO would
constitute sufficient basis for the main
tanance of that amount of currency at
par. but under the act of July IA, 1890,
additional treasury notes were issued
TO the amount of $l55,030 040, all of
which the secretary was now required
by law to redeem in coin on presenta-
tion.
Under this circumstances it is in his
opionion necessary that not only he he
clothed with full power TO procure
and maintain an ample reserve in coin
but the purposes for which the re-
serve is to be held and to be
used should be made comprehensive
as duty imposed upon him by the
laws existence. Such authority in a
constantly available form would of
itself inspire confidence in the security
and stability of our currency, that its
ACTUAL exercise mlBul never become
necessary, but the futility of declaring
a specific policy and withholding
means which may become necessary
for its execution is too apparent to re-
quire comment.
Largely he says on on account of
apprehensions as to the ability of the
government nnder the legislation then
existing to continue current redempt-
ion of notes in coin and maintain a
parity of the two metals, occurred last
summers gold shipments of which
the secretary gives detailed history.
Then he says that AZ longs as the gov
eminent contains the unwise policy of
keeping our notes outstanding to cir
culate rs currency and undertakes to
provide for redemption in coin on
presentation it will be In my opinion
essential for the secretary
OF the treasury to have clear and
undoubted authority to secure means
which may from time to time become
necessary to enable him to meet such
emergency as the one which recently
occurred in our financial affairs.
The secretary then at great length
details the Inconvenience suffered by
the treasury department in maintain.