The evening world., 1893-12-20
LAST EDITION.
CARLISLE'S
TREASURY
REPORT.
The Secretary Begins With Z
Recommendation for
Bond Issues.
s28,00O,OO0 DEFICIT AHEAD.
Argument for Ad Valorem
Rather Than Specific
Tariff Rates.
INCOME TAXES ARE DISCUSSED.
Invested Capital Often Escapes
Sharing the Public
Burdens.
INCOME TAXES ARE DISCUSSED.
tBy Associated Press,

AttonJ r.
WASHINGTON, Dec. 20.-Tbe .rrr.,
report Of Secretary Carlisle was sent t.
both Houses Of Congress TODAY. rbe
document is a very thorough ana ~
haustive review of the condition OF the
Governments finances and contains va
rious recommendations for the relief Of
the Treasury.
After telling Of the years expenditures
In the various departments, the secre-
tary reports that on Dec. /, 1893, the
actual net balance in the Treasury. After
deducting the bank-note 6 per cent
redemption fund, outstanding drafts ana
checks, disbursing officers balances
agency accounts and the gold reserve
was only 81. OsS, AS. Is, and of the total
amount held s12. S47, SIT. 80 was in subsid-
larry silver and minor coins. The Score
tary says:
WORST TROUBLE OVER.
1t may be safely assumed that the vorst sn.r..
:! tne recent financial disturbances and copsecuept
uusiness oppression have been realized. and that
AFTER Tor the collection OF an adequate revenue Far
me support OF the Government; but II can scarcely
De expected that the receipts during the Remainder
OF tho fiscal year VIII exceed the expenditurcs IN
the same time. to such an extent as to prevent 4
very considerable deficiency.
DEFICIENCY OF SIS. ooo, 900.
! have. therefore, estimated a probable deficiency
gress concurs in this view OF the Situation n Mi,
% incumbent upon II to make some provision for
raising That amount as soon as practicable, By
RECOMMENDING BOND ISSUES.
On account Of the difficulty Of securing such 9
sum within the time It will be required BY The
imposition and collection Of additional taxes
ecommen mat the third section OF the act 70
proved Jan. II. 1878. which confers authority
upon tho Secretary OF the Treasury to issue anl
sell certain descriptions q United States honda
be so amended as to authorize him to issue an1
sell, at not less than par in coin, bonds to -
amount not exceeding 5000. 900, 600, bearing :
lower rate Of interest and having a shorter time
to run than those now provided for. and that -
De permitted To use from time to time such part
Sny 'H Sea pfeossas a. as m, may Be necessary e supply
occur during the fiscal year 1894 and 1895.
The Secretary is OF opinion that such bonds.
could be readily disposed Of through the sui.
treasures and post-ofices without the aEency
lions and without the payment OF commissions.
y AS POPULAR INVESTMENTS.
Such bonds would AFFORD TO the people at large
an opportunity to convert their surplus earnings
into a form OF security which. while II would
be perfectly safe. would not only Increase in value
by reason OF accumulating interest. but be at
an times available as a means Of procuring
and other countries ~justlacs the eonhden, BELIEF
that such a plan would be popular and success
full.
If q BONDS. OBLIGATIONS.
In case Congress should not consider 1t advisable
to authorize the Secretary to use for the purpose
OF supplying deficiencies In the revenues any pArS
OF the proceeds OF the bonds herein suggested. Z
time TO time. as may be necessary, the obligations
OF the Government, not exceeding in the aggregate
MY mi',,on dollars bearing a rate o. interest noe
year from date. and that he be permitted 20 sell
them at not less than oar, or use them Al not less
than par, In the payment OF public expenses. to
such creditors as may he willing to receive them.
The cordltion Of the Treasury is such that unless
some available means are promptly provided by
law for supplying the growing deficiency. the pub
lie service viii be seriously impaired. and PEN
sioners and other creditors subjected to great delay
and Inconvenience.
THE GOLD RESERVE.
TIT necessity Of maintaining the gold
reserve of 500, OOO, 900 is pointed out, and
n history OF the reserves recent fiuctua-
tions given, with a plea for the fuller
authority OF the Secretary regarding
ways and means of preserving the fund.
The report says:
While the laws have imposed upon the Treasury
Department all the duties and responsibilities %
a bank Of Issue; and 20 a certain extent the fane-
ferred upon the Secretary any part OF the dis
cretionary powers usually possessed BY the. en-
ecutive heads OF institutions engaged In ~eonduct-
ing this character OF financial business.
lis can neither negotiate temporary loans 10
meet casual denclencieh nor Tetire anu cancer tuu
notes OF the Government without substituting
other currency for them when the revenues are re-
lundant or their circulation exessuiys
tent. to any OF the eIpedients which In his judy
ment NAV be absolutely necessary to prevent In
furious disturbance Of the financial situation.
CURRENCY LEGISLATION.
As to currency legislation the Secre-
tary says:
The recent repeal Of SO much Of tho act Of July
II. 1890. as required the Secretary OF the Treas T
ury TO purchase silver bullion and issue Treasury
notes in payment for II, makes such a radical 4
change in the policy OF the Government respecting
the currency OF the country that until its effects
are more fully developed ! do not consider "a 49,
vlsable to recommend further specific leeisiAtion
upon that subject. .
Money does lot create business. but business
creates a demand for money. and until there ~
such a revival OF industry and trade a. 10 rg4nlfs
the use OF the circulation medium now outsfanl-
Ing II would be hazardous 10 arbitrarily iacr.as4
IL volume BY law o. V nAks material seh1ss.