The morning call., 1893-12-21
STANDS WITH THE BANKERS.
Recommendations Pleasing tC
Wall Street.
VIEWS ON PACIFIC RAILROADS
Would Regard 1t as Unfortunate il
the Government Had to
Take Them.

was sent to Congress to-day. 1t shows
that during the first five months of the
present fiscal year the expenditures of the
Government exceeded the receipts $40, 91S-
095 This was brought about by decrease
III the receipts and an increase in the eX.
penditures compared with the cores pond
ing months last year.
The customs revenues fell off S23, ,5S9 S29
and the internal taxes 7,866667. The ex-
penditureS in the War Department in the
execution of contracts made in the last
FISCAL year increased Sc. 1872. .132, and in the
navy, for the same reason, 1872. 2S9, with
other minor increases. There have been
reductions in other branches of the public
service Of Sc, 3j2, 205.
On December l the net balance in the
treasury was only S110, ,036 AS. OF the total
amount held S12. 347.517 was in subsidiary
silver and minor CONS.
The Secretary assumes that the worst
effects of the recent financial disturbances
and business depression are passed. and
that the remainder of the year will show
better results, and he estimates the de.
fcency at the close of the year at S2S, ,00O,-
600. TO meet this he recommends the
amendment of the specie payments re-
sell per cent bonds not exceeding $780,
000.000 in amount at not less than par,
saying, however, that in bis opinion only
great pressing financial emergencies justi-
fes such a course. He suggests that bonds
be issued in denominations of S25 and
multiples thereof, to be sold through the
sab-treasuries and the Postoffices. In
case Congress should decline to follow this
course. he recommends that the Secretary
be empowered to execute obligations of the
Government not to exceed $50, 600. 600 bear
ing per cent, 10 be sold or circulated in
payment of Government obligations.
He urges prompt action to prevent seri-
GUS impairment of the public service. the
payment of pensions, and he points out
the necessity for the extension of the power
of the Secretary to maintain a larger re-
serve for the redemption of United States
currency, showing that at the date of the
resumption of specie payment there were
legal tender notes subject to redemption
outstanding to the amount of S346. 6S1, ,016.
Now these obligations nave increased to
S499, 990, 240 direct obligations, besides the
requirement to preserve the parity between
gold and silver on S419, 332. $50 legal tender
silver, on which 1884, 13S. .504 In silver cer-
tlfcates has been issued.
To emphasize this he speaks of the
heavy exports of gold curing the current
calendar year. which finally, in spite of all
reports, has carried the gold reserve to
nearly S20,000,0O0 below the legal require
ments, the lowest point ever reached since
the resumption of specie payments. The
Secretary adds: 'As long as the Govern
ment continues its unwise policy of keep
ing its own notes Outstanding to circulate
as currency, and undertakes to provide for
their redemption in coin on presentation,
it will be. il my opinion. essential for the
Secretary Of the Treasury to possess the
means to meet such emergen cies as the one
which recently occurred in our financial
affairs.
He says the repeal of the silver purchase
act makes such radical a change in the cur
rency policy of the Government that until
it's effects are more fully developed he
does not consider it advisable to recon-
mend further specific legislation on that
subject.
lie says the great increase in the bank
reserve in the monetary centers of the
country show conclusiyely the amount of
money in the country is greater than re-
quired for the transaction of business.
He finds that one of the principal diff
culties Of the treasury results from the
indisposition of the public to retain silver
dollars and silver certificates in circula-
tion. He says he cannot understand why
this should be the case. and has sought
remedy for it by increasing the number
OF silver certificates of denominations less
than $40. retiring the larger ones and SUBJ
stituting for them larger notes of other
kinds of currency.
The report then deals at length with the
tariff laws. 1t argues in favor of ad
valOrem duties; declares the inducements
to commit frauds and perjury are much
greater under the system of compound
rates, as at present, than under the ad
valorem system. He also argues strongly
the desirability for free raw materials.
The estimated revenues for the fiscal
year of 1895, on the basis of existing laws,
is S454, ,427,74S; expenditures, S448, 303. 7S9
The estimated revenues from customs were
Sl90.000000. Ii the impurtatiOns Of the
fiscal year 1895 should not exceed those of
1898, the receipts under the pending tariff
bill will be S122. 100000; but the Secretary
believes the proposed reductions will in
crease the impoftatlons, and thinks with
economy the increase of S150Oo,000 in the
internal revenue will supply the necessary
funds for the Government. To this end
he recommends an increase of 10 cents per
gallon on distilled spirits and additional
taxes on cigars and cigarettes and new
taxes on playing cards. cosmetics. per-
fumeries. legacies, SUGGESTIONS, incomes
from stocks and bonds Of corporations and
Joint stock companies.
The Secretary says much difficulty is
experienced by officers charged with the
duty of assisting in The enforcement of the
Chinese exclusion laws by reason of GER
tain practices resorted to by the Chinese
cooly.
Il am of opinion" he says, ''that as long
as our laws prohibit the landing of Chi
nese laborers the privilege of their pass-
Ing through our territory cannot be safely
granted, and should al once be revoked. If
this privilege is continued ii will be i'm.
possible TO secure the efficient execution of
the laws passed by Congress for the exclu-
sion OF Chinese laborers."
On the subject of Pacific railroads the Sec
retary saws there are now outstandiuu ga