The record-union., 1893-12-21
Special to the REcoRD-UN1ox.

Special to the RECORD-UNIoN.
WASHINGTON, Dec. 20.-The annual re-
port of Secretary of the Treasury Car
Isle 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
by S29,9l8, ,095. This was brought about
by a decrease in the receipts and an in
crease in the expenditures as compared
with the corresponding months OF last
year.
The customs revenues fell off S23, ,5S9, ,S29
and the internal taxes. 81, ,866,667. The
expenditures in the War Department IN
the execution of contracts made IN the
last fiscal year increased So, 162, ,l32, and in
the Navy Department for the same
reason, 81, ,9l2, $50, with other minor IN
creases. There have been reductions in
other branches of the public service Oh
Sc, ,352, 206
On December 1st, the net balance in the
treasury was only $l1 ,03S, AS. OF the
total amount held Sl2, 81, ,5l7 was IN sub
sidiary silver and minor coins.
The Secretary assumes that the worst
effect of the recent financial disturbances
the remainder of the year will show
better results, and he estimates the de-
ficiency at the close of the year at S2S,-
100000.
10 meet this he recommends an amend
ment OF the specie payments Resumption
Act of 1875, to authorize him to sell
ee-per-cent bonds not exceeding $780,
G00,000 in amount, at not less than par.
He says, however, in his Opining, that
only a great pressing financial emergency
justities such q course.
He suggests that the bonds be issued in
denominations OF SO and the multiples
thereof, to be sold through the subtreas-
uries and postoffices. In case that Con-
eress should decline to follow this course
he recommends that the Secretary be
empowered to execute obligations OF the
Government not to exceed S50,O00,000,
bearing per cent, TO be sold Or circu-
lated in payment of Government Obliga-
tions.
He urges prompt action to prevent the
serious impairment of public service, pay
nent of pensions, etc. He points out the
necessity of an extension OF the power OF
the Secretary to maintain a larger reserve
for the redemption of United States cur
rency, showing that at the date OF the re-
sumption of specie payment the legal
tender notes subject to redemption and
outstanding amounted to $346, ,6Sl ,0l6. Now
these obligations have increased to $780,
900. 240. In addition there is the require
ment to preserve the parity between gold
and silver on S4l9, ,332, 800 legal tender sill
yer. Oh which 1894, l3S,504 in silver GER
tificates have been issued. To emphasize
this. he speaks of the heavy exports of
cold during the current calendar year.
which finally, in spite of all effort, car
ried the gold reserve to nearly S20,00O,00O
below legal requirements, the lowest
point ever reached since the resumption
| of specie payments,
Tie Secretary adds: 'As long as the
Government continues the unwise policy
of keeping its own notes outstanding to
circulate as currency and undertakes to
| provide for their redemption In coin on
presentation, it will be, in my opinion,
! essential for the Secretary OF the Treas
urv to possess the means to meet such
| emergencies as the one which recently
| occurred in our financial affairs"
| He says that the repeal of the Silver
| Purchase Act makes such q radical
change in the currency policy of the Gov
ernment that until its effects are more
! fully developed he does not consider it
! advisable to recommend further specific
legislation on that subject He says that
| the great increase in the bank reserve in
! the monetary centerS OF the country show
! conclusively that the amount of money
in the country is greater than is required
| 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 clrcuIa-
! ton, He says he cannot understand why
this should be the case and has sought to
remedy it by increasing the number OF
silver certificates of denominations less
than $40, retiring the larger ones and sub
/ fort la Of nfh hof
| kinds of currency.s
The report then deals at length with the
| tariff laws. He argues in favor of ad
yalorem duties, and declares that the in
! ducements to commit frauds and per-
! iuries are much greater under the system
| of compound rates, as at present, than
under the ad valorem system. He also
urges strongly the desirability of free raw
materials.
| The estimated revenues for the fiscal
wear 1895, on the basis of the existing
| laws. is S454, Az, ,746, and the expenditures
| S448. 303. .7S9 The estimated revenues from
! customs is S190, 900. If the importa-
! tions of the fiscal year 1898 should not eX-
j ceed those of 1898 the receipts under the
| pending tariff bill will be SID 100000 but
! the Secretary believes that the proposed
| reductions will increase the importationS,
! and he thinks that with economy and an
/ increase of 100000 in the internal
revenue this viii supply the necessary
funds for the Government.
/ To this end he recommends an increase
/ of ten cents per gallon on distilled spirits,
! and additional taxes on cigars and cigar
! cites, and new taxes on playing cards,
/ cosmetics, perfumeries, legacies, success
! ions, incomes from the stocks and bonds
/ of corporations and joint stock COM
/ panies.
The Secretary says that much difficulty
! mas been experienced by the officers
/ charged with the duty of assisting in the
enforcement of the Chinese exclusion
/ laws by reason of certain practices re-
sorted to by the Chinese coolie.
| 81 am of the opinion" he says, ''that as
/ long as our laws prohibit the landing of
I Chinese Iaborers the privileges of passing
/ through our territory cannot be safely
granted and should at once be revoked.
/ If this privilege is continued it will be
1 impossible TO secure the efficient eXecu-
/ ton of the laws passed by Congress for
the exclusion of Chinese laborers."
ON the subject of Pacific railroads, the
/ Secretary says there are now outstanding
S64, ,623, ,5l2 six per cent. United States
| bonds issued in aid of Pacific railroads.
| on January 16, 1895, S2.362, 600 of these
/ bonds mature, and others mature at
various dates to January l, 1892
/ He adds: "These bonds are absolutely
payable on the respective dates of their
maturity, differing in this regard from
I other outstanding interest bearing bonds
of the United States, which are redeem
able at the pleasure of the Government
after certain dates. In view of this fact,
] it is important that Congress should take