The herald., 1893-12-21
The Condition and Needs OF
the Treasury.
Various recommendations Made tC
Congress.
A Bond Issue Favored as n Means OF
Replenishing the Government
Ooffers-How to Raise
Revenues.

shows that during the first FIVE months
of the present fiscal year the expendi-
lures OF the government exceed the re-
ceipts by $29. 9.9lS.095. This was brought
about by decrease in receipts and in
crease In expenditures. Compared with
the corresponding months of lsst year
the customs revenues fell off $23, 5S9, 1929 !;
internal taxes, $7,S66. .667. The expend-
itures in the war department in the ex-
ecution OF contracts made last fiscal
year, increased S. 1852, 1872. The navy
expenditures for the came reason in
creased 81 .9l2. .2S9, with other minor in
cresses. There have been reductions
in other branches of the public service
of Sc. .352. .206
December 1st the net balance in the
treasury was only s1l,03S.44S. Oi the
total amount held $l2,317 ,5l7 was in
subsidiary silver and minor coins.
The secretary assumes that the worst
effect OF recent financial disturbances
and business depression are past, and
that the remainder of the year will show
better results, and he estimates the de
J fciency at the close OF the year at
$2S 600, ,000 TO meet this he rec.
ommends an amendment of the
specie payment resumption act of
1875, to authorize him to sell
per cent bonds, not exceeding $780,
600, 900 in amount, at not less than par,
saying. however, that in his opinion only
great financial emergencies justify such
course. He suggests that bonds be
issued In denominations of $25 and null
tiples thereof, to be sold through the
Hub-treasuries and postofiicee. In case
I f-l htu
course, he recommends that the secre-
tary be empowered to execute obliga.
tiODs of the government not to exceed
50,00O,000, bearing 8 per cent,
to be sold or circulated in
payment of government obligations. He
urges prompt action to prevent the seri-
ous impairment OF the public service,
the payment of pensions, etc.
He points out the necessity OF the ex-
tension of the power of the secretary to
maintain a larger reserve for the re-
demption of United States currency,
showing that at the date of the resump-
tion OF specie payments legal tender
notes subject to redemption were out
standing only to the amount of
$346, ,016. At the present time these
obligations have increased to $499, 1890, ,240
direct obligation, besides the require
ment to preserve the parity between
gold and silver on $40, 1882, 800 legal
tender silver. on which 1884, l33, ,504 in
silver certificates has been issued. To
emphasize this he speaks of the heavy
exports of gold during the current year.
which finally, in spite OF all effort. car
ried the gold reserve to nearly SIC. 900, 900
below the legal requirements, the lowest
point ever reached since the resumption
OF specie payments.
of keeping it's own notes outstanding,
10 circulate as currency, and under
takes to provide for their redemption
in coin on presentation, 1t will be, In
nv opinion, essential for the secretary
OF the treasury to possess means TO meet
euch emergencies as the one wnlcn re.
Gently occurred in our financial AFFAIRS.
He eays the repeal OF the silver pur-
chase act makes such radical change
in the currency policy of the govern
ment that until it's effects have more
fullv developed he does not consider 1t
advisable to recommend further specific
legislation on that subject.
| He SAWS the great increase in bank re-
eeryes in monetary centers OF the coun-
trv. shows conclusively that the amount
of money in the country ia greater than
ie required for the transaction OF buel-
nees.
He finds that one of the principal
difficulties of the treaeury result from the
indisposition OF the public to retain
silver dollars and silver certificates
in circulation. He says he cannot un-
derstand why this should be the case,
and has sought to remedy it by increas,
ing the number OF silver certlhcates OF
&C lar har
the larger ones and substituting for
tbem larger notes Of other kinds of cur
rency. -,
The report then deals at length with
the tariff laws. He argues in favor OF
direct ad valorem duties; declares that
the inducements to commit frauds and
psriuries are much greater under the
system of compound rates than under
ad yalorem. 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, are $454, ,427, ,748; expenditures,
s44S. .3O3, ,789. The secretary estimates
the revenues from custems at $780, ,000,-
600. If importations in the fiscal year
189b should not exceed those of 1898.
the receipts under the pending tariff
hill will be l22,O00,000, but the sec
retarv believes the proposed reduc-
tions will increase importations and
thinks, with economy, an increase OF
SIS 900 900 in internal revenue will sup
ply the necessary funds for the govern
ment. To this end he recommends a tax
of 10 cents per gallon on distilled spirits
and additional taxes on cigars and ciga-
rettes. and new taxes on playing cards,
cosmetics, periumeries, legacies, success
sione. incomes from stocks and bonds
OF corporations and joint stock conpa.
MES.
The secretary ssys much difficulty has
been experienced by the officers charged
with the duty of assisting to enforce the
Chinese exclusion laws. by reason o.
certain practices resorted to by Chinese
coolies. 81 am of the opinion that sc
long az our laws prohibit the landing o
Chinese laborers, the privilege OF passing
through our territory cannot be safely
granted, and should at once be revoked
If this privilege is continued il will b'
impossible to secure efficient execution
of the laws passed by congress for th'
exclusion Of Chinese laborers."
, On the subject of Pacific railroads
the secretary Gays there are now out
: standing $64, ,623, 512 & per cent Unite'
States bonds, issued in aid OF the Pacih
railroads January 16, 1896; that w,
: 362, 900 of these bonds are mature, AM