Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1893-01-12


Expenditures
e'v expenses ........ c2.in9mO el7,5l1,OoO
Pc siuns.............. 209it,OUl i7b!fihh
rny''..........."... 95i9Un s.h5iWn
NHNy.........., $50, ., iihupD i,sib,HM
Interest on debt.."... 4bIG,WOO S,gIhOOO
--------=---- -
e6aOOj,OOO e5J.4OO,OOO
Local requirements for
sinking iuhu' Asl|,OVO HS6S'W
f5s,si7Oon cd5,a6aOOO
surplus ................. Gll,iis,O3O
Doiirit .....,.......,....,e7 ,sea,000
In 1889, after making full provision
for the legal requirements of the sinking
fund, there was left surplus Of Eli, 4is,-
$40, whereas last year the revenue fell
short by ", S19, 900 Of the amount required
to cover the expenditure and make the
statutory provision for the sinking fund.
Secretary Foster seeks to avoid the open
confession of a deficit by arguing that as
more money has been applied to the re-
duction of debt since tho act OF 1852 con
stituting the sinking fund was passed than
was required by the terms of the act
therefore its provisions may now be
ignored. "rhe conditions which called
for its enactment he writes, "have long
sincG passed away, and no valid reason for
its continuance any longer exists. there
furo recommend its unconditional repeal"
But whether the act ought to be rcitealcd
or not, the iac5 remains that ii is still in
force, and that under the Harrison Adj
ministration he treasury has been reduced
to such financial straits, mainly by Il lavish
increase Of expenditure, that it cannot
meet its legal obligations.
And II the fiscal achievements of the
Republican party are not to their credit,
still more unsatisfactory have been their
dealings with the currency. of the effect
of tho Sherman act, under which the
treasury has been compelled to purchase
45JO. 900 ounces of silver every month,
Secretary Foster has Il good deal to say.
| He admits to begin with, that under the
existing law the treasury is bound to hold
| a reserve of U,OOUUl0 of gold, against the
| 100000 or so of United states notes in
| circulation. And over and above that, II
| ought to hold sufficient quantity of gold
| to guarantee that it will be able to pay
gold on demand for the notes which the
| treasury issues in payment of its PURCHASES
| of silver. These notes are nominally re-
| deemable either in silver or gold, but"
writes Mr.. Foster, 'slnce 1t has been de-
| clared to be the established policy Of the
| United States to maintain the two metals
silver and gold, on a parity with each
| other" il ], necessary that the treasury
should be able to pay gold for them ii re-
| quired, as otherwise the parity between
|
But while these obligations rest upon the
treasury, Secretary Foster is not sure that
| ii things are left AS they are it Will be BILE
to fulfil either of them, As TO the oblga-
ton to hold reserve OF R2O, 100. ono against
the greenbacks, he writes; when the
demand comes for the expectation OF gold,
| the treasury is called upon to furnish
it. If this demand should prove to he
| as large i'll the coming year as il
has been for the past two years,
gold in the treasury would be diminished
| to or below the reserve line In that
case, there would be absolutely no gold
held against the "egI, 00O, 900 OF the treas
ury notes authorized by the act Of July
18th, 1890, 4 to which we are add
ing about -four millions lof dollars each
month in payment Of silver bullion pur-
chased. Practically, therefore, Secretary
| Foster argues that If things are left to 20
on a5 at present il is doubtful whether the
United States will be able to maintain gold
payments, and he thinks it right to offer n
piece OF advice to his successor. "ln view,''
he says, "Of these Increased and increasing
liabilities, the reserve in the treasury for
the redemption of the government Ubliga
tions should, in my opinion, be increased
to the extent OF at least 20 per cent on the
amount of the treasury notes issued and 10
be issued under the act of July 18th, $780,
u would be interesting to know why,
holding this opinion, MIR. Foster has never
sought to do anything to give effect to it,
and been content to wait until his party
has been dismissed from Office before
enunciating it, but. however that may be
his advice is not likely to be acted upon
II Is much more probable that the treasury
purchases Of silver Will be discontinued
for If that were done, what las been tn,
main influence IN driving gold out of thu
country would be removed and Il com
|
stock of gold would be sufficient for its re
Vtlirements.
\ good deal Of space in the report is dc
voted to an exposition of the results o
the reciprocity treaties which the Unitet
states have entered into with certain
foreign countries. Secretary Foster claim
that the predictions of the friends of thi
new reciprocity policy have been Target,
verified, and that there has been a CRAFTY
lug increase in our commerce with lhest
countries, both i'll imports and exports.
And i'll support of tins he produces sta
tistics which show that the imports Of Tia
! United States from those countries in
, creased from So, 021 900 in 1891 to $50, 7SS,
90 in 1892, growth of SIG, $50 900, Will
, the exports Of the United states to thus
I, countries rose In the same period iron
g Els,3BI,OOO to I22,52l,UUU, an increase o
Z ~, 10000. We had thought, however
that the object OF the proteclunist policy
OF which those reciprocity treaties form
part, was to discourage imports and I
stimulate EXPORTS and cannot, there
h fore, understand why the reativel
large increase that has taken plaC
a ia the imports should be regarde
y AS an indication OF the success Of TIT
4 policy. secretary Foster does yentuI
: upon an explanation of the apparef
n anomaly. speaking of the large incren.
Z in the imports from Brazil and Cuba, Il
/. SAYS "N bile there is large disparit
p between the increase in the value of OF
!, imports aud exports, it should be remen
q bercd that our imports from these Amer
n can countries are of articles which "
i must necessarily purchase from them
4 any event, as they are articles Of ncccssit
v which are but to q small extent, il at al
ii produced in this country, and not to |
:. procured elsewhere than in southern cou
+ tricS In effect, then, Mr.. Foster mai
70 tain shat Brazil and Cuba have game
4. nothing by the treaties, and have been b
n Euilei into making tariff concessions
the states, for which they obtain no I
If turn. That is probably true enough, b
- why Secretary Foster has thought it e
pedient to Lell the Brazilian and Cubs
governments that they have been owe
rrnFftpH II ia litIi,,,tIt 90,