Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-02-25
CONDITION or THE TREASURY.

SECRETARY of the Tr~ssurv Poster Explains
to the Heoss Ways and Msaas COMMITTEES.
Secretary Foster Of the Treasury Department
was before the ways and means committee Of
the House for nearly two hours this morning
explaining the condition VI the treasury.
The hearing was conducted with closed
doors and all Newspaper men were excluded.
member Of the committee fearing tha, IL
the hearing were public the agitation OF the
financial question and possibly the publication
of sensational reports might give rise to
needless alarm. As might have been expected
however, the result OF closing the hearing ~as
to give rise TO more apprehension than would
probably have been the case IL the hearing had
been open and free.
The statement Of Secretary Foster WAS 10 the
enect that there was no occasion for fear Of .
bankrupt treasury, but he admitted that the
situation was one demanding serious consider
alton, and that his estimates Of the avail
able cash in the treasury at the close
OF the present fiscal year would need to be
scaled down 20 some extent Mr.. Foster
Thought there would be surplus in the tres
ury July l next OF nearly eli. 600 900. His esti-
mate in the report heretofore sent 90 the CON-
miftee on the condition Of the treasury fixed
the surplus at $20, O0o. COO
PROBABLE DEFICIT N 1894
The probabilities for the fiscal year 1894 were
that In the absence OF some change in the situ-
alton there would be q deficit in the treasury
on July I, 1894
Speaking OF the frequently repeated assertion
that the the treasury was now really bankrupt
Mr. Foster said in substance:
"once In while when large acquisitions
have come in on top OF each other and did
not want to pay them because we would
have TO put out gold, which might be rather low
at the time. we would potter along for day or
Two and then some fellow would say the treas
ury Ia bankrupt and all that sort OF thing"
The Secretary gave the distinct impression
that he did not coincide in the views expressed
in these statements
ALL STATEMENTS BASED ON PRESENT RATE On
TAXATION.
Mr.. Foster said that all his statements were
based on continuation Of the present rate OF
taxation. IL there were change OF course his
estimates would not stand. He thought
there might be a deficit in 1894 He be-
lieved that CSC, 000, 900 more revenue should
be raised and put into the treasury in order 20
make everything safe and the conditions favor
able for a proper administratio of the affairs
OF the government He offered no sugges-
ton as TO whether this amount should
be raised by a loan or by additional
taxation. IL he were to have been continued
in the Office Of Secretary of the Treasury be
would like to have ESQ 900. 900 added to the
balance, So. 600. 900 of which he would use 70
maintain the gold reserve. az he believed the
treasury would be the better for having
on hand sl25, 000. 600 OF gold or S25 900. 600 in
free gold The secretary said that there would
be no difficulty in getting plenty Of gold il he
had the money TO spare. Nothing said
about the cause OF the present exports Of gold
or the probabilities Of future gold shipments,
but Mr.. Foster said that he had expected its
outflow.
WHY THE SURPLUS rs REDUCED.
In explanation Of the reduction in his esti-
mated surplus FOR the close OF the current fiscal
year Mr.. Foster said that the payment
OF the Choctaw claim had not been estimated
when he placed the surplus at S20 O0O. COO
Its payment would take about $1,000 0OO
The receipts had also fallen somewhat below
his estimates, and at the close OF the fiscal year
would probably be less than be had estimated
A large part Of the time was consumed in ex-
plantations to the members OF the committee of
the system OF bookkeeping in the treasury, and
on this point Mr.. Miller. an expert
in the warrant division, supple
mented the statements of Secretary Foster.
The members Of the committee did not
clearly comprehend the mysteries of treasury
finance, and 1t was necessary to go over this
ground several times An explanation was
gone into of the change made in this
administration in the form Of debt and
treasury statements by which subsidiary coin
was included in statements Of cash balances
whereas in the Cleveland administration minor
coin was not SO included.