Weekly expositor. (Brockway Centre, Mich.) 1882-1894, 1893-12-29
TO ISSUE SIS us. BONDS
SECRETARY CARLISLE HAS a
NEW IDEA ON BONDS.
Would Have Them 3 per cents and Sell
Them Direct to the reople-Sum-
mary of His Anrual Report.

Secretary of the Treasury Carlisle
has issued his annual report. During
the last five months of the fiscal year,
compared with last year, receipts have
diminished as follows: Customs reve-
nue., 1850, 800; internal taxes, ST.
! $50, G67; miscellaneous, 1924, l52. EX-
penditures on contracts have increased
| SS,770, $40. Reductions in other de-
! partments amount to So, $50. 206. The
deficit for the five months is S29,0lS,
095 The net balance in the treasury,
exclusive of the geld reserve and some
| other funds, was only Sll, OBS, 44S, and
of the total cash on hand Sl2, 347,5l7
was in subsidiary silver and minor
coins
The deficit for the year is placed at
| S2S, 900, 600. To cover this and any de-
ficits in 1894 and 1895, Secretary Car
! isle recommends that the law of 1875
| be amended so as To authorize him to
| sell at not less than par in coin bonds
| to an amount not exceeding 5000, OOO,-
| 900, bearing lower rate ofinterest and
| having a shorter time To run than
| those now provided for. ''ln the pres
! ent condition of the public credit,
! nothing less than the existence OF a
! great and pressing financial emergency
would, in my opinion, justify
| the Issue and sale of any of
the three classes of bonds which
the law of 1875 permits me to issue.
| Whatever may have been their merits
nearly quarter of Il century ago,
when the credit Of the government
was impaired, our financial standing is
| now so high that such bonds would
| have to be sold at Il premium so great
as TO prevent people OF ordinary means
! from buying them. And 1T is evident
! that a bond, bearing interest at the
rate of 3 per cent, payable quarterly
and redeemable at the option of the
government after five years, could be
| readily sold al par in our own country.
IF | am authorized to issue the
| bonds in denominations of $25 and its
! multiples, they could be readily dis
posed of through the sub-treasuries
and postollices, without the agency or
Intervention of banks or other financial
! institutions, and without the payment
| of commissions. Such bonds would
afford TO the people at large an oppor-
| tunity to convert their surplus earn
] ings into valuable and convenient
! form of security.
I'm case congress should not accept
my suggestion, | recommend that the
secretary be empowered TO execute
from time 10 time, as may be necessary,
the obligations of the government, not
exceeding in the aggregate $50, 100000,
bearing "a rate OF interest not greater
than per cent and payable about one
wear from date, and be permitted to
sell or use them at not less than par in
the payment of public expenses to such
creditors as may be willing TO receive
them"
On the subject of the 500, 600, 900
gold reserve Secretary Carlisle says the
amount is inadequate and that the
secretary should be clothed with au-
thority to procure and maintain an
ample reserve, ana that the purpose of
the reserve be made comprehensive.
Silver. The secretary says that he
can recommend no specific legislation
on the silver question until the effect
of the sherman act repeal becomes APP
parent. lie refers to the enormous ac-
cumulation of currency in the banks,
which on Dec. /, 1898, was Sll2, 404, 947,
greater than on Nov. !, 1892. 1t is due
largely to the late financial stripgency
and the fact that there is no demand
for money for investment. Money
does not create business, but business
creates demand for money, and until
! there is such a revival of industry
trade as to require the use of the circu-
| lating medium now outstanding, it
would be hazardous to arbitrarily IN
crease its volume by law, or TO make
material charges in its character"
The treasury now holds 40, 600, 760
fine ounces of silver costing Sl26, 1884,
2lS, and which will make 1871, 9l4, 500
silver dollars. The coinage of the
whole amount or this bullion, which
would employ our minis, with their
present capacities, for period of about
five years, would, at the existing ratio,
increase the silver circulation during
the time named $50, $50, 6Sl from seign-
forage, besides such additions as
might be made in the meantime by the
redemption of the treasury notes in
standard silver dollars.
The secretary figures that under the
Wilson bill there will appear by
present estimates an annual deficiency
of S62. 0O0, 900; but he feels confident
that increased imports and economic
government would reduce the de-
ticiency to $50, 900, 900. This, he thinks,
can be most conveniently and justly
raised by increasing the tax on dis
titled spirits 10 cents per gallon, and
by additional taxes on cigars and
cigarettes, and the imposition of new
taxes on playing cards, cosmetics and
perfumeries, legacies and SUGGESTIONS,
and incomes derived from investments
in stocks and bonds of corporations
and JOINT stock companies. lie disap-
proves of personal income tax, saying
that the valuable privileges enjoyed by
stock companies, over and above those
allowed to individuals, amply justify
an extra tax upon the stakeholder.
Foreign commerce. Imports for 1892:
Merchandise, 1927, 400, 462; gold, $49,-
900, 454 silver, $40, 955, 0s6. Exports,
merchandise, 81, 030, 97s, 145; gold, $780,
1876, 327; silver, S32, $40, $50.
Imports for 1898: Merchandise, $780,
400, 902; gold, S21, ia, 3sl; silver, $685.
1913, 252. Exports, merchandise, Ss47,.
Cos, 1914; gold, Sl0S, $50, 900; silver, S40,-
737. $40. Only 1919 per cent of imports
were carried by American vessels. A
decrease in the number of customs
I Il al, 4..I