The evening world., 1893-12-20
Argument for AID Valorem
Rather Than Specific
Tariff Rates.
INCOME TAXES ARE DISCUSSED.
Invested Capital Often Escapes
Sharing the Public
Burdens.

WASHINGTON. Dec. 20.-The annual
report of Secretary Carlisle was sent to
both Houses Of Congress to-day. The
document is a very thorough and ey-
haustive review of the condition OF the
Governments finances and contains va
rious recommendations for the relief of
the Treasury.
After telling OF the years expenditures
In the various departments, the Secre-
tary reports that on Dec. 1, 1893. the
actual net balance in the Treasury, after
deducting the bank-note 8 per cent.
redemption fund. outstanding drafts and
checks. disbursing officers balances,
agency accounts and the gold reserve,
was only 81, 03S, AS. 25, and Of the total
amount held / 2,3i7, 517.sO was in subsid-
larry SILVER and minor coins. The Secre-
tary says:
WORST MONEY TROUBLE OVER.
II may be safely assumed that the worst effects
Of the recent financial disturbances and Consequent
business depression have been realized and That
the condition will be much more favorable here
after for the collection OF an adequate revenue for
the support OF the Government: hui Il can SCARCELY
be expected that the receipts during the remainder
OF the fiscal year will exceed the expenditures for
me sImr TINE to such an extent as to prevent .
very considerable deficiency.
DEFICIENCY OF SOS. 900. 900.
have, therefore, estimated a probable deficiency
OF S2S, 900. 900 at the close OF the year. and II Com
gress concurs in this view Of the situation. II will
~" incumbent upon 1t TO make some provision for
raising that amount as soon as practicable, by
taxation or otherwise.
RECOMMENDING BoND ISSUES.
On account OF the difficulty OF securing such 4
sum within the time It will be required by tia
imposition and collection OF additional taxes. I
comm that the third section OF the act to
provide Tor the resumption Of specie payments. APP
proved Jan. II, 1875. which confers authority
upon IN. Secretary OF the Treasury to Issue and
be 50 amended as TO authorize him to Issue and
sell, al not less than par In coin. bonds to an
lower rate OF interest and having a shorter time
u run than those now provided for, and that he
be permitted to use from time to time such part
Of the proceeds as may be necessary to supply
any deficiencies in the public revenue that may
occur during the fiscal year 1894 and 1895.
in denominations OF ss and maitioles thereof
could be readily disposed OF through the sub
treasures aud post-onices without the agency
or Intervention u banks or other financial insti-
lions and without the payment of commissions
HONpS AS POPULAR INVESTMENTS.
Such bonds would AFFORD to the people at large
an opportunity TO convert their surplus earnings
into a form of security which. while It would
be perfectly safe. would not only increase In value
by reason Of accumulating interest. but be at
an times available as a means OF procuring
money when needed; and the experience OF this
and other countries ~justIfcs the confident belief
that such u plan would be popular and success
tuI.
If NOT BONDS, OBLIGATIONS.
In rase Congress should not consider 1t advisable
10 authorize the Secretary 10 use for the purpose
Of supplying deficiencies IN the revenues any part
Of the proceeds OF the bonds herein suggested. L
~ecommeni that he be empowered to execute from
time TO time. as may be necessary. the obligations
" the Government, not exceeding In the aggregate
nifty million dollars. bearing a rate OF Interest not
greater than 3 per cent. and payable after ons
year from date, and that he be permitted TO sell
Them AZ not less than nar, or use them at not Iea~
than par, in the payment Of public expenses. 70
such creditors as may he willing to receive them.
RE rordition OF the Treasury is such that unless
ERUa a "a Ntla means ara nRnnnflV avid Ia - a
Law for supplying the growing deficiency. the pub. :
lie service viii be seriously impaired, and pen,
sioners and other creditors subjected 10 great delay
and Inconvenience.
THE GOLD RESERVE.
The necessity of maintaining the gold
reserve OF 800, 0OO, 900 Is pointed out, and
a history of the reserves recent %tiuctua-
lions given, with a plea for the fuller
authority Of the Secretary regarding
ways and means of preserving the fund.
The report says:
While the laws have imposed upon the Treasury
Department all the duties and responsibilities Of
a bank ~ issue, and q a certain extent the func-
rous u a bank OF deposit. they have not con
far~Cl upon the Secretary any part OF the dis
rrNtlonNry powers usually possessed by the ex-
c,gttye heads OF Institutions engaged In conduct
iUg this character OF financial business. .
lie ,au neither negotiate temporary loans 70
meet casual deficiencies nor retire and cancel the
notes VI the Government without substituting
other currency for them when the revenues are re-
dundGnt or their circulation excessive. r
nor can he resort, except to a very limited ex-
tcnt. L. any Of the eNped'ents which in his judg-
mon' may be absolutely necessary to prevent in
furious disturbance of the financial situation.
CURRENCY LEGISLATION.
As to currency legislation the Secre-
taTy says:
The recent repeal OF 50 much OF the act OF July
IA. 1880, as required the Secretary Of the Treas
urv To- pur,h Hsr silve~ bullion and issue Treasury
notes in payment for Il, makes such a radical
change In the policy of the Government respecting
tho currency Of the country that until It's effects
ore more fully developed | do not consider II sd,
visible 10 ~erommeR further specific legislation
upnn that subject.
Auney does Iot create business. hut business
creates u demand for money. aud until there 10
such a revival Of Industry end trade as 10 requins
the use OF the circulation medium nov outstAnd-
ing Il would be hazardous TO arbitrarily Increase
is volume ~ Law or 10 make material chansss