The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-03-08
Foster Says the Government II
Down to Bedrock, Almost
Broke.
A Deficiency Of e3O,OOO,OoO Il Almost
Inevitable At tho Close Of the Els.
cal Year 1894.

sary to choose between issuing bonds and
erenohing upon the gold reserve" The ex-
secretary said the department has now
practically no gold reserve. there being less
than 81. 00000 in FREQ gold. He did not re-
gard the situation a. alarming, however. 90
all the excitsment about gold shipments ap.
reared to have subsidized. 1t was he said, a
better condition than he expeoted to find at
this time. and did not look as alarming as
1t did week or moro ago. When asked IL
he did not think bonds would have
to be issued. he replied that Carlisle
might. instead of that, use some
OF the reserve. He said Carlisle
undoubtedly had the right to use part of
the gold reserve il he nesdcd to do SO. Be-
sides the gold reserve, Foster said, he
would turn over to the new secretary about
$29. 100000. consisting Of the national bank
reserve and subsidiary coins and disbursinp
officers balances. Against this are out
standing drafts. covering most of II, but not
liable to be presented for payment ut once
"ConRress.' he said. ''should have in.
| creased the whisky tax 30 conts and given
Us chance to replenish our stock of money.
The fact ia. the demand for gold ia per
fectly regular; it is not speculative, 1t ia
need Of gold"
The only thing artificial or speculative in
| the situation. he thought. was the effort
made to keep gold here. That, of course.
was to keep the market steady. and not to
is nearly $500. .OOO. 600 in gold in the country.
the public mind 10 com parstively easy, and
! have no doubt Carlisle will be able TO nut
himself in position to meet all demands for
gold"
Majority and minority reports of the
committee on ways and means on investiQa-
tion of the condition of the treasury, are
completed and sent to the printer.
Springer. who prepared the majority re-
port says, assuming the statements made
by Secretary Foster to be correct. June 80
next, there will be an estimated cash bal
ance of $40. 992, ,977 over and above the gold
reserve. This estimated balance is proba-
bly, too large. The available balance will
\ be reduced by the ayment of the Chootaw
claims, 1900, 600, and also by any unesti-
mated and Extraordinary expenditures, and
by any failure of estimated receipts during
the time indicated.
The majority is of opinion that ut the
close of the fiscal year there will be an
available cash balance in the treasury aside
from the gold reserve. of not over $l7.OOO-
0Oo: AS to 1894. Springer says the secretary
estimated the available oash balance at
$47, ,757, ,4O2. but note at the bottom of the
treasurer's statement shows this balance
chargeabls with contract liabilities. al
ready appropriated for. amounting to $40
| OOO.OOO 1t is impossible that all this amount
will be called for during that fiscal year.
but this amount is estimated by the depart
ment.
Under the most careful estimates that
can now be made. it is apparent, says the
report that Mt the end of she ensuing fiscal
year there will be q deficiency amounting
to from $50, 0O0.0 600 to SAC. .Oo0.0O In these
calculations no account whatever is taken
OF the requirements of tho sinking fund.
Tho balance due the sinking fund in 1892
| was $11 ,307, 1926. The reuuirsments for 1899
are estimated at $4S, ,693, 900. and at the end
of the next fiscal year there will be duo the
fund a little over 300 0O0,000
In conclusion. the majority cite Heoretarv
FOSTERS statement that in his opinion there
would be deficit at the end OF the fiscal
year 1894, and that the receipts of the gov
eminent should be increased at once by
S5O OOOO.OOe to meet treasury conditions as
sst forth in his report. and increase the
gold reserve fund by $25.OOO,OOO.
The minority repors was drafted by Rep
resentative Payne, of New York, and was
signed by all the republican members of
the com mmittee. 1t says the conclusions of
the majority. from the evidence pre- sented,
seem wholly unvarranted and misleading.
In TACT there seems to be utter lack OF owl
dence to justify any of the criticisms of the
majority upon the statement of the secre-
tary, which showed surplus in the treas.
ury June 80, 1884," The statements of tho
secretary. supplemented by evidence of
treasury exports, evidently of most con-
servative character. estimated the receipts
placed ~ minimum. while the estimated
expenditures are placed at maximum.
Speaking of the deduction Of the Choosaw
claim the minority say the ma jorisy is very
swift to charge this $3 100000 against the
estimated balance for 1893, but nowhere
to deduct 1t from the estimated pay yments
for 1894. in which year the secretary esti-
mated it would be paid.
The majority are correct in cha QinQ CON-
tract liabilities for 1884, SAC. 600. coo, against
an apparent balance of $47.000.000. which
Ia stated in foot note by the secretary. II
doss not belisve this $40. 600 900 will all be
paid during 1894. and he had no doubt but
that the condition of the treasury will be
relieved to q considerable extent by a re-
duotion in payments on tho contract ao-
counts. The majority would also charge in
addition SIG. 115 750 TOR rivers and harbors,
but this IL already charged once in tho
sundry civil bill. Moreover IL carries only
S14, 166. 153 for rivers and harbors. The
minority next attack the mode OF averag-
ing deficiencies adopted by tho mniority %
grossly misleading. for tho reason that
there is such Rteat variation that there can
bc no average. The average miscellaneous
appropriations arrived at by the ma iority |
was also attacked. On the basis of the |
statement of the secretary of the treasury |
it would seem that the amount either OF |
surplus or deficiency in the treasury June !
80. 1894. would be very small.
Revenues from customs on the basis of |
the percentage OF increase each year ought |
to DO larger than estimated by $11, ,000, 900. |
Certainly there 10 no Justification whatever
for tho majority'a deficiency estimated at
the close OF 1894 of $30 900. 600 to $40. .000.-
600.
The remarks OF tho ma iority relative to tho
sinking fund are commented on as follows:
This credit could not be made TO that
0ind from current revenues this year with
out increasing our taxation sufficiently to
retire Sb0. 600 bonds per annum. DO
the majority of the committee advocate
any such scheme? Otherwise why do they
bring the matter into the report for they
certainly knew that prior to July l. 1891.
the requirements OF ihis act we're antioi-
pated by nearly $1,000 100000
In conclusion tho minority ssyN 1--WE