Daily Kennebec journal., 1894-12-05
CARLISLE'S REPORT.
Annual Report of Treasurer Of
the United States.
Secretary's Views at Length on Sub
ject Of Currency Reform.
His Ideas on How 10 improve Our National
Financial System.


year ended June 80, was presented tc
Congress, today. 1t treats in detail what
was only touched upon by the President
in his annual message to the financial
policy of the administration. Under the
head of Currency Reform, Secretary Car
Isle takes up the subject, which he treats
exhaustively. He premises it with the con-
dition of the treasury on the first day OF
the current fiscal year He says:
"On the first day of July last, the to-
tai cash in the treasury, excluding current
liabilities, but including gold reserve of
s64, 873, 024, was S1l6.6 22l and on the
first day of November, the total cash, ex-
cluding current liabilities, but including
SCI, 36l, s26 in gold, was S106, 992, 734, show
ing Il decrease of s9,633, ,4S7.
1.-The excess of expenditures over receipts
during the last fiscal year as 500, S03 26o,
and during the first five months of the
present fiscal year, s21, ,737, 367 90. 1t is
not believed, however, that this difference
between the receipts and expenditures will
continue in the same proportion until the
close of the year. and accordingly | have
estimated deficiency of $50, 200, 900 at
| that time.
"Owing to the large importations of raw
sugar in anticipation of the passage OF the
tariff act of August 2S, 1894, the duties
collected upon that article up to Decem-
Der amounted to only SO, OPP, coo, and Of
course nothing has yet been realized from
the tax on incomes, as its payment cannot
be legally enforced until after July |, 1895
| But there is reason to believe that the i'm
pOrtationS of sugar must be resumed at
an early date and continued upon scale
which will yield IA large revenue from that
source during the remainder of the year,
and it is probable also that on account of
the penalties which may be incurred for
non payment within 10 days after July |,
considerable part of the income tax will
be realized in time to be available.
'.As the reduced rates of duty on manu-
| features of wool will take effect on Jan
uary / 1895 the importations OF that class
of goods will doubtless be greatly increased
after that date, and consequently con
siderable addition to the revenue may be
reasonably anticipated from that source.
If the expectations should be to any CON
siderable extent disappointed, the year will
| close with greater deficiency than has
| been estimated.
s'My opinion is that the laws now in
force will yield an ample revenue for the fis-
cal year 1896, as all their provisions will
then be operative and the prospective
| improvement in the business of the coun-
try, if realized, will greatly increase the
resources from which taxes are collected,
and accordingly a surplus of S2S, S14, $50 is
estimated for that year
''In my last annual report, | called at
! tention to the unsatisfactory condition of
our financial legislation, and this especially
to the issue and redemption of circulating
notes by the government and the inability
of the secretary of the treasury under exist
ing laws, to make prompt and adequate
provision for the support of the public
credit. The experience of the past year has
confirmed and strengthened the opinions
then expressed, and therefore respectfully
but most earnestly urge upon Congress the
necessity for remedial legislation during
its present session.
"The well known defects in our finan
cial system and the serious nature of the
evil threatened by them, have done more
during the last two years to impair the
credit of the government and the people of
the United States at home and abroad and
to check our industrial and commercial
progress than all other things combined,
and our first and plainest duty is to pro
vide if possible, some effective method for
the prompt and permanent relief OF the
country from the consequences of the
present unwise policy.
"A brief statement of the practical and
unavoidable results of the existing legis
lation will demonstrate its injurious
effects upon our financial affairs more
clearly than any argument that could be
submitted.
The secretary then states that the gold
reserve held for redemption of United
States legal tender notes was reduced on
January II, 1891, to S69, 751, S24 and the
cash balance in the treasury, excluding
current liabilities, but including the gold
reserve and subsidiary and minor coin,
was SS3. 961, 402. The current ordinary
government expenses Were and for some
time had been, considerably in excess Of
the current receipts, and it was impossible
TO procure gold for the reserve without
the sale of bonds. under the authority con
/ ferred by the resumption act. Accord
ingly. $50, 900, 600 of bonds We're sold for
SIS. $50. 9l7 63. no bid having been accepted
which would yield the purchaser more
than 3 per cent upon his investment
On March 6. 1894, the free gold in the
treasury amounted to s107 446, 500, the
highest point reached since March %.
1923. The lowest point reached by the
reserve since the resumption of specie pay
ments was on Angus Z, 1894, when it
was reduced to s5a, ls9, 500. After that
date. it was slowly replenished by ex
changes of god coin for United States
notes by the banks, and by small receipts
of gold in payment of dues to the govern
ment. until on November Il, 1894, it
rose to SOL, S7S, 314.
In the meantime, however, the secretary
continues, the frequent presentation OF
notes foe redemption in gold indicated the
existence of feeling of uneasiness in the
public mind. while foreign exchange was
almost constantly at or near rate which
made it more profitable TO export gold
than to purchase bills. Consequently
Withdrawals for shipments were daily
threatened. Moreover, the vast accumula-
/ ton of money at our financial centers and
the general depression of business had 50
j reduced the rates of discount that the in