The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1894-01-27
ASSETS
THE GOLD RESERVE.

II will appear from this statement that the
gold reserve has been reduced to sT4, l0s, 1i9.
and it is evident from the condition OF the
treasury that the department will have no
means to defray the ordinary expenses OF the
government unless a large part OF the pay
ments are hereafter made out OF that fund. II
this is done the reserve will be reduced by the
list OF February TO about s66, COL SCI. a sum
wholly inadequate for the purpose for which 1t
was created. On account OF this critical con-
dition OF the treasury / have considered it my
duty. in addition TO the earnest recommends
tions contained in my annual report, to appear
twice before your committee, and after full ex-
PLANTATION, of the situation urge prompt legisla-
tive action on this subject
With the permission OF the committee I have
prepared and presented for its consideration a
bill which. IL promptly passed. would, in my
opinion, meet all the requirements Of the situa-
tion by providing the necessary means for de-
frnying the public expenses and replenishing
the coin reserve to such an extent as TO assure
the maintenance OF the parity of all forms OF
United States currency. While this proposed
measure of relief has not yet been disposed Of
or considered by the committee, the great DIFF
ferences of opinion which are known to exist
in both branches of congress concerning the
Fropsiety Of granting additional or amended
authority to issue bonds in aHy form, or for any
purpose, render IL doubtful whether new legis-
lation upon the subject can be secured in time
to provide the means which are imperatively
demanded in order TO preserve the credit and
honor OF the government
WILL ISSUE
Authority to issue and sell bonds for the pur-
pose Of maintaining specie payments was ex
pressly conferred upon the secretary Of the
treasury by the act Of January IA. 1873, but II
has not been exercised since 1873, and on &C.
count of The high rate OF interest provided for.
and the l. ngth of time such bonds would have
to run, l have not teen satisfied that such an
emergency has heretofore existed as would
clearly justify their issue.
But the necessity for relief ut this time is SO
urgent, and the prospect OF material improve
mens in the financial condition OF the govern
ment is so problematical that unless authority
to issue and sell shorter bonds other obligations
Tearing lower rate OF interest than that speci-
fed In the existing law is granted by congress
at a very early day, 1 shall feel constrained by
a sense OF public duty to exercise the power
already conferred, 10 the extent at least OF pro-
ducing an adequate coin reserve.
II this action should b, taken. congress
ought. nevertheless. TO provide promptly for
the deficiency in tie revenues during the cur
rent fiscal year, and / will. from time to time,
advise your committee of the condition Of the
treasury in order that this subject may receive
due consideration. I have the honor to be,
YOURS very respectfully.
J. G. CARLISLE. Secretary.
EXEMPT FROM TAXATION.
Section 3,U71 OF the Revised Statutes pro-
vides that all stocks, bonds. treasury notes
and other obligations Of the United States
shall be exempt from taxation by or under
state or municipal or local authority"
On account Of this general statute il was not
proposed in the hill which the secretary OF the
treasury laid before the senate finance COM
mittee in the early part Of last week TO make
any provision concerning the taxation OF the
bonds which he is asking congress to authorize
him TO issue
The house OF representatives, by q rule
some time ago, has dedicated all
It's time until the seth OF the present month
70 the consideration OF the Wilson tariff
sill. and therefore II would have been i'm.
for the secretary OF the treasury
10 procure any legislation In that body before
time, and for this reason Secretary Car !
isle thought it necessary 10 make the applica-
ion first TO the committee on finance Of the
suate, which b. hopss viii sct upon The meas