The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1894-01-03
THE NATIONS FINANCES.
SECRETARY CARLISLE'S Be
PORT SENT TO CONGRESS.
He Estimates That There VIII Be q
Deficiency of $2S, 100000 and
Asks for Authority to Issue Bonds
-Fayors n Tax on CORPORATE In

He Estimates That There Will be
Deficiency of $2S, 100000 and
Asks for Authority to Issue Bonds
.-Favors a Tax on Corporate In
vestments, and Inheritances.
The annual report OF Secretary Carlisle was
sent to both Houses of Congress. The docu-
ment is a very thorough and exhaustive re-
view of the condition of the Governments
finances and contains various recommenda-
tions for the relief of the Treasury.
After telling Of the years expenditures in
the various departments, the Secretary re.
ports that on December /, 1893, the actual
net balance in the Treasury, after deducting
the bank-note five per cent. redemption
fund. outstanding drafts and checks, dls-
bursing officers balances, agency accounts
44S.25, and Of the total amount held $l2.S4,-
517.S0 was In subsidiary silver and minor
coins. The Secretary says
I have. therefore. estimated probable de-
hciency OF 1928, 600 900 at the. close of"the
year, and If Congress concurs in this view OF
the situation, 1t will be incumbent upon 1t
to make some provision for raising tnat
amount as soon as practicable, by ta1ation
or otherwise.
On account OF the difficulty OF securing
such sum within the time 1t will be re.
ouired by the imposition and collection OF
additional taxes, recommend that the third
section O. the act to provide for the resump'
tion Of specie payments, approved January
Il, 1875, which confers authority upon the
Secretary Of the Treasury to issue and sell
certain descriptions Of United States bonds, be
soamended as to authorize him 70 issue ano
SELL at not less than par in coin, bonds to an
amount not exceeding 5000, 900, 900, bearing
lower rate OF interest and having shorter
time TO 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.
The condition OF the Treasury Is such that
unless some available means are promptly
provided by law for supplying the growing
deficiency. the public service will be ser1-
ously IMPAIRED and pensioners and other
creditors subjected to great delay and incon-
yenience. '
The necessity OF maintaining the gold re-
serve OF 800, ,000, 900 Is pointed OUT and a
history OF the reserves recent fluctuations
given, with 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 re-
| snonsibilities of bank Of issue, and to a GER
| tain extent the functions Of bank OF de-
| nosit. they have not conferred upon the Sec
retary any part OF the discretionary powers
usually possessed by the executive heads OF
institutions engaged in conducting this cnar-
acter OF financial business.
He can neither negotiate temporary loans
to meet casual deficiencies nor retire and
| cancel the notes of the Government W1tnout
| aubstitutine other currency for them when
| the revenues are redundant or their clrcula-
ton excessive, nor can he resort, e1cept TO q
very limited extent, to any Of the expedients
which in his Judgment may be absolutely
necessary to prevent injurious disturbance
OF the financial situation.
AS to currency legislation TIE Secretary
says;
The recent repeal Of 80 much of the act OF
July IA, 1890, as required the secretary OF
the Treasury to purchase silver ouL!on On aaa a.
issue Treasury notes In payment 1or II.
makes such radical change in the policy OF
the Government respecting the currency OF
the country that until its effects ara more
fully developed I do not consider 1t advisable
to recommend further specific legislation
upon that subject.
AS to the circulation of silver and silver
notes the Secretary reports; ,,,...
One Of the principal difficulties encount-
|
from the indisposition OF the public to retain
standard silver dollars and silver certlhcates
in circulation.
Why this should be the case Is not easily
understood, for, although these certificates
are NOT legal tender in the payment OF PEI
vate debts. they are, by the acts OF 1878 and
1885. made receivable for all public dues, and
by the act Of May ~, 1882, National banks are
authorized to hold them as part OF their law
ful reserves.
For the purpose OF creating O greater de-
mand for their permanent use in the daily
transactions OF the people have directed
that, as far as the law permits, and as rapid.
" as the opportunity is afforded, the amount
OF such certificates OF denominations less
than ten dollars shall be increased oy SUD
stitutipg them for larger ones to be retired
and that the small denominations OF other
kinds OF currently shall be retired as they are
received into the Treasury, and larger ones
substituted in their places.
Pranarations ordered at the mints to coin
the silver seigniorage now on hand IN ease
of increase in the demand for dollars or
certificates are also reported.
The Secretary recognizes the necessity foi
q comprehensive review OF the Tariff laws
but refrains from all but suggestions upon
the general principles OF revenue laws ano
their application, with the requirement tha'
the burdens should fall as equally as possible
among the people. Regarding the manner
of fixing rates, the Secretary says: -.
1t is manifestly unjust to compel one Cit
jzen to paw the same amount OF tax on
ward of cloth worth 81 that another citizeI
paws on yard of cloth worth S5.
But the objections urged against the ac
yalorem system of tariff taxation are not gen
orally based upon the proposition that Il
lacks the element Of justice or equality, ou
usually upon the grounds thar IL Is diHicut'
of administration, and that 1t furnishes
strong inducements for The commits sion o
frauds and perjuries In order to secure fals'
, valuations OF imported goods
The Secretary discusses the matter OF lre'
raw materials and cheap necessaries OF lif'
on the same general lines followed by th'
WAYS and Means Committee.
The Secretary's report says:
, Taxes upon legacies and SUGGESTIONS ant
. incomes acquired from investments III stocN
| and bonds of corporations and Joint stocl
| companies are less Objectionable In thei
/, nature and in the methods Of collection thai
D any other excuses which 1t Is competent 10
the United States to impose upon income
according to their actual value or amount
When the necessities OF the Government
, compel il to resort so additional sources 10
= procuring revenue, it is but fair tnat. !
should make its acquisitions mainly upol
. rbosa whose possessions are of such a char
i acter to enable them to escape. wholly o
i partially, the general burdens OF taXatl9
n rather than upon those who are alread
). taxed substantially to the extent OF thei
= ability to pay; and as incomes from capita
l. Invested in the stocks and securities OF tn
= institutions mentioned are not now subj.c
70 taxation under any law Of the Unite
States or the laws OF the several States, e:
cept in a few instances, 1t cannot be co.
sidered unjust to exact small per cen!as
of their amount for the public use.
It is generally recognized iaet tnas cap
d tal in the form OF money, bonds and oth'