Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-01-16
UNCLE SANS PURSE.
rT IS AUTHoRITATlvELY SHOWN TO
BE VERY LEAN.
Secretary Carlisle on the Critical Situation
A Proposed Biil Providing
for Bond Issues.

WASHINGTON. D. c., January ID
Secretary Carlisle has deemed It proper
TO make public, through a letter ad-
dressed TO Mr.. Voorhees,, chairman OF
the Senate Committee on Finance. with
whom he has been In consultation FOR
several days, an authentic statement OK
the present critical condition OF the
United States Treasury and OF its urgent
needs.
The Secretary says: I'm compliance
with your verbal request, 1 have the
honor to submit for the consideration OF
the Finance Committee of the Senate
statements showing the actual condition
Of tho Treasury on the 18th day OF the
present month and an estimate or the re-
ceipts and expenses during the remainder
Of this month and the month or rep
ruary. IT will be seen from these state
ments that there Is an urgent necessity
for such immediate action as VIII re-
plenish the coin reserve and enable this
department to continue the payment OF
public expenses and discharge the obh-
gations OF the government TO pensioners
and other lawful creditors.
when my annual report was prepared
IL was estimated that the expenses during
the current fiscal year would exceed the
receipts to the amount of about SZ6,VVv-
O0O and ] asked Congress for authority 10
issue and sell bonds. or rather forms Oh
obligation to an amount not eXceedlhs
$4,000 900 bearing a low rate OF interest
and having "A reasonably snort ume 10
run, to enable the Secretary OF the Irea-
sury 20 supply such deficiency as might
occur I'm the revenues. The estimate theh
made was based upon the assumption that
the worst effects Of our financial disturb
once had already been realized and that
tbare would be a substantial increase In
the revenues for the remainder OF the
vear. While It was not believed that
tho deficiency then actually existing would
bn supplled by increased revenues In the
future Il was hoped no additional def
cleucv would occur, but the receipts and
expendltures during the month or De-
celnbcr. and up 10 the 18th day or the
nresent month show that the estimate OF
a deficiency Of S2SC000o az the close OF
the year was too low"
THE CURRENT DEFICIENCIES.
The Secretary then presents table OF
actual receipts, expenditures, and deH-
ciencies for each month of the hscal year.
including twelve days In January. snow
ing total excess Of expenditures over
rocelpts OF Sl3.55S0H Mr. Carlisle says
II the same average monthly dehclehCies
should occur meantime, the total differ
once between receipts and expenditures
on fho elth day Of June next would De
SIS 1882.
According to the best estimate that can
NO made the total receipts during the
nresent month and the month Of Febru-
arv will be 81, $4,000. and the total eX-
pondituros will be 603@,0p, showing
deficiency during the two months OF $lS'-
10000. But this does not include any
payments on account Of the sugar bouh-
ty. claims for which TO the amount OF
nearly 100000 have already been pre-
.antcd and are now under lnyesugaton
in the department.
s statement of the condition OF the
Treasury is presented. from which, the
Secretary says. it will appear that the
coin reserve has been reduced 20 NlluS,-
ii9. and It is evident from the condition
Of the Treasury that the department. VIII
have no means to defray the ordinary
EXPENSES Of the government unless
large part Of the payments are hereafter
made out of that fund. II this is done
the coin reserve will be reduced by the
1st OF February 10 about $66'6ol'S54'
sum wholly inadequate for the purposes
for which il was created.
LEGISLATIVE ACTION URGED.
"On account Of this critical condition
Of the Treasury" he continues, II have
considered 1t my duty, In addition TO the
earnest recommendations contained IN
my annual report to appear twice be-
fore YOUR committee, and after full ex-
planaton Of the situation. urge prompi.
legislative action on this subject. Win
the permission OF the committee / have
prepared and presented for it's conside-
ration Il bill which. II promptly passed,
would, i'm my opinion, meet all the re-
quircments Of the situation by providing
the necessary means for defrayng the
public expenses and replenishing the coin
reserve to such an extent IA 10 assure
the maintenance OF the parity OF all
forms Of United States currency.
"Wbile this proposed measure OF relief
has not vet been sposed Of or considered
bv the committee, the great differences OF
opinion which are known to exist in both
branches OF Congress concerning the
picpriety Of granting additional or amend
cd authority 10 issue bonds IN any form
or for any purpose, render II doubtful
whether new legislation upon the subject
can be secured in time to provide tht
means which are imperatively demanded
I'm order TO preserve the credit and honor
OF the government. Authority to issue
ana sell bonds for the purpose Of main
| tanning specie payments was expressly
conferred upon the Secretary Of the Trea-
sury by the act Of January A. lSl5 but IT
has not been exercised since 1879. and, on
account Of the high rate Of interest pro
v!ded for. and the length Of time such
bonds would have 10 run, have not been
satisfied that such an emergency has
heretofore existed as would clearly justify
tleir issue"
PROMPT RELIEF NEEDED.
"But the necessity for relief at this time
| IS urgent, and the prospect Of material
| iu.provement in the financial condition Of
tho government is 50 problematical that
| unless authority to issue and sell shorter
| bonds. or other obligations, bearing a
| lower rate OF interest than that specified
| in the existing law, is granted by COlgres
at n very early day, l shall feel con-
| strained by a sense Of public duty TO ex-
ercise the power already conferred, to the
extent. at least, Of providing an adequate
| coin reserve.
"If this action should be taken, Congress
ought, nevertheless, to provide promptly
| for the deficiency in the revenues during
the current fiscal year, and l will from
| time to time advise your committee OF
the condition Of the Treasury in order that
this subject may receive due considera-
| ton"
| The bill referred to IN Secretary Car
\ isles letter empowers him to issue from
tiroe to time. as he may deem necessary,
| and I'm such form as he may prescribe
| q upon or registered bonds OF the Unitsl
| states in denominations OF s25. and nul-
| tines thereof. reieemable I'm coin at the
Measure of the United States. after -
Years frcm date bearing 3 per cent. m
| terest, and TO use the proceeds 10 sup
piy deficiencies in the revenue.