New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-05

.u-orr1lNE OF HIS NEW BANKING
s,uEME-rHE BOND IssUE-MAINTE-
~,ScE OF THE GOLD STANDARD
RECEIPTS AND EXPENDITURES.
,,...,;nston Dec. A-Secretary Carlisle's report
"s.A' onerations Of the United States Treasury
1V.n.rtment for the fiscal year ended June 80 was
pep'.a 10 Congress to-day. 1t treats in detail
pre'es only touched upon by the President in
wnS' .nual message on the financial policy OF the
MS .s,,ation The subject of Currency Re
Aon secretary Carlisle treats exhaustively. He
io'" !, with the condition of the Treasury on
plen', aay OF the current fiscal year. He says:
INC 'o- the first day Of July last the total cash
~. treasury. excluding current liabilities. but
.s,,e a sold reserve of s6i,s7302i was Nl6626.-
ln'a on the first day of November the total
s,cludIng current liabilities. but including
c.n sx in gold was $780, 73i. showing a de-
- ~ 50 sS is7. The excess OF expenditures over
"s.,o during the last fiscal year was $6s.SOS,ZoV
ar.ing the first five months OF the present
vsar. Sl 737 1861 90. 1t is not believed. however,
=, his difference between the receipts and ex-
.s,,urss will continue In the same proportion
ri the close OF the year and. accordingly
W. estimated a deficiency OF s2o,000.CO0 at that
-. Owing TO the large importations OF raw
s., in anticipation OF the passage of the Tariff
Al
s 's.. article 10 TO December /. amounted to only
:, ~ 40 and of course. nothing has yet been re-
80 from the tax on incomes. as its payment
80, be legally enforced until after July l. 1885
u, there is to believe that the importatiohs
:, .ugar must be resumed at an early date. and
ol ,rsd upon a scale which will yield large
sovsnue from that source during the remainder
s ~ wear and IL Is probable. also. that on &C.
count GO Of the penalties which may De incurred LOT
nonSerable part of the income tax Will be realized
:. lime 10 b. available. AS the reduced rates OF
y, l,v an manufactures OF wool will take effect on
G .rysyy 1885 the mDortations OF that class OF
soois will doubtless be greatly increased after
Sat date and conseguehty
iron, that source. II these expectations snoud De
70 any considerable extent disappointed. the year
will close with a greater deficiency than mas ceeh
estimated
ur EXPECTS SUFFICIENT REVENUE FOR 1896
"uy opinion is that the laws now in force Will
vsd an ample revenue for the fiscal year 1896 as
all their provisions will then be operative. and the
irrespective improvement in the business OF the
country IL realized. will greatly increase the re-
sources from which taxes are collected and &C
eordingly a surplus OF S-aeiis-V Is esui'a'cu ioi
The Secretary repeats his request for relief from
The unsatisfactory condition o. our financial legis-
luon. especially as TO the issue and redemption
Of circulating notes by the Government. and the
Treasury's inability to make adequate provision
for the support of the public credit
THE BOND ISSUES.
He recites the reduction OF the gold reserve TO
b. 157S2i on January H. 1884. the consequent issue
pf bonds. the resort to the same expedent again
IN November and the causes that led to 1t. or
the last bond sale he says:
This transaction justifes the opinion that
r per cent bond. having reasonable time TO
run. could probably have been sold at par. and
disposed of at above that rate. He repeats
the recommendation made In his last annual re-
port, that in the interest of the Government and
the people power be conferred upon the Secretary
OF the Treasury 10 negotiate loans at lower rate
0! interest and for shorter time than are now
Speaking Of the requirement Of a gold reserve.
Had there been no statute or public policy
quring the Government to redeem In coin and re-
Issue It's own notes and to maintain the parity OF
two kinds Of coin Of unequal intrinsic value there
would never have been time since the close OF
the Ear when the funds in the Treasury were not
ample for al other purposes. and no issue r, OF
% long as there are in circulation under the au-
value but equal in legal tender qualities every con-
Ideration OF good faith and sound policy requires
he prompt redemption OF the notes on presenta-
ion in the kind of coin demanded by the holder.
md the constant observance of such administrative
hasng power of the less valua bic metal. This
. essential to the continued circulation or our
andard silver dollars and their paper representa-
ives at par and TO abandon this policy, without
a better one in its place. would not
,nly fail to cure many OF the evils now existing,
UT would entail upon the people OF the country
Idduonal and greater ones
az however. the mandatory legislation which
Eesps large volume OF Government notes In cir
uation. Notwithstanding their repeated redemptons
. coin, and also imposes upon the Government an
,blgaton 10 maintain the parity OF the two metals
respect to their purchasing and debt-paying pow
n Is perpetuated. II Is evident that the Treasury
must remain in position which Will compel IL 10
procure and furnish gold to all who demand H.
whether they be own citizens or citizens or sub,
ects Of other countries. AT the same time. II VIII
nave no lawful or regular means OF obtaining gold
Except by the issue and sale OF bonds. thus periodi
ally increasing the interest bearing public debt
without either making permanent additions to its
stock OF this metal or diminishing 10 any extent lts
obligations on account of the notes redeemed
THE NEED OF CURRENCY REFORM.
This situation is the necessary result OF three
features OF currency legislation. and 1t cannot
be permanently avoided, or even temporarily I'M
proved wihou, material changes in our laws relat-
Ing to that subject These features are % The
circulation Of United States notes as currency and
their current redemption in coin demand. CD The
compulsory reissue Of such notes after redemption
% The excessive accumulation and coinage OF sill
VET and the issue OF notes and certificates against
q compared with the standard unit OF value IN this
and the other principal commercial countries,
speaking OF the withdrawal OF foreign capital ana
ne cessation of reinvestment. he says: There are
Wy two ways In which this withdrawal can De
heir commodities in foreign markets to sufficient
mount 10 create balance OF credit In their iayor
% ship gold. that being the only money recognized
u the settlement OF international balances. Inc
2Ient to which these Withdrawals have occurred
Srng the last two years and the manner In which
Wg have been accomplished are partially shown
~ fact that. although our exports OF merchan-
SxS hcuding silver bullion. exceeded our Imports
w'ms the fiscal year 1893 10 the amount OF $56IIy-
- tae net export Of god was $ss.SNz7o while dur,
- me nsca year 1894 the net export OF that metal
~ ~ Ml7zs65. notwithstanding the balance IN our
nvor On account of merchandise and silver bullion
,Sa abroad amounted to s2s434e 1t thus appears
s NAV our people compelled to pay abroad In
im ss and gold during the time named at
,Ss ~ 1000 more than they received back, ana
I'M. ms vas, sum has been distracted largely from
~ acuve business enterprises Of the country: 20
ccec.ne their growth and prosperity as to limit
Sv n,sumption. reduce prices and discourage pro-
The GOLD STANDARD NECESSARY.
NE cannot preserve our trade relations with our
Ses' customers says Secretary Carlisle. unless
~ maintain monetary system substantially In
-S'oid with theirs; and until they manifest as
po''uon to cooperate with In effecting change
~von terms just and fair to all our interests. we
~ 10 continue adhesion 10 the gold standard
sssiue with as large use OF silver as III CON
ps..eht with the strict maintenance OF that policy
az