Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1894-12-14
Changes Must Be Made.

For the civil establishment. ..... sol, $50, 900
For the military establishment. 53.250,OnO
For the naval establishment. 80. 81, 800 900
For the Indian service. ......... IL, 5OO,OO o
For pensions. 4O.5OO,O 600
For interest on the public debt. 31,0oO.0O0
For postal service. ........... S4,427,7 4S
Total estimated expenditures. .S444 427, 74s
The above figures, compared with the
estimated revenues. show a deficit of $780,
100000. 1t is estimated that upon the
basis of existing laws the revenues of the
government for the fiscal year 1896 will
he:
From customs. .S1S5.0 900
From Internal revenue. ......... $780, 0 600
IRON miscellaneous sources. .... 15,0OO,0O0
FROM postal service. S6.9OI,4OI
Total estimated revenues. -. .S47G.9O7 .4OT
The Secretary thinks many small dis
trict Offices should he consolidated and II
general reorganization of the customs SER
vice made.
He also asks for 100000 per annum
for investigating Chinese cases and pay
ing expenses of deportation, owing to the
new treaty with China.
Subject of Currency Reform.
The most important feature of Mr.. Car
isles report is his discussion of the sub
ject of currency reform, in the course of
which the ADMINISTRATORS plans of Il new
system of currency are set forth in detail.
Mr.. Carlisle reviews the financial statis-
tics referred to in the tabulated state
ment and charges $3,O2o,OOO of the de-
felt to the importation of raw sugar prior
to the time the new tariff law went into
effect. The income tax will afford no
revenue till July /, 1885, but there is rca-
son to believe the importation of sugar
must Snnn he rncOnroI IN a .lorun coo1o
and he thinks by July 10 considerable col
l~cctions under the income tax law will
have been made. He is of the opinion
that the execution of the present laws will
yield sufficient revenue for 1896 and leave
n surplus of $2S,S14,92O.
In urging financial legislation for the
purpose of supporting the public credit
Mr.. Carlisle says:
1.-The well-known defects. In our tinancial
system and the serious nature of the evils
threatened by them have done more during
Government and the people Of the United
States Mt home and abroad and to check our
industrial and commercial progress than all
other things combined. and our first and
p~lainest duty is to provide. II possible. some
effective method for the prompt and permu-
nent relief of the country from the conse-
luenccs of the present unwise policy
The Secretary then reviews the circum-
stances leading up to the first $50. 600, 900
issue of bonds. yielding $5S.660,917 and
increasing the free gold i'll the treasury to
~$1O7,44G,SO2. The lowest point reached
by the reserve since the resumption of
specie payments was on the 9TH day of
August, 1894. when. by reason of with
drawals in the redemption of notes, it was
reduced to So, 1S9.500. After that date
it was slowly replenishcd by voluntary
l r.n1,D,rn, 80 ...11 ..:, G.. IA. NOD
notes by the banks and by small receipts
of gold in the payment of dues to the gov
eminent until the 14th of November,
1894. when it reached the sum of SOL
S7S.374.
In the meantime. however, the frequent
presentation of notes for redemption i'm
gold clearly indicated the existence of u
feeling of uneasiness in the public mind.
In addition the vast accumulation of
money at our financial centers and the
general depression in business which pre-
vailed in this country had so reduced the
rates of discount that the induccment to
keep funds abroad was much greater than
in ordinary times and made it highly i'm
prudent to neglect any precaution which
appeared necessary to insure the safety
of our financial position. Therefore. the
second issue of S50,O0O,OOO was decided
upon. The proceeds of the sale. $685.
53SS $500, have nearly all been paid into
the treasury. according to the terms of the
sale, reducing the rate of interest to
ISIS per cent. The transaction j~ustifies
the opinion that a 2Ea per cent. bond
could probably have been sold mt par.
Here the Secretary asks for II law giving
him such authority. saying it would
strengthen public confidence.
Preservation of the Gold Reserve.
With regard to the redemption of gov
eminent obligations the Secretary shows
his attitude on the hard money question
and says the one who presents paper for
redemption must be given his choice of
metals, as n change would work hardship
on the public and nation. This condition
cannot be permanently remedied except
by great changes in the laws relating to
the subject. The situation is the result,
too, of three policies: The circulation of
United States notes MS currency and their
current redemption in coin on demand;
the compulsory reinsurance of such notes
nfter redemption; the excessive accumu-
latiOn and coinage of silver md the issue
of notes and certificates against it at a
lower ratio than is warranted. He con-
tinues:
"Frcquent issues of bonds for the purpose
of procuring gold. which cannot be kept after
it has been obtained. will certainly cause In.
creased distrust among our w people rs
well as among the people of other countries
and not only swell the volume of our securi
ties returning from abroad for sale or re.
Iemption, but increase the withdrawal OF
foreign capital heretofore invested in our do
mestic enterprises.
at is not the capitalists alone whose inter
ests are affected, by the use or threatened
use of q deprecated and iluctuating cur
rency and the consequent arrangement and
%diminutiOn of business. A paralysis OF bust
ness. whatever may be Its cause, strikes frs
the wage-earner.
sUnder our present currency system, thu
volume of circulation is Interchangeable; 1t l!
unalterably fixed at n certain amount ant
no matter how great the emergency may bt
1t. can be neither enlarged nor diminished
The only part OF the currency possessing IL