The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-12-05
CARLISLE AND The CASH.
The SeCTetay'S Annual Report Sent to
TO Congress.

Up the Governments Credit-The At
tention of COnRrsss Again Called to
the Necessity ofRernediaI Legislation.
His New Financial Scheme as En-
bodied in the Message OF the Presi-
dent.
Washington. Dec. 4-By far the most in
teresting part of the report Of the Secre-
tary of the Treasury which was sent to
congress to-day is the exhaustive atten-
ton paid by that official TO the condition
Of the treasury and currency reform. In
opening, the secretary mentions that the
excess Of expenditures over the receipts
during the last fiscal year was S69. sos. 260
and during the first five months of the
present fiscal year 81, 7S7, 1867. 1t is not
believed. however, he writes, that this
difference between the receipts and expen-
ditures will continue in same proportion
until the close of the year, and accord
ingly he estimates a deficiency Of $50, 600, 600
at that time. while he further expresses
the opinion that the present law will yield
ample revenue for the fiscal year 1896, as
all its provisions will then be
in operation and the prospective improve
ment in the business of the country, if
realized, will greatly increase the re-
sources from which taxes are collected,
and accordingly a surplus of S2S, S14 800 is
estimated for that year The secretary
calls attention to the opinions conveyed in
his last annual report regarding the ''un-
satisfactory condition of our financial leg
lslatlon, and especially TO the issue and
redemption of circulating notes by the
government and the inability of the Sec
rotary of the Treasury, under the existing
law, TO make prompt and adequate pro-
visions for the support of the public cred
It. The experiences of the past year
have confirmed the secretarys heretofore
expressed views, and he urges upon con-
gress the necessity for remedial legislation
during the present session.
The secretary then sets forth state
ment OF the practical and remarkable
results of existing legislation" which he
says will demonstrate its injurious eff
reefs upon our financial affairs more
clearly than any arguement that could be
submitted"
This statement by the secretary in
cludes reference to the relations of the
gold reserve, which on Jan Il last stood at
500, 15l S24, and the treasury cash balance
including current liabilities, which, includ-
ing the gold reserve and subsidiary and
minor coin, was $S3, 1861, 402 lie alludes 10
the excess of expenses over receipts. the
imposslbllity of procuring gold for the re-
serve without resorting TO the issue and
sale OF bonds and the consequent issue
under the Resumption act" of $4,000. 900
. per cent bonds. on March A. 1894. he
shows, the free gold in the treasury
amounted to the sum of $l07 446, SO2. which
was the highest point that has been
reached since March 25, 1893. The lowest
point reached by the reserve since the
resumption of specie payments was on
Aug. z, 1894, when, Mr. Carlisle saws. "R1
reason of Withdrawals in the redemption
OF notes it was reduced to S52 1883. 500
AFTER that date it was slowly replenished
by voluntary exchanges of gold coin for
United States notes by banks and by
small receipts of gold in payment of dues
to the government until Nov. IA. 1891
when it reached the sum of S61. S73. S74."
reference Is here made by Mr.. Car
hsle to the feeling of public uneasiness
mdlcated by the presentation of notes for
redemption in gold by individuals and in
situations not desiring it for export, the
vast accumulation of money at our fnan-
cial centers and the prevalent depression
! OF business, which had so reduced the
rates OF discount that the inducements to
Keep FUNDS abroad, where better invest
ments could be made, were much greater
| than in ordinary times. This, saws the
the report, taken with other facts. in
Guiding revenue inadequate enough
10 meet expenses, made il
necessary to again resort to an issue of
| bonds and the proposals therefor issued
! Nov. IA are included in this Immediate
connection. The results of this proposal
and acceptance of a single bid for $50. 1000 =
600 upon basis of 2.S7S per cent are
mentioned and the secretary says: THE
proceeds of the sale, $5S, 53S, 5OO have near
| ly all been paid into the treasury accord
/ ing to the terms of sale"
Continuing, Secretary Carlisle saws.
This transaction justified the opinion that
2la per cent. bond. having a reasonable
time to run, could probably have been sold
| at par, and a certainty that a per cent
bond could have been disposed of at or
above that rate" Secretary Carlisle
| thereupon repeats the recommendations
made in his last annual report that in
/ the interest of the government and people.
/ power be conferred upon the Secretary of
| the Treasury to negotiate loans a. a lower
rate of interest and for a shorter time
| than are now allowed. The existence of
! such authority, he continues, instead of
increasing the probabilities of frequent re-
! sort to that means of raising money.
would have a contrary effect, because,
when it is known that the Secretary of
the Treasury is clothed with ample power
and facilities to procure means for the
.
in the ability of the government to meet
promptly all demands upon it will be
much stronger than under the present cir
cumstances Besides the policy of limit
ing the government to the sale of anti
quated bonds, bearing a rate of interest
wholly inconsistent with the existing state
of the public credit and having a longer
time to run than is apparently necessary
at the date of its issue cannot be justi-
fed upon any grounds of expediency or
principle.
1.-THE only bonds which the government
has authority to issue for any purpose"
1 Secretary Carlisle says, "are described in
the refunding act of July H. 1870. passed
nearly a quarter of a century ago, and
since then the credit and resources of the
country have so greatly improved that the
fiscal legislation of that period is wholly
unsuited to the present situation"
He hopes congress will amend the law so
as to conform to the present requirements
of the public credit and service.
| The secretary says: IF mandatory
legislation, which keeps a large volume of
/ government notes in circulation, notwith-
standing their repeated redemptions in
| coin, and also imposes upon the govern
ment an obligation to maintain the parity