The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1894-12-14


estimated revenues, show Il deficit of S20,-
100000. 1t is estimated that upon the
basis of existing laws the revenues of the
government for the fiscal year 1896 will
be:
From customs. .................S1 Isl, 600, 900
From internal revenue ........ 100, 900 900
From miscellaneous sources. -. 10000, 900
Total estimated revenues. -. SAG, 0O7. 4O7
The Secretary thinks many small dis
trict Offices should be consolidated and n
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 new
system of currency are set forth in detail
Mr.. Carlisle reviews the financial stats
tics referred to in the tabulated state
ment and charges 5000, 900 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 1, 1895, but there is rea-
son TO believe the importation of sugar
must soon be resumed on q large SCALE
and he thinks by July 10 considerable col
lections 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,S14,920.
In urging financial legislation for the
purpose of supporting the public credit
Mr.. Carlisle says:
''The well-known defects In our financial
system and the serious nature OF the evils
threatened by them have done more during
the last two years to impair the credit of the
Government and the people of the United
States at home and abroad and TO check our
industrial and commercial progress than all
other things combined, and our first and
plainest duty Is TO provide, If possible, some
effective method for the prompt and perma-
nent relief of the country from the conse-
quences OF the present unwise policy.
The Secretary then reviews the circum-
stances leading up to the first $50 100000
issue of bonds, yielding $5S,660,917 and
increasing the free gold in the treasury to
$107 ,446,S02. 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
reduced to $50, $50, 500. After that date
1t was slowly replenished by voluntary
exchanges of gold coin for United States
notes by the banks and by small receipts
of gold in the payment of dues to the gov
crnment until the 18th Of November,
1894 when it reached the sum of $61,-
S7S,374.
In the meantime, however, the frequent
,fof Of dom rNfi in
gold clearly indicated the existence Of a
feeling of uneasness in the public mind.
In addition the vast accumulation Of
money ut our financial centers and the
general depression in business which pre-
vailed in this country had so reduced the
rates of discount that the inducement to
keep funds abroad was much greater than
in ordinary times and made it highly inn
prudent TO neglect any precaution which
appeared necessary to insure the safety
of our financial position. Therefore, the
second issue of $50,000,000 was decided
upon. The proceeds of the sale, $JS,-
53S, 800, have nearly all been paid into
the treasury, according 10 the terms OF the
sale, reducing the rate of interest to
ISIS per cent. The transaction jussiies
the opinion that 21a per cent. bond
could probably have been sold at par.
Here the Secretary asks for law giving
him such authority, saying it would
strengthen public confidence.
Preservation of the Gold Reserve.
With regard to the redemption of gov
ernment 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
l roll ohan ho Ia.
on the public and nation. This condition
cannot be permanently remedied except
by great changes iS the laws relating to
the subject. The situation is the result,
too, of three policies: The circulation of
United States notes as currency and their
current redemption in coin on demand;
the compulsory reissuance of such notes
after redemption the excessive accumu-
lation and coinage of silver and the issue
of notes and certificates against il at a
lower ratio than is warranted. He con-
| tinues:
Frequent issues OF bonds for the purpose
OF procuring gold which cannot be kept after
IL has been obtained, Will certainly cause in
creased distrust among our own people as
well as among the people OF other countries
/ and not only swell the volume or our securi-
ties returning from abroad for sale or re-
| defnptiOn, but Increase the withdrawal of
| foreign capital heretofore invested I'm our do
nestle enterprises.
at Is not the capitalists alone whose inter
ests are affected by the use or Threatened
use OF a deprecated aud ffuctuating cur
rency and the consequent derangupent and
diminutlon OF business. paralysis OF bust
ness, whatever nnny be Its cause, strikes first
! the wage-enrner.
"Under our present currency system, tho
volume OF circulation In unchangcable; II IL
unalterably fixed at certhin amount and
no matter how great the emergency may be
! II can be neither enlarged nor diminished.
The only part Of the currency possessing In