Omaha daily bee., 1894-04-17

THE BORROWED SURPLUS VANISHING.
The revenues Of tho government continue
10 he considerably less than the current
expenditures and the surplus in the treasury
created by the sale Of bonds and the in
crease Of the lnterest-bearing debt Of the
nation is gradually melting away. The
latest figures placed the general treasury
balance at a little over 1892, 900. 900, Of which
nearly s1O6. 900, 900 was in gold, thus show
ing a considerable decline in the balance
since the bonds we're negotiated. The belief
expressed by treasury officials two or three
months ago that by this time the receipts
and expenses would nearly or quite balance
is not being realized, and there is no APP
parent reason to expect any Improvement in
the situation in this respect for months to
come. on the contrary, 1t must be regarded
as certain that the surplus will continue to
decline. with every probability that the
amount borrowed will disappear altogether
before the tide turns or any new revenue
raising legislation can be made effective.
It is said that there Is no present intention
at the Treasury department TO make another
issue of bonds, but II there should happen to
be a heavy run upon the treasury gold for
export or other purposes the issue Of bonds
might become imperative. There Is at this
time no indication of an unusual demand for
gold for export. Usually the outflow of gold
during the spring months is large, that for
April of last year amounting to $1S, 900, 900,
but this year seems likely to prove an ex-
ception, due TO relatively small importations
and also to the fact that the increased con-
ndence abroad In our financial stability is
favorable 20 the retention there OF American
securities. For the past nine months the ex-
cess Of exports Of merchandise over imports
has been very large, and, Of course, this has
been steadily against gold exports. Under
these conditions the treasury officials do not
believe there can be large shipments of gold
during the present season. Stlll there is re-
ported to be apprehension that another issue
Of bonds may become necessary. One cause
Of this is the fear that the tariff bill will not
become law until the treasury balance is
again reduced to the danger point, and an
other is the persistent effort of the silver
extremists in congress to discredlt the gold
standard. AS to the latter there can be
little danger so long as the president firmly
adheres to the position he has so far held
regarding silver. 1t has been amply demon
strated that no assault upon the gold stand
ard can be successful that is not approved
by Mr.. Cleveland, for while the silver
men in congress have strength enough
to pass any measure relating to
silver upon which they are united,
they are not strong enough to over
come an executive veto If supported by a
union of the republicans and the anti-silver
democrats. 1t is suggested, however, by the
bill recently introduced in the house provid-
ing for the coinage of the seigniorage and the
issue Of bonds, and said to be an administra-
tion measure, that the president may accede
to a compromise of this sort. This bill is in
line with the suggestion of Mr.. Cleveland in
his message vetoing the seigniorage bill, but
a majority Of the democrats in congress are
not in favor of issuing bonds, and therefore
this measure is not likely to receive favor
able consideration. As to the fear that the
tariff bill will not become law until the
treasury balance is again reduced to the dan
ger point, it is perhaps well founded. The re-
publicans do not seem disposed to have any
limit placed upon the discussion of the bill,
anu Jney lnu warrant LOT lLllS III tHe eA-
preston Of popular sentiment as given in the
late elections. A resolution is now before
the senate committee on rules proposing that
general debate shall be continued until June
4 and that a final vote shall be taken on
June Z, but there is little probability that an
agreement can be reached on this PROPOSE
tion. The disposition of the republicans was
shown in a proposed amendment fixing a day
in November for the final vote on the tariff
bill. But even if that measure should go
into effect at the time fixed, July l, it would
probably be several months before the reve-
nues from it would overtake expenditures
In order to do this there must be collected
the estimated $50, 900, 900 from income tax,
and this will be a work of time.
1t seems highly probable, therefore, that
the treasury will find it necessary to make
a further issue of bonds, adding still more
to the interest-bearing debt of the nation
as the price of a reckless attempt to o%verturn
a long-established fiscal policy. 1t has been
well said that the democratic party is drift
ing to certain defeat.