The morning call., 1894-01-16

Washington. Jan. Is, 1894
Hon. d. ". Voorhees,, chairman Of the
Committee on Finance, United States
SenGte-DEAR SIR: In compliance with
your verbal request. have the honor to
submit for the consideration of the Finance
Committee of the Senate statements show
ing the actual condition of the treasury on
the 18TH day of the present month, and an
estimate of the receipts and expenditures
during the remainder of this month and
the month of February. 1t will be seen
from the statement that there is urgent
necessity for such immediate action as
will replenish the coin reserve, and ena-
bic this department to coz tinue the pay
ment OF public expenses and TO discharge
the obligations of the Government to pen
sioners and other lawful creditors.
When my annual report was prepared 1t
was estimated that the expenses during
this current fiscal year would exceed the
receipts TO the amount of about S2S, 900 900,
and / asked Congress for authority to issue
and sell bonds or other forms of obliga-
tOns TO the amount of not exceeding
$50. 000 600, bearing a low rate OF interest,
and having a reasonably short time to run.
to enable the Secretary of the Treasury to
supply such deficiencies as might occur in
the revenues. The estimate then made
was based upon the assumption that the
worst effects of our financial disturbances
had already been realized. and that there
would be a substantial increase in the
revenues for the remainder of the year.
While it was not believed that the de-
ficiency then existing would be supplied
by increased revenues In the future it was
hoped that no additional deficiency would
occur, but the receipts and expenditures
up to the 18th of the present month show
that the estimate of deficiency Of $685.
600, 900 at the close of :he year was much
too low
II the average monthly deficiency should
continue the total differences between the
receipts and expenditures on the 30th of
June next will be SIS. .167, 542.
According TO the best estimate that can
be made the total receipts during the
present month and tbs month of February
will be Sal, 100000 and the total expendi-
lures will be S60.S00,000. showing def
cheney during the two months Of SIS. 400
600; but this does not include any pay-
ments on account of sugar bounty claims,
for which claims to the amount of nearly
So. 600. coo have already been presented,
and are now under investigation in the
department
The assets OF the treasury and current
liabilities in excess Of certificates and treas
ury notes outstanding were as follows on
the 18th day of the present month: GOLD,
S74. .108, 149; silver dollars and bullion,
IS, ,092 2S7; fractional silver coin, So, 133,-
903; United States notes, 5000, ,272; treas
ury notes of 1890. S476.000; national bank
notes. S14.026. 735; minor coins, S93S. .S25;
deposits in banks, SIS. .470,S63; total cash
assets, 1882. 327, ,S89. The liabilities were:
Bank note per cent fund, 81, ,198 2I9; out
standing checks and drafts. So, I63. .9l7; dis
bursting officers balances, S26. 17G, 149; Post
office Department account, S., S97, ,741; un-
distributed assets of failed national banks,
81, ,927.727; District OF Columbia account,
S144. 23O; total agency account, SAC, 996. 366;
gold reserve, S74, OF, 549; net balance, $I1,-
223, ,374 Total liabilities, S132, 37Z, ,889.
1t will appear from this statement that
the coin reserve has been reduced to S74.-
los. 149, and it is evident from the condition
of the Treasury Depar ment that it will
have no means to defray the ordinary ex-
penses of the Government unless a large
part of the payments are hereafter made
out of that fund. II this is done the coin
reserve will be reduced by the 1st of Feb
ruary to about S66.601, 1854. a sum wholly
inadequate for the purpose for which it
was created.
On account of this critical condition of
the treasury have considered it my duty,
in addition to the earnest recommends
tions contained in my annual report, to
appeal twice to your committee, and after
full explanation of the situation. urge
10
With the permission of the committee |
have prepared and presented for its con-
siderstioD bill which, if promptly passed.
would. in my opinion. meet all the require
ments of the situation by providing the
necessary means for defraying the public
expenses and replenishing the coin reserve
TO such an extent as to assure the main
tenance of the parity of all forms of
United States currency.
While this proposed measure of relief
has not yet been disposed of or considered
by the committee. the great differences of
opinion which are known 10 exist in both
branches of Congress concerning the pro
prety of granting additional or amended
authority to issue bonds in any form, or
for any purpose, render it doubtful
whether new legislation upon the subject
can be secured in time to provide the means
which are imperatiyely demanded in order
to preserve the credit and honor of the
Government Authority to issue and sell
bonds for the purpose of maintaining
specie payments was expressly conferred
upon the Secretary of the Treasury by the
act Of January IA, 1875 but has not been
exercised since 1879, and on account of the
high rate of interest provided for and the
length of time such bonds would have to
run l have not been satisfied that such
emergency has heretofore existed as would
clearly justify their issue. But the neces-
sity for relief at this time is so urgent
and the prospect OF material Improvement
IN the financial condition of the Govern
ment so problematicai that unless author