Birmingham age-herald., 1894-12-05
SECRETARY CARLISLE
  Reviews the Oountry's Financial
 Condition, DISCUSSES BOND ISSUES And Makes important ReCom- mendations as to How to
DISCUSSES


 interesting part of the report of the seere- tary of the treasury, which was sent to congress today, is the exhaustive attention paid by that official to the condition of the treasury md currency reform.
 h opening the secretary mentioned that the excess of expenditures over receipts during the last fiscal year was S69, S)3 ,26), and during the first five months of the present fiscal year S21, ,7S7 1887. It is not believed, however, he writes, that this diff ference between the receipts and expendi- lures will continue in the same proportion until the close of the year, and accordingly he estimates a deficiency of S2) ,000 GOO at that time, while he further expresses the opinion that the present laws will yield ample return for the fiscal year 1896, as all their provisions will then be operative, and prospective improvement in the business of the country, If realized, will greatly in- crease tue sources from which taxes are collected and accordingly surplus of S29,- 6l4 ,920 Is estimated for that year.
 he secretary calls attention to opinions conveyed in his last annual report regard ing the unsatisfactory condition of our financial legislation, and especially to the issue and redemption of circulating notes by the govern nlent, and the inability of the secretary of the treasury, under exist ing laws, to make prompt and adequate provisions for the support of the public credit. The experiences of the past year have confirmed the secretary's heretofore expressed views. and he urges upon con- gress the necessity for remedial legislation during the present session. The secretary then sets forth the statement of 'practical and unavoidable results of existing legisla- tion, which, he says, twill demonstrate it's injurious effects upon our financial af- fairs more clearly than any argument that could be Submitted.' '
 This statement by the secretary includes reference to the reduction of the gold re- serve, which January 17 last stood at $69, 727, SPA, and the treasury balance, including current liabilities, but including the gold reserve and su ubsioiary and minor coiu, was SS3, ,961 4o2. He aludes to the excess of ex- penses over receipts, the impossibility of procuring gold for the reserve without re- sorting to the issue and sale of bonds, and consequent issue under the ''resumption actv of $50, ,0O0, GOO per cent bonds.
 On the 4th Of March. 1894, he shows the free gold in the treasury amounted to the suu Of $107, ,446, ,S02, which was the high est point which has been reached by tho reserve since resumption Of specie pay nscnts. The lowest was on August ', 1891, when, Mir. Carlisle says, ''by reason of withdrawals in the redemption of notes it was reduced to S52, 1S9, ,500. After that date it was slowly replenisned by voluntary ex- changes of gold coin for United States notes by banks, and by small receipts of gold in payment of dues to the government until the 14th day of November, 1894, when it reached the sum of s61 .S73 ,374.
 Reference is here made by Carlisle to the feeling of public uneasness indicated by the presentation of notes for redemption in gold by individuals and institutions not desiring II for export. The vast accumu- lation Of money at our financial centers and prevalent depression of business which has so reduced the rates of discount that inducsment to keep funds abroad, where better investments could be made, were much greater than in ordinary times.
 All this, says the report, taken with other facts, including the revenue inade- quate to meet expenses, made it necessary to again resort to the issue of bonds and proposals, therefore, were issued Novem- Der IA. The results of the proposal and the acceptance of single bid for fifty mill lions upon basis of 2.S7S per cent are mentioned, and the secretary says: .The proceeds of the sale of $5S. 538, 800 have nearly all been paid into the treasury, &C., cording to Inc terms of the sale. '
 Continuing, Secretary Carlisle says: "This tra nsactioD justified the opinion that 2h per cent bond, having a reasonable time to run, could probably have been sold at par, and certainly that per cent boud could have been disposed of al or above that rate.'
 He repeats the recommendations made in his last annual report, ''that in interest of the government and people, power be con- . l6freu upon tDe beCretaFy Ot tu6 treasury tO negotiate loans at lower rate of interest and for O shorter time than are now a- lowed. The existence of such authority ' he continues, "instead of increasing the pro Liabilities of frequent resort to that means of raising money, would have the 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 maintenance of the reserve, public confidence in the ability of the gov to 1ptl oD dam 6o upon it will be much stronger than under present circumstances. Besides the poll icy of limiting the government to the sale of an antiquated bond bearing a rate of interest wholly inconsistent with the existing state of public credit. and hav- ing longer time to run than is apparently necessary ct the date of it's issue, cannot be qualified upon any grounds of expediency or principle. Only bonds which the gov ernment has authorized to issue for any purpose" Secretary Carlisle ssys, "are described Tn the refunding act of July IA, 1870, passed nearly quarter of century ago, and since then the credit and resources of the country have so greatly improved that fiscal legislation of that period is wholly uusuited to the prerent situation.'
 He hopes that congress will amend the law so as to conform to the present require- ments of public credit and service. The secretary says: ''If mandatory leg islation which keeps large volume of gov ernment notes in circulation notwithstand- ing their repeated redemption in coin, and also imposes upon the government the ob- lIgation to maintain the parity of the two metals in respect to their purchasing and debt paying power, is perpetuated, it is evident that the treasury must remain in a position which will compel it to procure and furnish gold to all who demand 1t, whether they be our own citizens or citi- gems of other countries. At the same time 1t will have no lawful or regular means of obtaining gold except by issue and sale of bonds. The situation cannot be avoided without material changes in our laws re- lating to that subject.
 At some length Carlisle considers fea- tnre of this situation, in course of which He expresses his conviction that the inter- ests of the country require such changes in legislation as will dsconnect the govern ment entirely from the business of issuing Or reissuing circulating notes, and thus re- heve it's fiscal department from periodical Demands upon it's resources which, under kl. ut mn n