The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1894-12-12
THE TREASURY.
Secretary Carlisle Submits His
Annual Report.
A New National and State Bank Currency
Scheme-Causes Leading to the Bond
Issue Revlewed-Suggestion to
Congress In the Interest OF
Monetary Reform.

cial to the condition of the treasury
and currency reform.
In the opening the secretary mentions that
the excess of expenditures over receipts dur
ing the last fiscal year was $69, ,S03 260, and dur
ing the first five months of the present fiscal
year l2t ,737, ,36702. 1t is not believed, however
he writes, that this difference between receipts |
and expenditures will continue in the same
proportion until the close OF the year, and ac- |
cordingly he estimates deficiency OF S2O, OOO,OOO
at that time. While he further expresses an |
opinion that present laws will yield an ample |
revenue for the fiscal year 1895, as all their
provisions will then be operative and the pros
pective improvement In the business OF the
country, II realized will greatly increase the
sources from which taxes are collected and ac-
cordngy Il surplus of $28,8l4920 is estimated
for that YEAR
The secretary recalls attention to the opin-
ions conveyed in his last annual report regard
ing the unsatisfactory condition OF our tinan-
cial legislation and especially to the issue and
redemption Of circulating notes by the govern
ment and the inability Of the secretary Of the
treasury, under existing laws, to make prompt
and adequate provision for the support OF the
public credit. The experiences OF the past year
have confirmed the Secretary's heretofore ex-
pressed views, and he urges upon congress the
necessity for remedial legislation during the
present session.
The secretary then sets forth a statement Of
practical and unavoidable results of existing
legislation which, he says, will demonstrate It's
injurious e1ects upon our financial affairs more
clearly than any argument that could be sub
mitted. This statement by the secretary in
cludes references to the reductions Of the gold
reserve which on January II last stood at S69,-
nd ha tran n pngh hnlnuPa aYplu1-
ing the current liabilities but including the
gold reserve and subsidiary and minor coin, was
SS3, ,961 402.
He alludes to the then excess of expenses
over receipts, the impossibility of procuring
gold for the reserve without reSorting to the
issue and sale Of bonds and the consequent
issue under the resumption act Of $50, 900, 900
per cent. bonds. On the 9th Of March, 1894 he
shows the free gold In the treasury amounted
to Sl07, ,446 s02 which was the highest point that
| has been reached since March %, 1898. The
| lowest point reached by the reserve since the
resumption of specie payments was on August
| 7, 1894, when, Mr.. Carlisle says, by reason Of
| Withdrawals in the redemption of notes 1t was
reduced to $50 1S9,50O. After that date it 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 government until the l4th day OF
| November, 1884, when 1t reached the sum Of
e1,S7S37L
| Reference is here made by Mr.. Carlislet to %
| feeling OF public uneaSincss indicated by the
| presentation Of notes for redemption in gold by
individuals and institutions not desiring 1t for
export the vast accumulation Of money at our
financial centers and the prevalent general de-
preston Of business
All this, taken with other facts, including q
revenue inadequate to meet expenses, made il
necessary to again resort to the issue OF bonds
and the proposals therefor issued November II
are indicated In this immediate connection
The results Of this proposal and the acceptance
OF u single bid for the fifty millions upon the
basis Of 2.87s per cent. are mentioned, and the
secretary says that the proceeds of the sale
tbS, 800, have nearly all been paid into the
treasury according to the terms of the sale.
Continuing, Secretary Corlisle says Thi,
transaction justified the opinion that 2h POI
cent bonds, having reasonable time to run
could probably have been sold at par and GER
tainly that o per cent bond could have beef
disposed Of at or above par at that date; so, al
there is legal authority for so doing, and as Mr.
Carlisle says, the present state Of our fnancia
legislation compels its occasional exercise h,
repeats the recommendations made in his las
annual report, that in the interest of the gov
ernment and people, power be conferred upol
the secretary OF the treasury to negotiate loan
at lower rate of interest and for a shorte
time than are now allowed.
The existence of such authority. he con
tinues, instead or increasing the probabilitie
of a frequent resort to that means OF raisin
money would have the contrary effect, becaus
when It is known that the secretary OF tn
treasury is clothed with ample power and facil
81 fnr . fhn ns.,Nn.
the reserve public confidence In the ability @
the government to meet promptly all demand
upon it will be much stronger than under pres
ent circumstances Besides the policy of lin
| iting the government TO the sale Of an anti
quated bond bearing rate OF interest who'll
inconsistent with the existing state OF the pub
lie credit and having longer time to run tina
is apparently necessary at the date Of its issu,
cannot be justified upon any grounds Of expe
diency or principle.
The only bonds which the government no
has authority to issue for any purpose, Secre
= tary Carlisle says, are described in the refund
ing act Of July IA, 1870, passed nearly quartz
of a century ago, and since then the credit IN
resources Of the country have so greatly in
proved that the fiscal legislation Of that perio
is wholly unsuited to tho present situation
He hopes congress will amend the law so
W COulUIul w plCSShI VI Juc pul
lie credit and service
The secretary says II the mandatory legisli
tion which keeps large volume Of governmel
notes in circulation Notwithstanding their II
peated redemptions In coin and also impoS,
upon the government On obligation to mainta
the parity Of the two metals In respect to the
purchasing and debt paying power, is perpet
ated, It Is evident that the treasury must r
main in q position which will compel it TO pr
cure and furnish gold to all who demand
whether they be our own citizens or citizens
subjects Of other countries At the same tin
It will have no lawful or regular means OF o
tanning gold except by the issue and sale
bonds and the secretary says the situation ca
not DO avoided without material changes in o
laws relating to that subject.
At some length Mr.. Carlisle considers 4
features Of this situation in the course Of viii
he expresses his conviction that the interes
Of the country require such changes In legisl
tion as will disconnect the government entire
from the business Of issuing or reissuing circ
latinR notes and thus relieve Its fiscal depaI
nent from the periodical demand upon its
sources which, under the existing system, mi
continue to disturb the financial and genel
business affairs Of the people
\ The secretary presents q plan which wo,
relieve the government from some Of Its b,
dons, secure o safe and elastic national o
state bank currency and result ultimately
the permanent retirement of United Sta
legal tender notes OF both classes The featu
OF this plan include the repeal Of all laws
A, thorizing the deposit OF United States bonds
% security for circulation, permission TO natio
banks under certain requirements to Isl
ID, notes to an amount not exceeding 70 per ce
10. Of their paid up capital; requiring each
W tional banking association TO redeem its no
ent at It's own ofice providing safety fund
OF the immediate redemption Of the circulat
.ns la notes OF failed banks; repeal Of laws mpos
cir- restrictions upon the reduction and increas'