Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-11-19
Senator Platt Reviews the Admins
tration's Financial Policy.
WHAT TEE LAST ADMINISTRATION LEFT
Amount Borrowed Sincs and That
Obtained in Exchange.
EXPENSES OVER RECEIPTS


II see that the administration has made
another call for bonds In my speeches
during tho campaign 1 predicted that such
would be the result. Democrats and re-
publicans alike in the audiences told
me that they thought that / was
talking through my hat The issue
of the call has verified my predic-
lions. l did not see how it could be other
wise. Yet 1t is a matter of continuing
wonder and will, undoubtedly, be a subject
Of continuing comment, that a bond call
was necessary in a time of profound
peace. The question will very naturally
be asked, What has become of the gold
reserve?'
What Was I'm the Treasury.
"On the LIST of March, 1881, the republi-
can administration transferred to Mr..
Clevelands administration reserved gold to
the amount of one hundred and three mil
lions of dollars. Since that time the Cleve-
land administration has borrowed, includ
ing premium. fifty-eight millions OF dol
lars. The treasury has obtained from the
New York banks by exchange twenty mil
lions Of dollars in gold. This is an aggre-
gate of one hundred and eighty-one mill
lions of dollars in gold, in round numbers,
which the Cleveland administration has
ceived since 1t entered into power. There
has been shipped from this country abroad
to October l. fifty-five millions of dollars. 1t
Is assumed that this latter sum came from
the Treasury Department.
what Should he and What II.
There should still be In the treasury, on
the basis Of these figures, one hundred and
twenty-six millions of dollars gold reserve.
But, at very recent date, the treasury
returns show that there is a reserve in the
treasury vaults of only about sixty-one
millions of dollars. The difference between
one hundred and twenty-six millions of
dollars in gold, which, according to the
figures above stated, should be on hand.
and the sixty-one millions of dollars act
ually in the treasury vaults, is sixty-five
millions of dollars"
Where is that sum of .sixty-five millions
of dollars?"
These figures are given in round num-
bers; but the exact amounts which would
very nearly approximate to this sum can
be ascertained in the warrant division of
the treasury department. ia
Used for Currc1,t Expenses.
THE probability is that this sixty-five
millions of dollars, which should in my
opinion, have been treated sacredy as a
gold reserve, has been used for current ex-
penses. Whether the gpvernment has any
right to use a gold fund, obtained in great
measure, under the specie resumption act,
to pay the current expenditures Of the
government, is a matter which may be
gravely questioned. The specie resumption
act itself would not seem to warrant the
use of any gold obtained from the sale OF
bonds to maintain the parity between our
various kinds of currency for the ordinary
expenditures of the government. But IL
appears that during the first fiscal year OF
this administration the expenditures eX-
ceeded the receipts by sixty mine millions
Of dollars. Since the end of the first fiscal
year OF the Cleveland admipistra the
excess of expenditures over receipts has
brought the deficit up to about ninety mil
lions of dollars. That is the sum which
this administration has expended over the
current receipts
ITO the LIST of September last the demo-
Gratis claim that the republicans were re-
sponsibe for this deficit, because 1t was in
CURED on account of republican appropria-
lions.
Deficit Under the Wilson Dill.
but the democrats passed the Wilson
BILL which they asserted would yield ade-
uuate revenue for all the necessities of
the government. Yet, during the months
of September and October, when the demo-
Gratis certainly could not claim that the
republicans were in any way responsible
for the expenditures, the democrats un-
der their own appropriations, and their
own tariff law, had a deficit of twenty
one millions Of dollars, being the excess
of expenditures over receipts.
Their income tax will not become avail
able until next July. They have yet
received nothing from the sugar tax. be-
cause the sugar trust, before the passage
of the law, secured possession of some
eight hundred thousand pounds of sugar,
| upon which they paid no duty. The gov
eminent may soon expect to receive some
duty from sugar.
Must Borrow Gold.
But there is no way in which the gov
eminent can get gold into the treasury
except by borrowing it, The payment for
customs in gold has practically ceased
The silver certificates, being a legal ten
der for customs, the customs dues are all
paid either in silver certificates or irs
greenbacks. Greenbacks could be refused
because by their terms they are not re-
celvable tor customs. But for the fact
that they can be Immediately exchanged
and silver certificates be secured for them
they are taken for customs dues. If any
body can conceive any way In which the
treasury can get any gold into the treas
| ury except by borrowing 1t, l should be
glad to be informed how it can be done.
1--WE have more than eight hundred mil
lions of dollars of legal tenders Outstand-
ing, which the government Is bound to
redeem at its treasury whenever present
ed. IT there is gold to go abroad, the
gold must generally como out of the treas
| ury. 1t has been suggested that certain
payments might be made in silver; but
the fact that the Secretary of the Treas
ury permitted the impression to get abroad
| that some Of the obligations of the gov
eminent might be paid in silver was the
direct cause of the alarm which preceded
the recent panic.
A Promise Not Fulfilled.
''The democrats promised, when the Sher-
man silver law was repealed to bring In a
bill to put the finances of the country
upon a sound basis. They never did 1T.
They never attempted TO do 1t. If, under
| republican administrations we had any
such conditions as now exist, with re-
spect to our finances, II would have been
signal for democratic attack all along
the line. The republicans have been so
overwhelmed with the danger of the stu
alton that they have hesitated to let the
people know what the situation actually
Driven Back to Old Methods.
Packers and commission dealers at Fres-
no, Cal. have started two freight wagons,