St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-01-16
Total liabilities

Total liabilities 1882, ,377, ,SS9 90
1t will appear from this statement
that the coin reserve has been reduced
to S74. lO9, l49, and 1t is evident from the
condition OF the treasury that the de-
partment will have no means to defrav
the ordinary expenses of the govern
ment unless large part of the pay
mentS are hereafter made out of that
fund. If this is done, the coin reserve
will be reduced by the first of February
to about S65.601, S64, sum wholly in
adequate fer the purpose for which it
was created. On account of this critical
condition of the treasury, | have CON-
sldered it my duty, in addition to the
earnest recommendations contained in
my annual report, to appear twice be-
fore your committee, and, after full
explanation of the situation. urge
paompt legislative action on this sub
ject.
With the permission OF the committee
have prepared ana presented for it's
consideration a bill which, if promptly
passed, would. in my opinion, meet ali
the requirements of the situation by
providing the necessary means for de-
fraying the public expenses and re-
plenlshlng the coin reserve to such an
extent as to assure the maintenance of
the parity OF all forms of United States
currency.
While this proposed measure of relief
has not yet been disposed of or consid-
cred by the committee, the great diff
ferences OF opinion which are known to
exist in both branches of congress con-
cerning the proprietY of granting addi-
tlonal or amended authority to issue
bonds bonds in any form or for any purpose
render it doubtful whether new legis-
l1tl0n IlnOn the Snhlpaf hn
secured in time to provide
the means which are imperatiyely
demanded i'll 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 sec
retary of the treasury by the act of Jan.
IA, 1875. but it has pot 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, [ have not been satisfied that
such an emergency as heretofore eX-
listed as would clearly justify their
issue. But the necessity for relief at
this time is so urgent and the prospect
of material Improvement in the tinan-
cial condition of the government is so
prOblematical that unless authority
TO issue and sell shorter bonds, or
other obligations bearing a lower
rate Of interest that that speci-
fed in the existing law, is
granted by congress at very early day,
l shall feel constrained by a sense OF
public duty to exercise the power
already conferred, to the extent at least
of providing an adequate coin reserve.
If this action should be taken, congress
ought, nevertheless, to provide promptly
for the deficiency in the revenues dur
ing the currency fiscal year, and will
from time to time advise your commit
tee of the condition of the treasury in
order that this subject may receive due
consideration. [ have the honor to be,
yours very respectfully,
j. q. CARLISLE, Secretary.
Section 307l of the Revised Statutes
provides that ''all stocks, bonds, treas
ury notes and other obligations of the
United States shall be exempt from
taxation by or under state or municipal
or local authority" On account of this
general statute, it was not proposed IN
the bill which the secretary of the
treasury laid before the senate finance
committee in the early part of last week
to make any provision concerning the
taxation OF the bonds which he is ask
ing congress to authorize him to issue.
The house of representatives, by a
rule adopted some time ago, has dedi-
Gated all its time until the goth of the
present month to the consideration of
the Wilson tariff bill, and therefore it
would have been impossible for the
secretary of the treasury to procure any
legislation in that body before that time,
and for this reason Secretary Carlisle
thought 1t necessary to make the appli-
cation first to the committee on finance
Of the senate, which he hopes will act
upon the measure in time to provide the
necessary means for the government.
The bill which is referred to In the
foregoing letter, and which he referred
to, Is as follows:
An act to amend section 8 of "An act
to provide for resumption of specie
payments" approved Jan. II, 1875.
Be it enacted by the senate and house
of representatives of the United States
of America, in congress assembled, that
section Of An act to provide for re-
sumption OF specie payments. approved
Jan. IA, 1875, be and the same is hereby
so amended that in lieu OF the descrip-
tions of bonds therein authorized, the
secretary of the treasury is hereby
authorized to issue from time to time,
as he may deemsneceSsary, aid in such
form as he may prescribe, coupon or
registered bonds of the United States
in denominations of S25 an1 multiples
thereof. redeemable in coin at the
pleasure of the Uuited States
after years from date, bearing
interest at rate not exceeding per
cent per aunum, payable quarterly IN
coin, and to sell the same at net less
than par in coin; and the proceeds of
such bonds shall be held and used to
maintain the parity of all forms of
money coined or issued by the limited
States, but the secretary of the treasury
is hereby authorized to use from time
to time such part of such proceeds as
may be necessary to supply deficiencies
i'll the public revenues during the fiscal
year 1894.
Section g. A sum sufficient to carry
the provisions of this act into effect is
hereby appropria ted out of any money
in the treasury not otherwise appropri-