Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-12-05
CARLISLE'S SCHEME.
Currency and Revenue Reforms Ad-
Yocat@ by the Secretary.
HIS ARGUMENT IN OUTLINE.
nate sitastioa-His Monetary Cir
culation Plan.

WASHINJTDN, II. Cs DccennefF ~
nv far the most interesting part OF the
rcport Of the Secretary OF the Treasury,
which was sent to Congress to-day, IN
the exhaustive attention paid by that
official to the condition OF the Treasury
and currency reform. In opening the
Secretary mentions that the excess Of ex-
r,ndituros over receipts during the last
escsi year was $50. sos, eco. and during the
0rst Eve months OF the present nscal year,
x1.15.S67. It is not believed, however,
he writes. that this difference between
receipts and expenditures will continue
i, the same proportion untl the close Of
che year. and accordingly he estimates
deficiency Of 100000 et that time.
while he further expresses the opinion
mat the present laws viii yield ample
r,yenue for the fiscal year 1856. as all
,scIr provisions will then be operative
and the prospective Improvement in the
business OF the country. II realized, win
ereltly increase the sources from which
t,xes are collected. and accordingly a
surplus Of SIS. Si4. $50 is estimated for that
year.
Nf hN|NANNuaA NNAho - 49,
oplnion conveyed in HIS last annual re-
port regarding the unsatisfactory con-
dition OF our financial legislation, and es-
r,clally 20 the issue and redemption Of
'r-ulating notes by the government, and
che inability OF the Secretary Of the Urea
s,rv. under existing laws. to make prompt
and adequate provision for the support OF
Ga. puhlic credit" The experiences OF
o.. p9st year have confirmed the Secre-
,arv's heretofore expressed views and he
lrscs upon Congress the necessity for
remedial legislation during the present
session.
THE SITUATION.
The Secretary then sets forth n state
upnt 81 the practical and unavoidable
results Of existing legislation, which, he
says. will demonstrate its injurious
,gects upon our financial affairs more
clearly than any argument that could
l. submitted. This statement by the
Secretary includes a reference 70 the re-
gurtions Of the gold reserve. which, Janu-
ary 18th last, stood AZ G ,151,S2L while
the Treasury cash balance. excluding cur
rent liabilities. but Including the gold re-
serve and subsidiary and minor coin, was
V.ei.4 02. He alludes 10 the excess Of
expenses over receipts. the impossibillty
Of procuring gold for the reserve without
r,sorting 20 the issue and sale of bonds.
and the consequent issue, under the re-
sumption act, of 100000 . per cent.
bonds.
ON the 9Th Of March, 1884,. he shows that
the free gold In the Treasury amounted
Il, the sum Of $lO7, 1852, which was the
hirlast point that had been reached since
March .. 1893. The lowest point reached
iy the reserve since the resumption Of
s.ac!e payments was on August 7, 1894.
when. Mr.. Carlisle says, by reason OF
Withdrawals in the redemption OF notes.
g. was reduced to t'2lS9,50O. After that
late il was slowly replenished by volun-
t.rv exchanges Of gold coin for United
states notes by banks, and by small re-
ce.pts OF gold in payment OF dues 10 the
government until the iith day Of Novem-
Der. 1894, when II reached the sum OF
Sol, S3,57i."
PUBLIC UNEASINESS.
Reference Is here made by Mr.. Carlisle
% the feeling Of puDlic uneasintss indi-
Gated by the presentation Of notes for re-
demption In gold by Individuals and In
stitutions not desiring II for export, the
vast accumulation Of money at our finan-
c'al centres, and the prevalent depression
OF business. which had so reduced the
rates OF discount that the Involvement 10
keep funds abroad where better Invest
ments could be made were much greater
than in ordinary times. All this, says
the report. taken with other facts, in
Guiding a revenue inadequate 70 meet eN-
ranscs. made II necessary 10 again resort
1, the issue OF bonds, and proposals
therefor were issued November ltth.
The results OF this proposal and the
accaptance Of a single bid for &O,OO0.OO.
upon the basis Of 2.s7S per cent, are
mentioned. and the Secretary says: TIT
proceeds Of the sale-&S,5SS 5c0-hoye near
IS al been paid into the Treasury, &C
c5rilng to the terms Of sale"
Continuing. Secretary Carlisle says:
This transaction justified the opinion
that a 2la-per-cent. bond, having a
r,as0nable time to ian. could probably
have been sold at par, and certainly that
a 2-per-cent. bond could have been dis
posed Of al or above that rate So, as
there is legal authority for SO doing, and,
as Mr.. Carlisle says, tine present state
81 our financial legislation compeis the
occasional exercise Of this authority he
repeats the accommodation made in his
last annual report. that in the interest OF
government and people power be cor
frrcd upon the Secretary of the Trea-
s.ry to negotiate loans at a lower rate
90 Interest and for a shorter time than
are now allowed.
PUBLIC CONFIDENCE.
"Ths existence OF such authority" he
continues. INSTEAD OF increasing the pro-
liabilities of a frequent resort TO that
means Of raising money, would hava the
C1ntrary effect, because. when IL Is known
that the Secretary Of the Treasury Is
clothed with ample power and facilities
% procure means for the maintenance OF
th- reserve, public confidence In the
ability Of the government to meet prompt
Is all the demands upon II VIII De
much stronger than under present
circumstances. Besides, the policy OF
limiting the government 10 the sale Of
an antiquated bond bearing n rate or
interest wholly inconsistent with the ex-
sting state of public credit, and having
q longer time 70 run than IS apparently
necessary al the date OF its issue, cannot
Q. JUSTIFIED upon any ST ind OF eXpe-
l.ency or principle.
The only bonds which the government
has authority 10 issue for any purpose
Secretary Carlisle says. "are described In
tie refunding act OF July ii, 1870, passed
nearly a quarter OF a century ago, ana
since then the credit and resources OF
thr country have 80 greatly improves
th4t the fiscal legislation Of that perlod
is wholly unsuited TO the present situa-
ton"
He hopes Congress will amend the law
q. as 10 conform TO the present require
Iu,uts Of public credit and service. Inc
Secretary says: "If the mandatory legis-
lauon which keeps a large volume OF
government notes in circulation VIII
standing their repeated redemptions IN
coin, and also imposes upon the govern
ueut an obligation 10 maintain the parity
q. The two metals In respect to their pur-
chasing and debt-payins power. Is per-
Ietlated. IL Is evident that the Treasury
must remain In a position which VIII COM
81 Il to procure and furnish gold TO all
who demand II, whether they be our own
citizens or citizens or subjects OF other
countries. At the same time II VIII V
%, lawful or regular means or obtaining
g,ld except by the issue and sale OF
bonds. The situation cannot be aVoideo
without material changes IN our laws
relating 10 that subject"
GOVERNMENT AND MONEY.
Al some length Mr. Carlisle considers
the features Of this situation, In the
course OF which he expresses his conVlc-
ton that the interests Of the country re,
quire such changes In legislation as Will
C~iscOnnect the government entirely from
ANH 4