The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1895-12-17
CARLISLE'S REPORT.
An Urgent Plea for the Retirement
Of the Greenbaoks.
CAUSE OF THE MONEY sTRINGENoY

OAUph VI lib MUNh1 SIHlNGhNU1
The Secretary of the Treasury Declares
That the striking Out of the Income Tax
Is Responsible-Our Present System of
Finance False One
WASHINGTON, Dec. 17.-Secretnry Car
isles annual report on the state of the
finances was sent to congress yesterday 1t
shows that the revenues Of the government
from all sources during the last fiscal year
amounted to $3.50 1873, 209 The expend-
itures during the same period aggregated
S433, IFS, 1926, leaving a deficit for the year
of 81, S95, ,223. As compared with the fiscal
year 1894, the receipts for 1895 increased
slT570, 705, although there was n decrease
of Sl1 ,320, 9S1 in thesordinary expenditure,
which is largely accounted for by reduc
tion of Sl1, ,055 on sugar bountes. The
revenues for the current fiscal year are esti-
mated, upon the basis of existing laws, at
S481, ,9O7 407, and the expenditures at S44S,-
007, 407, which will leave deficit of ST.,
100000.
For the coming fiscal year ending June
80, 1897, the secretary estimated the re-
ceipts at 1854 7g3, 100 and the expenditures
at S457, ,SS4 1872, or an estimated surplus of
81, 454 ,926.
The secretary devotes large share of
his report to discussion of the condition
of the treasury and the currency, in the
course of which he makes an exhaustive
argument in favor of the retirement of the
greenbacks. Heexpresses the opinion that
the secretary of the treasury ought always
to have authority to Issue and sell or use
in the payment of expenses short time
bonds bearing low interest to supply
casual deficiencies in the revenue Re
ferring to the cause of the existing strin
gency he says;
Income Tax Would Have Made a Surplus.
"If the income tax provision contained
in the act of Aug. 29, 1894, had been sus-
talned by the courts it is believed that the
deficiency for the year would not have ex-
ceeded the amount estimated in my last
annual report. In that report the opinion
was expressed that the laws then in force
would not only yield an ample revenue
during the fiscal year 1896, but that there
would be surplus of nearly $29, 900, 600.
This opinion was based upon the supposi-
tion, which then seemed to be we'll founded,
that all the sources of revenue provided in
the act of Aug. 2s, 1894, would be available,
and that, owing to the higher rate of tax
alton imposed upon distilled spirits and
some other articles, the receipts under the
internal revenue laws would be very con-
siderably increased, but the decision of the
supreme court, holding the income tax
provisions of the act TO be unconstitu
tional, and the fact that the receipts from
/ internal revenue did not increase as antic-
| ipated, but actually fell off S3,6s9 $50. 70
during the fiscal year 1895, as compared
with the previous year. notwithstanding
the higher rate imposed on spirits and
other articles, have greatly altered the
situation, and / am now of the opinion
/ that there will be deficiency of about
/ $17, 900 900 during the current dscaI year. -
Assuming that there will be a complete
return to normal business conditions, the
revenues the secretary says, will, under
existing laws, be sufficient and probably
/ will leave surplus of nearly $1,000, 900 in
the fiscal year of 1897. The secretary be-
lieves expenditures may be further reduced
without impairing the efficiency of the
public service.
/ The secretary describes in detail the
/ circumstances leading up to the gold syndi-
cate contract, declaring it was necessary
to prevent a panic. A large part of the
/ gold had been furnished from abroad by
the syndicate. The beneficial effects of
this transaction, the secretary says, were
felt Immediately, not only in this country
but in every other having commercial re-
lations with us. Confidence in our secur-
/ tiles he continues, was at once restored
and these encouraging indications of in
creasing prosperity still continue and it
| is reasonably certain that, if our progress
| is not checked by repetition of large de-
mands upon our resources, or by failure
to meet the just lpectations of the people
in respect to the reformation of our fiscal
| system, we are entering upon an era of
material growth and development not sur
| passed in our history
Issue of Bonds to Procure Coin.
"The issue of bonds to procure coin for
the reserve, which is the only effectual
method now available under the law, will,
unless conditions which have already been
developed by the present policy Rre rad
ically changed, ultimately result in the
creation OF "a public debt much larger than
would be required to retire and cancel all
the notes; and the annual interest charged
will be much greater than it would be
necessary to incur on n new class of bonds
adapted to the present circumstances of
the government, and the well known
preferences of investors. If, however, an
attempt is to be made to keep the United
States notes and treasury notes perma-
nently in circulation by reissues after re-
demption, and the government is to be
permanently charged with the duty of
sustaining the value of all our currency,
paper and coin alike the conclusion can
not be avoided that the policy of issuing
bonds for the accomplishment of these
purposes must also become permanent
/ 81 am thoroughly convinced that this
/ policy ought not to be continued, but that
/ the United States notes and treasury notes
/ should be retired from circulation at the
earliest practicable day, and that the gov
ernment should be wholly relieved from
the responsibility Of providing credit
currency for the people. 1t would be diff
cult, if not impossible, to devise a more in
convenient, expensive or dangerous sys-
tenn than the one now in operation under