The Providence news. (Providence [R.I.]) 1891-1906, 1895-12-16
Secretary Carlisle Reports
Today.
An Extended Review of the
Nations Finances.
Greater Authority for the Dapart-
ment Strongly Advocated.

WASHINGTON, ID. c., Dec. 49, Secre-
tary Carlisle's annual report on the state
OF finances was sent 10 Congress today. 1t
shows that the revenues OF the govern
ment from all sources during the last
nscal year amounted TO 1890, 1913, 203. The
expenditures during the same period ag-
gregated Si33, 17s, 426. leaving a deficit for
the year of s12 sos, 223. AS compared with
the fiscal year OF 1894 the receipts for 1895
increased sl7, $40, 7o5, although there was
decrease OF ELL, ,329, 9s1 in the ordinary
expenditures which is largely accounted
for by a reduction OF Gil, 13i, 055 on sugar
Dounties. The revenues for the current
fiscal year are estimated upon the basis
OF existing laws, at S431, ,907, 407, and the
expenditures at s4ss, 907, 407, which will
leave deficit OF 1900, 900. For tho
coming fiscal year ending June 80, 1897,
the Secretary estimates the receipts at
s464793, l20, and the expenditures at s357, =
So4, 1873, for an estimated surplus OF s6,
O9o, 9l6 The secretary states briefly the
facts concerning the issue OF bonds during
the year, the particulars of which have
already been reported TO Congress.
The Secretary devctes large share OF
his report 10 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.
The cash balance in the treasury on
the first day OF Decem ber, 1895, - he says,
Twas sl77, 406, 1885, being S9S, or, 420 in
excess OF the actual gold reserve on that
day, and s77, s05, $50 in excess OF any'sum
that 1t would be necessary to use for re-
plenishing that fund in case the Seer etary
should at any time be able 10 vsschange
currency for gold. There is, therefore,
no reason to doubt the ability OF govarn-
ment to discharge all its current obliga-
tions during the present tiscal year, and
have barge cash balance at Its close,
without imposing additional taxation in
any form upon the people, but / adhere
TO the opinion. heretofore expressed, that
the Secretary of the Treasury ought al
ways to have authority TO issue and sell,
or use in the payment of expenses short
time bonds, bearing a low rate of interest,
to supply casual deficiencies in the reve-
nue.
Continuing. be says: "The large with
drawals of gold in Decem ber, 1894 and
in January and the early part of Febru-
ary, 1875, were due almost entirely to
feelings OF apprehension in the public
mind, which increased in intensity from
day to day until il nearly reached the pro-
portions OF panic, and il was evident to
all who were familiar with the situation
that, unless effectual steps were promptly
taken to check the growing distrust,
the government would be- compelled with
in few days to suspend gold payments
and drop TO a deprecated silver and paper
standard. More than s43, 0J0, 0O) OF the
amount Withdrawn during the brief Pc
riod last mentioned was not demanded
for export, but was taken ont by people
who had become alarmed on account OF
the critical condition of the treasury in
its relations TO currency OF the country.
The purchase Of 3, 500. COZ ounces OF gold
followed, II being the contract that no
less than one-half OF the geld was to be
procured abroad, but after large part
of the gold had been furnished from
abroad the Secretary in order TO prevent
distur rbance la the rates of foreign ex-
change az critical period and avoid q
condition which would force gold exports
and consequent Withdrawals from the
treasury. acquiesced in II departure from
the literal terms OF the contract, that
one. half OF the coin should te procured
abroad, ana accepted deposits OF gold
then held in this country to complete the
delivery. Ordinary prudence demanded
that the success of the plan to protect
the treasury against Withdrawals should
not be endangered by insisting upon a
strict compliance with all the RENTS of
the contract, especially as tho Government
could susstin no loss, and the whole
amount of gold stipulated for was Sc
cured.
"The amount OF bonds issued under this
contract was S62, 3l5, 400. the amount of
gold received was sos, 116, 2iO g.
"The safety OF the existing situation is
constantly Inensced and our further prog
ress toward a complete restoration of
confidence and prosperity is seriously inn
peded by the defects in our currency laws
and the doubt of uncertainty still pre-
vailing in the public mind, and espco-
tally abroad, concerning the future none
lary policy OF government. Until these
defects In our laws are remedied ana the
doubts removed. there can be no satisfac-
tory assurance OF immunity from period
ical disturbances growing out OF the obli-
cations which the Government has been
compelled to assume in relation TO the
currency.
"The issue OF bonds 10 pro-
cure 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 pres
ent policy, are changed, ultimately result
in the creation of public debt much
larger than would be required TO retire
and cancel all the notes. and the annual
interest charged would be much greater
than IL 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 madcto
keep the United States notes and treasury
notes permanently in circulation by re-
issues after redemption, and the Govern
ment Is to be permanently charged with
the duty OF sustaining the ynlne OF all
our currency, paper snd coin alike, the
conclusion cannot be avoided that the
policy OF issuing bonds for the accom-
plishment OF these purposes, must also b, =
come permanent, aud such additional
powers must be conferred upon the Sccre-
tary as will enable him 20 execute the
laws relating TO these subjects with the
least possible disturbance OF the business