New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-12-17
PART II.
PAGES 10 TO IS.
CARLISLE'S REMEDY.
rrsT OF THE TREASURY REPORT.
x,r SUGGESTS RETIRING LEGAL TENDER
NOTES AND ISSUING GOLD BONDS

.ur GOVERNMENT SHOULD BE RELIEVED FROM
THE RESPONSIBILITY OF PROVIDING A CREDIT
cr.RREScY-NATIoNAL BANKS SHOULD RE
AUTHORIZED TO ISSUE NOTES EQUAL IN
AMOUNT TO THEIR BOND DEPOSITS.
washington Dec. 16.-The Secretary of the
rrreasury to-day sent his annual report to the
president. The part Of the report which refers
81 National finances is as follows:
A, the beginning of the fiscal year July l. 1894.
.,e cash balance In the Treasury excluding all cur
cent liabilities. but including a gold reserve OF
Sas7 O24 o. S17.5s4 s3s lS and at the close OF
che wear June so 1895. the cash balance. excluding
al current liabilities, but including gold reserve
., y5oeoooo. was Ss5.2@15a ST. showing increase
S Ssee s.d during 1i the yssr against
@ oS Tssspfs during ~ the n sea ' year 1895
were g56s s.o55 IS greater than the receipts curing
tne ~ n = less than during the year 1894 The
erue derived from customs during the hsSai yea
u.s. rs sS'Seos. by the sum Of s2Cs4oOsS S. but the
receipts under the Internal Revenue laws ahn rom ba
previous year so that The net increase OF revenue
Was Sc 5is 055 Sc. as above stated
IT SEEMED TO BE WELL FOUNDED"
I, the income provision contained in the Act
=, Angus. s. 1894 had been sustained by the courts
a. e ha,,svea that the deficiency for the year would
M, have exceeded the amount estimated in my last
s,nua. report In that report the opinion was ex-
messed that The laws then in force would not only
80 an ample revenue during the fiscal year 1886
a., that there would be a surplus % SIS N0uv THIS
opinion was based upon the suppositon' which
~, seemed 70 be vel. founded that all the
sources Of revenue provided in the act Of August
q .ss4 would De available. and that. owing 70 the
ms ana some other articles. the receipts under
the Internal Revenue AVS woHG of N. SUPREME
Court holding The s tax 5sc iSst tse r 90
ron internal revenue did not increase as antc-
1aea but actually fell on ~ -, d"Tng 5ns
wear. notwthstsnding the higher rate imposed on
splrl;s and oner artces at We SUMMON that there
W be- a deficiency Of about $iooooeO during the
current dscai year
THE ENDLESS CHAIN" THEORY.
Discussing the endless chain" theory Of the
refcency. the Secretary says:
The total excess OF expenditures over receipts
ron July 1885 10 December !. 1888, was s!SV,.
t23 ana Of this sum 81 ~ go IS was paid oGt OF
a., 10 ana the remainder has been supplied by me
rnted sIStss no s5d AH6 mus Teseea into the
'T,easury in exchange for gold coin The sct OF
Ma g. ~ pTo 1eee rHd' oT b, received into the
-rsas,irv under the law. from any source whateveT
a. S s'i rs.ired cancelled or destroyed; but the
snail be reissued and pad OUT gam ana kept !" 0'
it clear that when any Of these notes have been
sew furd. bur become par; OF the genera cash
q the ma3ey to Oe be His to the the Cow
n.a!,lsI SvSare,.er they could. by exchanges be
,sss - procure soid for the replenshment OF The
use stev nave been so applied but when this
could NOT be done hey have peen trea5ta as ~
- rn6i.c exuenses None OF my predecessors IN
of r. have ever made any distnc1ion oeJ"rem sn 1s
49, notes presented by TIE holders and redeemed In
con bur sucn have been used ,adlscrimnad'e
~ ne ina exgercies OF the public service required
Authority FOR RESISTING THE NOTES.
Secretary Carlisle quotes in support Of this
.,~.-..stt,or the renort of Secretary sherman FOR
-e-7 which led 10 the lsw of Congress enacted
NV q 1878. making II mandatory upon the Sec
re.ary Of the Treasury TO reissue the notes
snce n, passage Of nat act the Tsnt and fbs d4 6
20 tender Toies no matter now received INFO the
,Ss@ssury. provided they belong 10 the United
30 es ~ me Treasury notes issued under the ST.
ver I chesng act they must oe resSusI d anu lrer
65ars must DE issued in Their pisce for II TINS
%, such notes Outstanding than the cost OF the
sEe' p1''n m 5-ia In he Treasury and ths condi
+ior is expressly prohibited by the stature u1oer-
Whether these notes ressued. or destroyed and
stardsri silver dollars substituted for them. the
secretary would be using notes redeenee IN N goo 700
Tor the payment Of the orn naye SYf the notes
G. reserve furd IN account OF their cancellation ana
;hen paving oct TIE sl-'eT'
Discussing the prospect Of revenue and expen-
eit,,r-s coming together in the future the Score
;ary SAYS:
The balance ths TFta as Se0 SR ss 81 S1S
y. ~ ne ar-;al gold reserve that day, and
81 .Ss:6 IL excess Of any sum that II Touid De
Inc Secretary should a, any. time be able TO ex-
change currency for s oa; ~ I5e t;overTment to
disc5arge all is current obligations during the
present c hssa without mbosns additional
in any form upon the people, but a9here 10 'he ne
.pn'iTTr reasry ought always have authority TO
ISSUE and sell or in the payment OF exAenses;
snDpiy Usual deficiencies in the revenue
THE sTRlCTEsT ECONOMY NECESSARY
While the situation does not require any es's
laton FOR raising additional revenue by taXa'ioh a.
this time IL is such as TO require INC e''0'
economy in appropriations and pubic expenses
Nearly every appropriation IS in terms or py Ne
gary Implication direction 10 tns eiSerefore the
thorities 70 expend the money az a5nton of ex-
penses tests primarily and mainly upon Business
With a complete return 70 ne n orn.ai sspisIatiye
conditions OF the country. and proper legs Inc
and executive supervision over eXlenu.u Union e
yed ample means Tor lhe support Of the md pn nDn6
service upon the OASIS 10" "a 10 tustidad tnat
The progress now being made to ~a.u u I'm con.
,'nue without serious interruption; II is @ %
;hat there will be surplus OF nearly S''VV0 e
the nsea' A dscsI Years 1884, anu 1895 the ordinary
expenditure 90 % 5ne compared With the fiscal year
lse3 ana il il believed that with the ME in the
SongreSs ,boni nparing the efficiency Of the pubic
service 1870. ,c-,-rc
IN regard TO the bond issues Secretary O@''''''
says: -,
Between the LIST day Of February: ios' Of bonds
49, Ssv Of March 1885, three issues % 30 ~
Were made amounting IN the aggregate 10 co~ni Of
40 The navments into the Treasury on euDnIe,e d
~ second b1nd sale not entlreiy I'D ~
untu after the LIST day of December, lof had not
sou Sscsrne evident that the TRANSACTION "a o. The
bsen enectual 10 stop the drain OF you rsduced
sfE he
c." s 0i 30 is ana ssverai millions more haa oe d
70 st.SfVii'4 Ia, of which taken OUT ais