Delaware gazette and state journal., 1895-12-12


cent in the same north Of 1891, and
S5la per cent in 1880. Percentage Of
payment, in Treasury notes has iisen
from 3ls in 1880 to 2S in 1901 and
5i.a in August, 1892. The Treasury
gold reserve bad fallen, since the pas
sage Of the silver.purchaso law,
Sia, 1888, 0l3, and had approached within
$40, 900, 600 OF the official danger-line.
The governments ordinary revenue had
decreased SIS, lA3, l9S sinca 1890; its
expenditures, with Harrison in the
White House, Reed in tine Speakers
chair, and Mckinley leader OF Con
gress, had increased SEQ, Oos, ,0l2, a net
difference Of Sl0S, 600, 600 to the bad in
two short years OF Republican admins
tration. And all this for the fiscal
year which ended in the week of MIR.
Cleveland's nomination at Chicago.
In the face of these documentary re-
cords and official statistics, the Tribune
calmly atiirms that ''the national policy
Of protection kept the Treasury forti-
fled with an adequate revenue and re-
serve down to the hour Of President
Cleveland's election.
ORIGIN OF THE TREASURY EMBARRAss-
MENT.
The national policy of protection
kept the Treasury fortified with an
adequate revenue and reserve down to
the hour Of President Cleveland's cleo
tion. II Tribune editorial, November
2lst, 1895.
[from tile Report Of President Harrison's secre-
tary OF the Treasury. Chas. Foster, presented
December ith, lS92.l
One of the embarrassments to the
Treasury, in the opinion of the Secre-
tary, is the inability, with the limited
amount of cash on hand above the
Sl0O, 600, 000 reserve, TO keep up suf-
ticient gold supply. When the demand
comes for the expectation Of gold the
Treasury is called upon to furnish il.
Ii this demand should prove to be as
large the coming year az il has been
for the past two years, gold in tho
Treasury would be diminished to or
below the reserve line.
The status of this reserve and its
amount have recently been subjects of
discussion. In the bank act of 1852
Congress gave expression to it's belief
that sl00, 600, GOO in gold was suitable
reserve, by providing that whenever
the amount of gold in the Treasury
should fall below that sum the issue Of
gold certificates should cease. In 1880
the then Secretary of the Treasury
adopted the practice of reporting S10O, :
600, 600 of the gold in the Treasury
as a reserve for the redemption Of
United States notes, '" and recently the
majority OF the judiciary committee of
the present House of Representatives
expressed the opinion that under exist
ing laws the maintenance of this reserve
is obligatory.
But if 800, 1000, 900 in gold was a
suitable or necessary reserve in 1882
and 1855, it would seem clear that a
greater reserve is necessary now. 1t
should be remember that since 1889 we
have added to our silver circula-
tion the sum of s259, DIG 1872 in standard
silver dollars coined under the old
silver act of 1878. These dollars are
nearly all outstanding, and largely
represented by silver certificates. We
have also increased the legal tender
paper circulation by issuing about Sl2O,
600, 900 of the Treasury notes authorized
by the act of July 14th, 1890, and to
this we are adding about "a, 600, 600
each month in payment of silver bullion
purchased.
1t is true that silver certificates are
not redeemable IN gold, and that
the Treasury notes Of 1890 are re-.
deemable IN coin; but since it has
been declared to be the established
policy of the United States to maintain
the two metals, silver and gold, on a
parity with each other, it is Obvious
that this large addition to our circula-
ton has Increased the possible charge
upon our gold reserve. In view, there.
fore, OF these increased and increasing
Liabilities, tho reserve in the Treasury
Tor the redemption 3f the government
obligations should, in my opinion, lie
increased to the extent Of at least 20
per cent Of the amount Of Treasury
notes issued and TO be issued under act
of July lIth, 1890.
AS will be seen by the estimates
submitted, the receipts Of the current
and the next fiscal year are not likely,
II present conditions continue, 10 fall
! below expenditures. Yet. in view of
the fact that the surplus for this year
VIII be small, upon the basis stated.
with the probability Of falling otf in
receipts for causes mentioned, | think
the revenues should be 30 iucrcagcd as
TO enable the Treasury Department TO
maintain a gold reserve Of not less than
sl25' COO 000, to maintain comfortable
working balance in the Treasury in
cash. As a general revision of our
customs laws is now probable, | do
not feel like suggesting any special
method for increasing the revenue,
though | should otherwise think tina,
an additional tax on whisky, which
could be collected without additiona
cost, would furnish an easy method.