The Portland daily press., 1895-06-29
THE GOLD AESERYE SAFE.
The Syndicate Bound to Afforl Pro-
lection Until October.

The Condition OF the Treasury Discussed
by a SLENDER of the Administration
July win Witness Some Heavy Inroads
but the Deficit Has Been Greatly Re
duced.
Washington, June 27. There will be
heavy draft upon the Treasury next
month. p" said a prominent member of the
administration today in discussing the
finances of the government in connection
with the final payment on the last issue
of bonds by the Morgan Belmont syndi-
cate. "You see, :" said he, ''the new fiscal
year begins then, and the Secretary of the
Treasury will be called upon to supply
every branch Of the government with
funds in accordance with the provisions
of the annual appropriation bills The
pension claims. the bounty on sugar, and
the interest on the various government
securities must also be considered; hence
it will be seen that during the month of
July there will be heavy run upon the
funds now so carefully guarded in the
Treasury"
lures have upon the gold reserve, II anyi''
he was asked.
None whatever, - replied the official,
f'unless the demand should come from
abroad. In that case the Morgan Belmont
syndicate are under contract with the
government to protect the gold reserve
from foreign encroachInent until next
October.
''There appears to be general misun-
derstanding as to the status OF the Nor
gan Belmont bond syndicate since It's
final payment was made yesterday Judg-
ing from the various telegraphic inquiries
that have been received at the; Treasury
Department today. Although the Morgan
Belmont syndicate have paid S65, ll6 215
for s62 315, 400 in four per cent bonds, the
syndicate is still under obligation to
stand between the government and those
who attack the gold reserve until October
next.
''No one but the members of the syndi-
cate " continued the official, ''wlll
probably know what it has cost to protect
the gold reserve since the Syndlct Vie
entered into its contract with the govern
ment Thus far its work has been sue
cessfully done, and there has been no at
tempt to raid the gold vaults of the
Treasury. Many persons in Congress and
on the outside were, vigorous IN their
denunciation of the contract when 1t was
originally made, because the bonds were
syndicate may have made large profit
out of the transaction or it may not. The
fact its that the Treasury has been re-
lieved from the heavy and demoralizing
drain upon its gold reserve, And in the
meantime there has been a gradual in
crease in the general business of the
country, which has resulted in q slow
but steady improvement in the condition
of the treasury. Some of us who thought
the contract with the Morgan Belmont
syndicate almost a crime must now admit
that the syndicate has thus far kept its
obligation to the letter, and by so doing
has produced a quieting effect upon the
financial situation throughout the
country What the effect will be after
the contract with the syndicate expires in
October next is m after of conjecture. -
''How are the finances Of the govern
ment now as compared with a similar
period in the last fiscal year?"
''Yhey are in much better shape now.
At the beginning of the present fiscal
year, which terminates practically next
saturday night, there was a deficit OF
over SO, 600 900. AT the beginning of the
next fiscal year, which commences next
Monday, the deficit will not be over $40,
900, 000''
'What was Secretary Carlisle's esti-
mated deflcit?''
HE said it would be about $50, 900, O00
When he prepared his estimates he was
counting upon receiving from $1S 900, 900
to $35, 900, 900 from the income tax. That
he is now deprived of; besides, there has
been falling off in the receipts from
sugar because of the reduction in the
price of that article. The difference in
the receipts between the ad yalorem duty
and a specific duty has deprived the gov
ernment Of from five to seven millions of
dollars duty during the present year.
When you deduct what was expected from
the income tax and the loss from sugar in
connection with the actual deficit, it will
be seen that the Secretary was not as far
out of the way in his estimates as is
generally supposed. Say the returns from
the income tax would have been, if col
lected about $15, 900, 600, and the duty on
sugar, s., 600, 900, that would have re-
duced the present deticis down to S25, 900,
600.
All things being considered the daily
receipts at the Treasury show a gradual
increase all along the line. As 1 said be
fore there will be heavy demand fol
funds next month, because it is the be-
ginning Of the new fiscal year. The sugar
bounty may not be paid during July, be-
cause it may take more than month to
adjust the claims Of the various sugar in
dustries.