Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1895-12-21

|
revenue during the fiscal year 1895, but tha
there would be surplus Of nearly $50, 900 ,0OO
rms opinion was based upon the supposition
which then seemed to be well founded, that al
tne @ sources ss o. o. revenue provided in the act o
owing to the higher rate Of tax
alton imposed upon distilled spirits and som,
other articles the receipts under the interna
revenue laws would be very considerably in.
creased; but the decision Of the supreme court
holding the income tax provision OF the act L
be. unconstitutional and the fact that the re
ceipts from internal revenue did not increas,
as anticipated, but actually fell off O. $50 500 II
during the fiscal year 1905, as compared will
the previous year, Notwithstanding the highel
rate imposed on spirits and other articles
have greatly altered the situation, and an
now OF the opinion that there will be de-
hclency OF about $l700O,000 during the curren
| fiscal year.
Discussing the endless chain" theory
OF the deficiency, the secretary says:
| The total excess Of expenditures over re.
ceipts ~ from on Jul July !, 1898, to December /, 1895
| was paid out of the balance on hand at this
date in excess Of $l0000O,OOO and the remain.
der has been supplied by the use OF United
states notes and treasury notes presented fol
resumption; @ and thus received into the treas
May VI, 1873, provided that when any
United states note may be redeemed or re-
ceived into the treasury under any law. from
any source whatever, and shall belong to the
united states, and they shall not be re-
tired, Cancelled or destroyed, but they shall
be reissned and paid out again and kept in
circulation
1T is clear that when any OF these notes
have been redeemed they do not constitute n
part OF the reserve fund, but become part of
the, general cash assets OF the treasury.
TO be used in the same manner as
other money belonging to the gov
eAment. whenever they could, by ex-
changes, be used to procure gold for the
replenishment OF the reserve. they have been
SO applied. but, when this could not be done.
they nave been treated as available funds in
the treasury and reissued in payment Of public
expenses. None OF my predecessors in offlce
have ever made any distinction between the
notes received in payment OF tho ordinary
revenue and notes presented by the holders
ana redeemed In coin but such notes have been
used indiscriminately as the exigencies of the
public service required
Secretary Carlisle quotes in support
of this proposition the report of Secre-
tary Sherman for 1877, which led to the
law OF congress, enacted May 81, 1879,
making it mandatory upon the secre-
tary OF the treasury to reissue the
notes.
Since the passage Of that act, he says, the
"
to reissue the old legal-tender notes, no matter
how received into the treasury, provided they
belong to the United States. has never been
questioned in any quarter, and, as to
purchasing act, they must be
relssued when redeemed in gold,
or, II Cancelled standard silver dollars must be
issued in their place: for II this were not done
there would be 4 smaller amount of such notes
outstanding than the cost of the silver bullion
and the standard silver dollars coined there
from and held In the treasury, and this condi-
tion is expressly prohibited by the statute un-
der which the notes were issued. Whether
these notes are reissued or DESTROYED and
standard silver dollars substituted for them,
the practical result is the same, for
In both cases the secretary would be
using notes redeemed In gold for
the payment or the ordinary expenses OF the
government; In one case, by paying out the
notes themselves and In the other, by drawing
silver from the reserve fund on account OF
their cancellation, and then paying out the
silver"
Discussing the prospect of revenue
and expenditures coming together in
in the future, the secretary says:
"The cash balance in the treasury on the first
day OF December. 1895, was cir, ,406. $50, being
s9s 40 in excess Of the actual gold reserve
on that day. and 1856 In excess OF
any sum that it would be necessary to
the secretary should at any time be
able to exchange currency for gold. There is,
therefore, no reason to doubt the ability OF the
government to discharge all its currency
ooltgations during the present fiscal year and
have large cash balance at its close without
imposing additional taxation in any form upon
the people; but adhere to the opinion, here
tolore expressed, that tho secretary OF the
treasury ought always have authority to issue
and sell. or use In the payment OF expenses
n 1nyr to NJ i,,tar
est. to supply casual deficiencies in the rev.
enue.''
The secretary advises the strictest
economy in appropriations and public
expenditures. The revenue laws now
in force will, he believes, yield ample
means for the support of the public
service upon the basis now established,
and an estimated surplus of nearly
100000 during the fiscal year 1897.
During the fiscal years 1894 and 1898 the Or
binary expenditures Of the government have
the fiscal year 1888, and 1t is believed that with
the corporation of congress, further reduc-
tions can be made In the future without i'm
pairing the efficiency Of the public service"
In regard to the bond issues. Secre-
tary Carlisle recites that:
There were three issues Of bonds between
February |, 1894, and March Is, 1906 The pay
ments into the treasury on account OF the sec
ond bond sale were not entirely completed un-
I'll after the first day Of December, 1894. and 1t
soon became evident that the transaction had
not been enectual to stop the drain OF gold
The large Withdrawals In December, 1891. and
in January and the early part OF Februay 1885,
Of apprehension in the public mind,
which increased In intensity from day to
day, until 1t nearly reached the propor-
tions OF panic, and 1t was evident that, un-
less steps were promptly taken to check the
growing distrust, the government would be
compelled TO suspend gold payments and drop
to deprecated silver and paper standard.
Congress having failed to make any other pro-
vision for meeting the emergency n contract
1856, for the purchase Of Of s5oSooo OUNCES II
gold coin. at the price OF sl760Hl per
ounce, to be paid for by the delivery OF United
States bonds, having 30 years to run, and bear
ing 4 per cent. interest BY the. terms Of the
contract n0t-ess than one-half Of the gold was
to be procui ed abroad.
mo gold was taken from the treasury to be
used In paying for the bonds, as has been done
In the two former cases. nor was any with
drawn for shipment until after the delivery
had been completed under the contract.
After large part OF the gold had been
from abroad, the secretary. In order
TO prevent disturbance In the rates Of foreign
exchange at . critical period, and avoid 9 con.
Withdrawals from the treasury. ac-
Quiesced In the departure from the literal
terms Of the contract, that one-haf Of the |
coin should be procured abroad, and accepted |
complete the delivery"
Detailing the amount Of bonds issued
and gold received, the secretary pro- |
ceeds as follows: