Freeland tribune. (Freeland, Pa.) 1888-1921, 1895-12-19
EC0nOMYISNECESSARY
Secretary Carlisle's Report
to Congress.
Recon- mends the Strictest CurtaiI-
E ment of Appropriations and the
yRetirement of Legal Tender
Notes-A Deficiency, But No Moro
Revenue Is Needed.

Washington, Dec. 1.-THE annual
report of Hon. John G. Carlisle, secre-
tary of the treasury, was sent to con-
gress yesterday afternoon. The most
important points contained in it are as
follows: "If the income tax provision
contained in the act of August 2s,
1894, had been sustained by the courts,
it is believed that the deficiency for the
year would not have exceeded the total
estimated in my last annual report. In
that report the opinion was expressed
that the laws then in force would not
only yield an ample revenue during the
fiscal year 1896, but that there would
be surplus of nearly 500, 100000.
No Cause for Alarm.
"The cash balance in the treasury on
the 1st day of December, 1895, was S177,-
406, 1885, 62, being sos, ,O71, ,420 80 in excess
of the actual gold reserve on that day,
and S77, ,406, 3s6. 62 in excess of any sum
that it would be necessary to use for
replenishing that fund in case the sec
retary should at any time be able to
exchange currency for gold. There is,
therefore, no reason to doubt the abil-
ity of the government to discharge all
its current obligations during the pres
ent fiscal year and have a large cash
balance at its close without imposing
any additional taxation in any form
upon the people, but | adhere to tie
opinion, heretofore expressed, that the
secretary of the treasury ought always
to have authority to issue and sell or
use in the payment of expenses short
time bonds, bearing low rate of inter-
est, to supply casual deficiencies in the
revenue. Although former recommend
ations upon this subject cannot be
strengthened by repetition, the subject
is of such Importance that l consider it
my duty to present it again to the at
tention of congress and to express the
hope that it will receive favorable con-
sideration.
Strict Economy Recommended.
"While the situation does not re-
quire any legislation for raising addi-
tional revenue by taxation at this time,
1t is such as to require the strictest
economy in appropriations and public
expenditures. At time when the peo-
pie, upon whom the expense of sus-
| tanning the government is imposed, are
compelled to practice the closest econ-
omy in their business and domestic af-
fairs in order to meet their obligations
and re-establish their trade and indus
tries, it is more than ever the duty of
| public authorities to avoid waste and
extravaganza in the appropriation and
disbursement of the revenues. Nearly
every appropriation is in terms, or by
necessary implication, a direction to
| the executive authorities to expend the
money, and, therefore, the RESPONSE
| bility for an increase or reduction of
expenditure rests primarily and mainly
upon congress. 1t is certain that if
appropriations are not made the money
will not be expended, and, for the rea-
son just stated, it is almost equally
certain that if appropriations are made
the money must be expended.
Retire Legal Fender Notes.
."There has never been time since
the close of the war when the gradual
retirement and cancellation of the
United States notes would not have been
beneficial to the country, nor has there
ever been time when the issue of ad-
ditional notes of the same character
would not have been injurious to the
country. If our legal tender notes
We're retired, there is abundant reason
to believe that very large amount of
| gold, which has been excluded from the
country by the excessive use of silver
and paper in our circulation, would
promptly return to take its place in
our currency and constitute perma-
nent part of our medium of exchange.
Bonds Payable in Gold.
''As part of the plan for the retire
ment and cancellation of the legal ten
der notes. the treasury should be re-
lieved from responsibility for the re-
| demption of national bank notes eX-
cept worn, mutilated and defaced
notes, and the notes of failed banks,
and each association shoald be required
to redeem its own notes at its own Of
| fees and at agencies to be designated
| by the comptroller of the currency. or,
| If this is not considered eNpedient and
| the present system OF current redemp-
| tion by the treasury is continued, the
secretary should have the power, after
future date, TO be fixed in the law, to
require the banks to keep their per
cent redemption in gold coin and to de-
| post gold coin for the withdrawal of
bonds whenever circulation is to be
| permanently surrendered or reduced.
This can be most successfully and eco
nomical!y accomplished by authorizing
the secretary of the treasury to issue
| from time to time bonds payable in
| gold, bearing interest at a rate not ex-
c2caing per centunN per annum and
having IA long time TO run.
No Moro National Bank Notes.
cit is not probable that any plan for
the permanent retirement of the United
States notes and treasury notes will be
adopted that will not require consid-
cradle time for its complete execution,