The daily morning journal and courier., 1895-12-17

secretary would be using notes redeem ed in gold for the payment of the ordi- nary expenses of the governments In one case by paying out the notes them selves, and in the other by drawing sil- yer from reserve fund on account Of their cancellation and then paying out the silver"
 Discussing the prospect of revenue and expenditures coming together in the future, the secretary says:
 "f adhere to the opinion heretofore expressed that the secretary Of the treasury ought always to have author ity to issue and sell, or use in the pay ment of expenses short time bonds bearing low rate of interest to supply casual deficiencies in the revenue,
 While the situation does not require any legislation for raising additional revenue by taxation at this time, it is such as to require the strictest economy in appropriations and public eXpendi- tures Nearly every appropriation is in terms, or by necessary implication, direction to the executive authorities to expend the money, and therefore the re- sponsibility for an increase or reduction of expenditures rests primarily and mainly upon congress.
 with complete return to the nor nal business conditions of the country, and a proper legislative and executive supervision over expenditures, the rev enue laws now in force will, in my opin- ion, yield ample means for the support of the public service upon the basis now established; and upon the assumption, which seems to be justified, that the progress now being made toward the restoration of our usual state of pros perity will continue without serious in- | terruption, it is estimated that there will be surplus of nearly $7,00O00O dur ing the fiscal year 1897.
 | During the fiscal years 1894 and 1895 the ordinary expenditures of the gov ernment had been decreased $27 ,2S2 656.- 20 as compared with the fiscal year | 1893, and it is believed that with the cooperation of congress further reduc- tions can be made in the future with out impairing the efficiency of the pulp lie service"
 In regard to the bond issues, Seere- 1 tary Carlisle rehearses what has occur red on this wise in the last year and speaks of the faithful performance of | their bond contract by the syndicate Proceeding, the secretary says:
 EVIDENCES OF INCREASED PROS- PERITY.
 | "These encouraging indications of in- creasing prosperity still continue, and | it is reasonably certain that, if our progress is not checked by repetition 1 of large demands upon our resources, l or by failure to meet the just ex- pectations of the people in respect to the reformation of our fiscal system, we are entering upon an era of material growth and development not surpassed in our 1 history.
 But" adds Secretary Carlisle, tour further progress toward complete restoration of confidence and prosperity is seriously impeded by the defects in l our currency laws" and he proceeds to l discuss the remedy as follows: 1 Our past experience with the United States notes and the treasury notes has clearly shown that the policy of at- l tempting to retain these obligations of the government permanently as a part of our circulating medium, and to re- deem them in coin on presentation and reissue them after redemption must be abandoned, or that such means must l be at once provided as will have ten, dency to facilitate the efforts of the secretary to accumulate and maintain ! io fi1ia in, q +f keep the public constantly assured ot l the stability of our entire volume ol l currency, and of our ability at al times to preserve equality in the ex changable value of its various parts
 
 THE OUTLOOK UNDER THE PRES
 ENT SYSTEM,
 "The issue of bonds to procure coir for the reserve, which is the only eff fectual method now available under the | law, will, unless the conditions whicl l have already been developed by tn, present policy are radically changed ultimately result in the creation of { public debt much larger than would be required to retire and cancel al tilS .IlOleSi anu lilC dlidl udl llflGIGS charge will be much greater than i would be necessary to incur on a nev class of bends adapted to the presen circumstances of the government ant the well-known preferences of invest OTIS.
 "If, however, an attempt is to b' made to keep the United States note and treasury notes permanently in cir culation by reissues after redemption and the government is to be perma nently charged with the duty of sus
 taining the value of all our currency paper and coin alike, the conclusio. cannot be avoided that the policy of is
 suing bonds for the accomplishment o
 these purposes must also become per manent, and such additional power
 must be conferred upon the secretar
 as will enable him to execute the law
 relating to these subjects with th
 least possible disturbance of the bus
 ness affairs of the people and the leas
 possible charge upon the treasury.
 UNITED STATES NOTES AM
 TREASURY NOTES SHOULD B.
 RETIRED.
 q am thoroughly convinced that thi
 policy ought not to be continued, bu
 that the United States notes and treas
 ury notes should be retired from cil