The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1895-12-27
1D1NGLEY REPORT
Reasons That Are Given by the
Ways and Means Com
mittee
Why Their Bonds and Tariff
Bills Should Be Passed
Without Delay.
Chronic Deficiency Alleged as
Chronic Deficiency Alleged as
the Most Potent Cause of
the Difficulty.

WASHINGTON, Dec. q. - Chairman |
Dingley Of the ways and means COM
mittee reported to the house the tariff |
and bond bills agreed on by the major
ity Of the committee. They were ac-
companied by the following reports:
The committee on ways and means, |
to whom was referred SO much of the
presidents annual message, and SO
much of the annual report of the Sec
retary of the treasury as relates to
revenue and the condition Of the
treasury and also the presi- |
dents special message presenting the
urgency of immediate action by con-
gress, in direction calculated to bring
relief, report:
seriousness of the situation and the i'm
portance of prompt remedies, SO far as
congress can give them.
Chronic Deficiency the Potent Cause.
Your committee regard the chronic
deficiency of revenue for the past two
years and half as a most potent cause
of the difficulties which the treasury
has encountered, and an important
factor in the creation and promotion OF
that serious distrust which has par
alyzed business and dangerously shaken
confidence, even in the financial opera
tions of the government. 1t is impossi-
BILE for government to have continu-
ous deficiency of revenue for two years
and half without affecting its finan-
cial standing, as it is for an individual.
1t is impossible also for government
to continue in this condition without
casting a shadow of doubt and discour-
within its borders.
e. what Causes the Endless Chain.
II the consequences of such chronic
deficiency were only the necessity OF
borrowing money to meet current ex-
penses in time of peace, even this would
afford abundant reason for increasing
the revenue But the consequences are
more wide reaching than that. Insuf-
ficiency of revenue has made it neces-
sary to use the redeemed United States
legal tender notes to pay current expen-
ditures, and thus to supply additional
means to draw gold from the greenback
redemption fund-in short to create the
"endless chain of which the secretary
of the treasury complains, and which
has made it necessary to
Sell Issue After Issue of Bonds
to replenish the reserve. This will be
clearly seen when it is remembered that
the secretary of the treasury has issued
and sold little over $l62, 600, 900 Of
per cent 10 years and 4 per cent 80 yeal
bond from which he has realized about
1882, 600, 900. and after redeeming $l82,
600, 900 of United States legal tender
notes with the proceeds, he has beer
obliged to Immediately pay out $l33,
600, 600 of these demand notes to NEE
current expenditures, and thus has fur
nished $l33, OOO, 900 Of government de
mand notes to be again and again uset
to draw gold from the treasury. 1t i
evident that 80 long as there is insult
fcient revenue, this performance vii
90 on, and bond sale after bond sal
will be required. 1t is also evident tina
if there had been sufaciency Of reve
nue., these redeemed legal tender note
would not have been paid out at once
and there would have been
So Much tho Less Opportunity
to draw gold from the treasury. In
deed there is good reason to believ
that if in the first three months of tn
distrust which inaugurated the run o
the redemption fund, the treasury ha
been receiving revenue more tina
adequate to meet expenditures, 80 as
temporarily hold the redeemed govern
ment notes, the disposition to preser
these notes for redemption would HAY
soon been overcome. And the nece
sity for more revenue from the point
view Of the maintenance Of the n
demption fund is not taken away /
the fact that we have CSC. 900, 600
cash in the treasury, in addition to Il
500, 600, 900 (part gold) required for Il
redemption fund and the twenty ol
millions required as q working balanc
This 60, ,OOO, 900 represents so, ,OOO,O o
of redeemed United States leg
tender notes for whose redemptit
we borrowed CSC, 900, 600 in gold. Ifv
continue to pay them out to meet
deficiency Of revenue, then present
they will come back again
To Draw Fifty Million More
from the treasury, which we must 81
ply by selling go, 900, ,OoO more of bono
The suggestion, therefore, that we ne
no more revenue because we have
cash balance of $50, coo, 900 of COVER
ment notes in the treasury that can
used to pay any deficiency for the ne
six or twelve months is, in effect,
proposition to issue more bonds to ms
= deficiency which should be met
once by providing more revenue.
In other words, those who oppe
raising more revenue in such stir