The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-17
Secretary carIisIe's Report.

yesterday is a satisfactory answer to the
republicans who insist that the remedy
for the governments financial difficulties
is more revenue and higher tariff. The
secretary says there would have been no
deficit If the income tax provision Of the
present tariff law had not been declared
unconstitutional For the fiscal year end
ing June 30. last. there was a deficit Of
nearly Sis,000.C00 The secretary, however,
estimates that the deficit this year Will
not amount to more than S17,Oo,OOo, and
that there will be a surplus Of at least
100000 for the year 1897.
on Dec /. the actual cash balance in the
treasury was SIT. fo5. $50. being $9S072. 40 in
excess Of the actual gold reserve, and ST.
4O5,SS6 in excess Of any sum that would
be needed for replenishing the gold re-
serve, if at any time, the secretary should
be able to exchange currency for gold.
With such a large amount Of cash on
hand above current liabilities. and with an
almost absolute certainty that the reven-
ues wiz fall short only about $l7,0OO,O00 of
meeting expenditures during the current
year, and viii exceed them in 1897 by at
least 100000 it is evident that the treas
ury is in no danger of being bankrupted,
and that there is no need for additional
revenue.
If it cannot be shown that there is need
of additional revenue the ground taken
by the republicans that the financial trou-
bles of the government are caused by he
fear that the government will not be able
to meet it's financial obligations ceases TO
be tenable. If they persist in elinging TO
the position they have taken they will
do so in the face of figures. furnished by
the Secretary of the Treasury, which show
beyond a shadow of a doubt that the gov
eminent is not in need of more revenue.
The government is not in need of more
money. 1t needs gold. not to meet cur
rent liabilities, but to strengthen the gold
reserve, and thus strengthen confidence
in the governments ability to maintain
gold payments. The secretary is correct
when he says that, however much the
revenue Of the government might be in
creased, the financial troubles of the gov
eminent would not be removed unless the
additional revenue were paid in gold, and
there was legislation that would enable
the government to retain the gold.
The remedy for maintaining the gold re-
serve which the secretary proposes is the
same as that suggested by the President
in his message, and is the only one that
has been suggested that promises to &C
complish the purpose desired. 1t is that
the greenbacks and treasury notes shall be
retired by means of long term per cent.
bonds. II the greenbacks and legal tender
notes were cancelled there would be no
way of drawing gold out of the treasury.
When the government raised the gold re-
serve to the S10OOOO,OOO mark. it could keep
it there without trouble. If the policy of
reissuing the greenbacks and treasury
notes is made permanent the policy of is
suing bonds for gold will have to be made
permanent. because the government will
have to have a gold reserve in order to
keep its silver and paper money on par
ity with its gold money.
But it is claimed that the retirement of
the greenbacks and treasury notes would
cause a very great contraction of the cur
rency. 1t certainly would, but Secretary
Carlisle makes a suggestion to prevent
contraction. 1t is that the national banks
shall have the right to issue notes to the
full par value of the bonds deposited to
secure them. and that the tax on bank
note circulation shall be reduced to one
quarter of one per cent. There is no rea-
son why notes to the amount of the face
value of the bonds deposited to secure
them should not be issued. The ninety per
cent. limit was fixed when government
bonds were below par. Now they are
greatly above par.
We doubt If the suggestions of Secre-
tary Carlisle viii be given the considera-
ton to which they are entitled. The re-
publicans are determined apparently to
regard nothing with favor that comes from
a democratic administration and the sill
verites and populists are opposed to any
legislation that would keep the money of
the country sound. There is too much par
tisan politics in congress for the countrys
good
Representative Bailey of Texas proposes
that congress shall prohibit senators and
representatives from soliciting or recon-
mending the appointment of any person
TO any Office, the appointment to which
is vested in the President or the head Of
any department. Mr. Bailey's idea will
hardly be adopted. Office seekers are I'M
doubtedly thorns in the flesh of members
of congress, but it is a mighty powerful
argument with campaign workers TO
promise endorsement for appointive Of
fees during a campaign. Congressman
would probably like to get rid of the office
| seekers after election times. but they are
not going to give up any of the patronage
! that they have.
In 1874 John Jay went TO England and