The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1895-12-17
MIR. CARLISLE REPORT
The Major Portion Of the Report Devoted 10
Numerous Bureau Reports of Statistics.
EXCESS OF EXPENDITURES s42, ,8O5,223
The Total Receipts Exceed Last Icnr
by O,00O-Grcat LOSS of Reeve
nue. Atfributcd 10 IL Reflective Cur
rcncy System = Suggests Retire.
n.cnt Of Treasury Notes.

Washington, Dec. 1G.-The annual re-
port OF Hon. John G. Carlisle, Secretary
of the Treasury, is IL document of some
$4,000 words. The greater part of this
space, however, is devoted TO n recapi-
tulatlon OF reports of numerous bu-
reaus of the department over which
Mr. carlisle presidcs, and TO statistical
matter already made public Passing
over these, and coming to the serious
ulScusSiun of the condition of the trea-
sury and the currency, the report says
,At the beginning of the last fiscal year
July ], 1894. the cash balance in the
Treasury, excluding all current liabili-
ties, but including II gold reserve Of
SGi,Sf3,O2i, was Sill ,5Si ,436, and at the
close of the year, June 80, 1895, the
cash balance, excluding all current IL
abilities, but including gold reserve
OF SlOo,OOo.UO0, was SlYo, 254, LAB, showing
an increase of 1881 III. The excess
OF expenditures over receipts during
the year was Sl2.S05,22S, as against II
deficiency ti of S6s;s03,2sO during the fiscal
during the fiscal year 1895
were Sl566S,055 greater than the
receipts during the fiscal year 1894,
and the expenditures were $l1 300 9Sl
less th;in during the year 1894. The rev
enue derived from customs during the
year 1888 exceeded the revenue derived
from the same source III 1894, by the
sum of $2G, ,0S6, but the receipts un-
der the internal revenue laws and
from other sources were less than dur
ing the previous year, so that the net
increase was 5,G6S,055 rs above stated
If the income tax provision contained
il the act CT August 2S, 1894, had been
sustained by the courts 1t is believed
that the deficiency for the year would
not have exceeded the amount esti-
mated in my last report In that re-
ODtniOn & N a
laws then In force would not only Yield
an ample revenue during the fiscal
year 1886, but that there would be n
surplus or nearly S29,00o0O0. This opin-
lon was based upon the supposition
which then seemed to he well founded
that all the sources of revenue provitl-
cd in the act of August 2S, 1894 would
lie available, and owing to the higher
rate of taxation imposed upon distilled
spirits and some other articles rho
receipts under the internal revenue laws
would be very co! siderably Increased; :;
but the decision OF the Supreme Court
holding the income tax provision Of
the act to he unconS Stitutional and the
fact that the receipts from internal
revenue did not increase. but actually
fell off S3,CS9,5G0 during the fiscal year
1S?5as compared with the previous year
Notwithstanding the higher rat tc i'm mposcd
on spirits and other articles have great
~ altered the situation and am now
deficiency of about S1T,000,00 during the
current fiscal year.
The cash balance in the Treasury on
the first day of December, 1885 was
SIT ,406,3S6, being $9S.072,42O in excess
of the actual gold reserve on that day
anu $1 .@S6 in excess of any sum that
II would he necessary to use for re-
rlcniShing that fund in case the Secre-
tary should at any time he able TO ex-
chanse currency for gold. There is
therefore. no reason to doubt the ability
of the Government to discharg1. all its
current obligations during the present
fiscal year and have n large cash ba-
lance at its close, without imposing
additional taxation in any form upon
the people: but adhere to the opinion
heretofore expressed. that the Secretary
OF the Treasury ought always have au-
thority to issue and sell or use i'm the
payment of expenses. short-tim bonds
bearing a low rate of interest to supply
casual deficiencies in the revenue. With
Il conpletS return to the normal busi-
ness conditions OF the country and Il
proper legislative and executive super
vision over expenditures the revenue
laws now in force will, in my opinion
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
Derity will continue without serious in
tcrruption. it is estimated that there
will be a surplus of nearly $1,000, 900
during the fiscal year 1897.
Between the 1st day of February.
1891, and the 18th day OF March, 1895
three issues of bonds were made
amounting in the aggregate Sl62 81 i, 400
The payments into the Treasury on ac-
count of the second bond sale were
not entirely completed until after the
lst of December. 1894, and IL soon be-
cnme evident that the transaction had
not been cffectual to stop the drain of
gold. On the Sth day of February, 1896
the reserve had been reduced to SAL $40 :
Isl, and several million more had been
demanded. and part of which was taken
out ylnd afterWard returned no the
Treasury on account of the Temporary
restoration OF confidence resulting from
the fact that IL became generally known
that measures We're about to be taken
for the replenishment of the reserve,
The large Withdrawals In December,
1898, and in January and the early part
of February, 1925, were due almost en-
tircly to feeling OF apprehension in
the public mind, which Increased in in
tensity from day to day until 1t nearly
reathed the proportions of n panic
and II is evident tn all who were fani-
liar with the situation that unless efrcc-
tual steps were promptly taken to check
the growing distrust, the Government
would he compelled within Il few days
to suspend gold payments ana drop to
deprecated silver and paper stand
ard. More than si3000,0oo Of the