The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-12-27
MUST INCREASE REVENUES.
Report of the Ways and rleans Conn
mittee on Finances.

WASHINGTON, d. c., Dec. 26.-The bills
introduced by Dingley were accompanied
by the following reports:
''The Committee on Ways and Means to
whom was referred so much of the Presi-
dents annual message and SO much of the
annual report of the Secretary of the Treas
ury as relates to revenue and the condition
of the treasury, and also the Presidents
special message presenting the urgency OF
immediate action of Congress in a direc-
ton calculated to bring relief, report that
the committee appreciates the seriousness
of the situation and the Importance OF
prompt remedies so far as Congress can
give them.
"Your committee regards the chronic
deficiency of revenue for the past two
years and half as most potent cause OF
the difficulties which the treasury has en-
countered, and an important factor in the
creation and promotion of that serious dis
trust which has paralyzed business and
dangerously shaken confidence even in the
financial operations of the Government.
1t is as impossible for a Government to
have continuous deficiency of revenue
for two years and half without affecting
it's financial standing as it is for an indi-
vidual. 1t is impossible also for Govern
ment to continue in this condition without
casting shadow of doubt and discourage
ment over all business operations within
its borders.
1.-THE serious fact which we are called
upon to confront is that in the two and a
half years that have elapsed since July 1,
1893, this Government has had an INSULT
cheney of revenue to meet current expend-
itures amounting in the aggregate to $133,-
100000. And even in the first half of the
present fiscal year the deficiency will reach
about $4,000, 900 and about SO, 600, 900 in
this present month. And up to the pres
ent time there is no sufficient ground for
opining that this insutficierfcy of revenue
will not continue during the remainder of
the fiscal year. and how much longer no
one can safely predict.
"If the consequences of such a chronic
deficiency were only the necessity of bor-
rowing money to meet current expenses in
time of peace, even this would afford
abundant reason for increasing the reve-
nue.. But the consequences are more wide
reaching than that. Insutficiency of reye-
nue. has made it necessary to use the
redeemed United States legal tender notes
to pay current expenditures, and thus to
supply additional means to draw gold from
the greenback REDEEM ption fund-in short,
to create the endless chain of which the
Secretary of the Treasury complains. and
which has mace IL necessary to sell issue
after issue of bonds to replenish the re-
serve.
"This will be clearly seen when it is re-
m embered that the Secretary of the Treas
ury has issued and sold little over $751;
600, 900 ofP per cent ten-year and per ceIt
thirty-year bonds, from which he has real
lied about $1S2, 100000 and after redeem
ing about $182,00O,000 of United States
legal tender notes with the proceeds he
has been obliged to Immediately pay out
$133, 100000 OF these demand notes to meet
current expenditures, and thus has fur
nished $133, 100000 of governmental de-
mand notes to be again and again used to
draw gold from the treasury.
1T is evident that so long as there is in
sufficient revenue this performance will go
on, and bond sale after bond sale will be
required. 1t is also evident that if there
--N~N $500 - Soii'SiChSs VI iSNOh0 NC ChSoC e
deemed legal tender notes would not have
been paid out at once, and there would
have been SO much the less opportunity to
draw gold from the treasury.
Indeed, there is good reason to believe
that II IN the first six months of the dis
trust which inaugurated the run on the
redemption fund the treasury had been
receiving revenue more than adequate to
meet expenditures, so as to temporarily
hold the redeemed Government notes, the
disposition to present these notes for re-
demption would soon have been overcome.
''That would have undoubtedly been the
case II the redemption fund had been in
creased in the spring of 1893 ana never
be allowed to fall below the 500, 0O0 600
minimum mark, and the necessity for
more revenue from the point of view of
maintenance OF the redemption fund is not
taken away by the fact that we have $780,
Co., 600 OF cash in the treasury in addition
to the $1OO, 0o0,0 900 (part gold) required for
the redemption fund and the twenty-odd
millions required as a working balance.
This S5O,OG0,000 represents $50,O0O0O0 OF
redeemed United States legal tender notes