The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1895-12-17
CARLISLE'S REPORT.
Au Urgent Plea for the Retirement
- Of the Greenbacks.
CAUSE OF THE MONEY sTRIHGENoY

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CAUSE OF THE MONEY sTRIHGENoY
xbs Secretary ef the Treasury Declares
THAT the striising Out OF the Income Tax
u nesponsibie Our Present system Of
Finance False One.
WASHINGTON, Dec. H.-Secretary Car:
Il fisls's annual report on the st,ite OF the
finances was sent to congress yesterday. 1T
shows that the revenues oftlle government
from all sources during the last fiscal year
amounted to $39o, ,378, 800. The expend-s
tturea during the samo period aggregated
&a8a, Ina, f26, leaving deficit for the year
OF tia, 500, ,e23 As compared with the fiscal
year 1924, the receipts for 1895 increased
III $40, ,705, although there was a decrease
Of sii ,8ae, ,9sl in thelordinary expenditure.
which Is largely accounted for by a reduc.i
tion Of Gil ,t34 ,055 on sugar bounties. The
revenues for thecurrent fscai year uro esti-
mated, upon the basis OF existing laws, at
sf3i 1907 407, and tho expenditures NJ Si4s.-
907 ,4D7, which Will leave q deficit Of sl7,-
100000.
For the coming fiscal year ending June
8tf looft hnc ottEtthky CsbiiHtttcA tuD ib-
ceipts at si6i, 793, ls0, and the expenditures
at si57, 1884, ,l92, or an estimated surplus Of
e8,45l9s6.
The secretary devotes a large share of
his report to discussion Of the condition,
of tho treasury and the currency, in the
course of which he makes an exhaustive
argument In favor of the retirement Of the
greenbacks. Heexpresses the opinion that
the secretary OF the treasury ought always
to have authority TO issue and sell or nse
IN the payment of expenses short tina
bonds bearing low interest to supply
casual deficiencies In the revenue Re-
fcrring ia, the cause OF the existing strin-
gency he says:
rncon,e Tax Would Have Made Surplus.
III the income tax provision contained
in the act of Aug. 2s 1894, had been sus-
tanned by the courts it is believed that the
deficiency for the year would not have ex-
ceeded the amount estimated in my last
annual report. In that report the opinion
was expressed that the laws then in force
would not only yield an ample revenue
dufing the fiscal year 1895 but that there
would be surplus Of nearly $2D, 900, 600.
This opinion wns based upon the supposi-
tion, which then seemed to be we'll founded,
that all the sources OF revenue provided in
the act of Aug. gS, 1891, would be available,
and that, owing to the higher rate OF tax
Ntion imposed upon distilled spirits and
some other articles, the receipts under the
Internal revenue laws would be very con-
sidcrably increased, but the decision Of the
suprefie court, holding the income tax
prsStsions of the act to be uneonstitu-
.zfonal ard the fact thnt the receipts from
r internal revenue did not increase as autic-
ipated, but actually fell off $3,6s9 SCOTS
during the fiscal year 1895, as compared
with the previous year, Notwithstanding
Che higher rate imposed on spirits aud
other articles, have greatly altered the
situation, and / am now of the opinion
that there will be u deficiency OF about
SiT,0000oO during the current fiscal year"
Assuming that there will be complete
rsturn to normal business conditions, the
revenues, the secretary says, will Under
existing laws, be sufficient and probably
will surplus Of nearly $1,000 900 in
She fiscal year of 1897 The secretary be-
Aisves expenditures may be further reduced
without impairing the efficiency Of the
public service
The secretary describes in detail the
circumstances leading up to the gold syndi-
cate contract, declaring IL was necessary
TO prevents q panic A large part OF the
gold had been furnished from abroad by
the syndicate. The beneficial effects Of
ehis transaction, the secretary says, We're
felt immediately, not only in this country,
but in every other having commercial re-
tations with us. Confidence In our seeur-
lilies, he continues, twas at once restored
and these encouraging indications OF in-
oFeasing prosperity still continue, and it
is reasonably certain that, II our progress
Ia not checked by II repetition OF large de-
mands upon our resources, or by failure
to meet the Just expectations of the people
In respect to the reformation of our fiscal
system, we are entering upon an era of
material growth and development not sur
passed In our history,
Issue of Bonds to Procure Coin.
1.-THE issue of bonds to procure coin for
the reserve, which Is the only eifeetual
method now available under the law, will,
unless conditions which have already been
developed by the present policy are rad
ically changed, ultimately result In the
creation of a public debt much larger than
would be required to retire and cancel all
the notes, and the annual interest charged
will be much greater than il would be
necessary to incur on new class of bonds
adapted to the present circumstances of
the government, and the II known
preferences of investors IT. however, an
=
States notes and treasury notes perma-
nsntis In circulation by reissues after re.
demption, and the government is to be
permanently charged with tho duty of
sustaining the value of all our currency,
paper and coin alike, the conclusion can
not be avoided that the policy of issuing
bonds for the accomplishment OF these
purposes must also become permanent.
II am thoroughly convinced that this
policy ought not TO be continued, but that
thc United States notes and treasury notes
should DO retired from circulation at the
earliest practicable day, and that the gov
ernment should be wholly relieved from
tho responsibility of providing credit
currency for the people. 1t would be diff
cult IL not impossible, to devise a more In
convenient, expensive or dangerous sys-
tenn than the one now in operation under
the laws providing for the issue, redcmp
tion and reissue of legal tender notes by
she government.
IF our legal tender notes were retired
there Is abundant reason to believe that q
very large amount of gold which has been
excluded from the country by the excessive
nse Of silver and paper in our circulation,
would promptly return to take its place in
our currency and constitute u permanent
part OF our medium OF ofexehangc. A country
having such extensive trade relations with
other nations as we now enjoy cannot be
deprived Of its proper share of the world 8
stock OF money, and II 1t adopts and I'D.
here's 70 . sound and stable currency sys-
te1n at home, 1t will get the best money
tbs world has, because no other kind is
sver used In International transactions.
Adherenoe TO a False system.
Long adherence to false system has
20 o great extent undermined our national
creale, 50 FUR a. 1t Is related-to the main
tenance Of a sound currency, and it must
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