St. Paul daily globe., 1895-12-17
THE GREENBACKS MUST GO.
MEANS TO CANCEL THEM SHOULD
BE PROVIDED BY GOLD
BONDS.
NATIONAL BANK NOTE ISSUES.
They Should BE Authorized and
Secured by BOnds-NO Curren-
cy Contraction Feared.

congress today. 1t shows that the
sources during the last fiscal year
amounted to $500, ,373, ,203. The eX-
penditures during the same period
aggregated $433, IT'S, ,426, leaving a de-
felt for the year of $42 ,S05, 223. AS
compared with the fiscal year 1894,
the receipts for 1895 increased ST.
$40, 7o5, although there was a decrease
of $11, ,329, ,9S1 in the ordinary eXpend-
itures, which is largely accounted for
by reduction of $11, $40, ,055 on sugar
bOunties. The revenues for the cur
rent fiscal year are estimated, upon
the basis of existing laws, at $431,-
9O7,4 ,407, and the expenditures at $44S,-
907, ,407, which will leave a deficit of
$17,000,000 For the coming fiscal year
ending June 80, 1897, the secretary
estimates the receipts at $464, 1913, ,120,
and the expenditures at $457 1884, 1913,
or an estimated surplus of $6,90S, ,926.
The secretary states briefly the facts
concerning the issues of bonds during
the year, the particulars of which
have already been reported to con-
gress.
Many of the vessels in the revenue
cutter service, the secretary says,
are very old and nearly unseaworthy,
and he recommends that four new
ones be provided to take the places
of the McLane. the Crawford, the
Seward, and one for the port of New
York. The secretary says that the
government of Great Britain has re-
fused to renew the sealing regula-
tions agreed upon for the season of
1894, providing for the sealing up of
arms, which leave the question of
possession and use of arms to be de-
termined wholly by the Paris award.
A careful count of all the seals on the
islands last year makes the number
little over 200, 900, decrease of over
one-half since 1891
GREENBACKS MUST GO.
The secretary devotes large share
of his report to a discussion of the
condition of the treasury and the
currency, in the course of which he
makes an exhaustive argument in
favor of the retirement of the green
backs.
The cash balance in the treasury
on the 1st day of December, 1895"
he says, was SIT, ,406, 1856, being $685.
O72,420 in excess of the actual gold
on that day, and $77,4O6, 3S6 in excess
of any sum that it would be neces-
sary to use for replenishing that
fund in case the secretary should at
any time be able to exchange cur
rency for gold. There is, therefore,
no reason to doubt the ability of the
government to discharge all it's cur
rent obligations during the present
fiscal year and have a large cash
balance at its close, without impos-
ing additional taxation in any form
upon the people. But 1 adhere to
the opinion, heretofore expressed,
that the secretary of the treasury
ought always to have authority to is
sue and sell, or use in the payment
of expenses, short-time bonds. bear
ing a low rate of interest, to supply
casual deficiencies in the revenue.
With complete return to the nor
nal business conditions of the coun-
try, and proper legislative and ex-
ecut1Ve supervision over expendi-
lures, the revenue laws now in force
Will, in my opinion, yield ample
means for the support of the public
service upon the basis now estab-
lished; and upon the assumption.
which seems to be justified, that the
progress now being made towards
the restoration of our usual state
OF prosperity will continue without
serious interruption, it is estimated
that there will be surplus of nearly
S7,OOO,O0O during the fiscal year 1895.
During the fiscal years 1894 and 1895
| the ordinary expenditures of the gov
ernment have been decreased s27.-
| 2S2, 2,656.20, as compared with the fiscal
year 1898, and it is believed that,
with the cooperation of congress,
further reductions can be made in the
future without impairing the eff
cheney of the public service"
AvERTED A PANIC.
Continuing, he says: ''The large
Withdrawals of gold in December
1894, and in January and the early
part of February, 1895, were due
almost entirely to a feeling of appre-
| hension in the public mind, which
increased in intensity from day tc
day until it nearly reached the pro,
portions of a panic, and it was evi-
dent to all who were familiar with
the situation that unless effectuaI
steps were promptly taken to check
the growing distrust, the govern
ment would be compelled within a
! few days to suspend gold payments
and drop to deprecated silver anG
paper standard. More than $4,000.
900 of the amount withdrawn dur.
ing the brief period last mentioned
was not demanded for export, but
was taken out by people who haG
become alarmed on account of tho
critical condition of the treasury il
its relations to the currency of the
country. The purchase of 3,50O, ,0Ot
!
the contract that not less than one.
half Of the gold was to be pro.
cured abroad, but after large par
of the gold had been furnished from
abroad the secretary, in order tc
prevent disturbances in the rates OF
foreign exchange at a critical period
and avoid condition which would
force gold exports and consequent
Withdrawals from the treasury, ac
quiesced in a departure from the
literal terms of the contract, thai
one-half of the coin should be pro.
cured abroad, and accepted deposits
of gold then held in this country tt
complete the delivery. Ordinary
prudence demanded that the success
of the plan to protect the treasury
against Withdrawals should not be
endangered by insisting upon g
strict compliance with all the details
of the contract, especially as the gov,
ernment could sustain no loss and