The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-17
CARLISLE ON THE CURRENCY.
EXTRACTS FROM THE sECRETARY,s
ANNUAL REPORT.

The Vet lAGEcdHG OA hGNenueS LOT the
Last Fiscal Year $I5,66S, O55-The
Income Tax Opinion and the Deh-
cit-A Deficiency of About Sly
100000 Counted on for the Current
Fiscal Yenr-Retirement of the
Greenbacks.
Washington, Dec. 1.-THE annual report
Of Hons John G. Carlisle Secretary of
the Treasury, presented to congress to-
day. is a document Of some $1,000 words
The greater part of this space. however,
is devoted to a recapitulation of reports
of the numerous bureaus of the depart
ment over which Mr.. Carlisle presides,
and to statistical matter already made
public.
Passing over these and coming to the
secretary's discussion of the treasury and
currency, the report says: ''At the be-
ginning of the last fiscal year, July !,
1894, the cash balance in the treasury, ex-
Guiding all current liabilities. but includ-
ing a gold reserve of S64, S73,024, was $117,-
"a 436, and at the close of the year, June
80. 1895, the cash balance. excluding all
current liabilities, but including a gold
reserve of 100000, was $195, 240, 153, show
ing an increase of S77,657 III. The excess
of expenditures over receipts during the
year was S42, sos 22S, as against a deficiency
of 500, sos, 26O during the fiscal year 1894.
The total receipts during the fiscal year
1885 were $15,66S.05 5 greater than the re-
caipts during the fiscal year 1894, and
the expenditures were S11,S29.9S1 less than
during the year 1894 The revenue derived
from customs during the fiscal year 1895
exceeded the revenue derived from the
same source in 1894 by the sum of $20,S4O,
0s6. but the receipts under the internal
revenue laws and from other sources
were less than during the previous year,
so that the net increase of revenue was
S5.66S, O55, as above stated.
If the income provision contained in
the act of Aug. Is, 1894 had been sus
tanned by the courts, it is believed that
deficiency for the year would not
have exceeded 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 during the fiscal year 1886, but
that there would be a surplus of nearly
$29.O00O0O.
This opinion was based upon the sup
position, which then seemed to be well
founded, that all the sources of revenue
provided in the act of Aug. q, 1894, would
be available, and that, owing TO the hlgner
rate of taxation imposed upon distilled
spirits and some other articles hereunder
the internal revenue laws would be very
considerably increased; but the decision
Of the supreme court, holding the income
tax provisions of the act to be uncon-
stitutional and the fact that the receipts
from internal revenue did not increase
as anticipated but actually fell off So
6S9, $50 during the fiscal year 1895, as COM
pared with the. previous year, notwlth-
standing this higher rate imposed on
spirits and other articles, have greatly
altered the situation and l am now OF
the opinion that there will be dehclency
of about Sl7,000O00 during the current rs
"The total excess of expenditures over
receipts from July l, 1893, to Dec |, 1893,
was paid out of the balance on hand at
s this date in excess of $100O00,0OO and the
81 remainder has been supplied by the use
n Of United States notes and treasury notes
81 presented for redemption and thus re-
81 ceived into the treasury IN exchange FOR
d gold coin. The act of May 81, 1878, provided
q that when any United States note May be
q redeemed or be received into the treas
81 ury under any law, from any source
\ whatever, and shall belong to the United
B States, they shall not be retired. can
q celed or destroyed, but they shall be re-
issued and paid out again and kept in
4 circulation, and the act of July IA, 1890.
provided that the treasury notes, when
4 redeemed, may be reissued, but that No
q greater or less amount of such notes
shall be outstanding a any time than the
cost of the silver bullion and the stand
ard silver dollars coined therefrom then
49, - wv - SeNoNAS ANA-e'NeN ~ $500
4 1T is clear that when any of these notes
have been redeemed they do not constr
tute part of the reserve fund, but be-
4 come part of the general cash assets
4 oil the treasury, to be used in the same
mannertas other money belonging to the
Il government Whenever they could, by
81 exchanges, be used to procure gold for
4 the replenishment of the reserve, they
q have been so applied but, when this could
not be done, they have been treated
available funds in the treasury and rels-
q sued in payment of public expenses. None
OF my predecessors IN office have ever
81 made any distinction between the notes
received in payment of the ordinary rev.
enue and notes presented by the holders
q and redeemed in coin but such notes
have been used Unfortunately as the
exigencies of the public service required.
secretary Sherman called attention to
a this question in his annual report for 1871
The result was that congress passed the
act of May 81, 1878, making it mandatory
upon the Secretary of the Treasury to re
a issue the notes. Since the passage of that
act, the right and duty of the secretary to
& reissue the old legal tender notes no mat
Ter how received into the treasury, pro-
Nlded they belong to the United States
81 mas never been question in any quarter,
anu as 10 the treasury notes issued nm
ger the silver purchasing act, they must
pc re-issued when redeemed in gold or,
81 4 cancelled, standard silver dollars must
pe issued in their place; for if this were
q OF such notes outstanding than the cost
ot the silver bullion and the standard sill
Nto4LdIS tOlutu litItlIOili- anu iltiu III
the treasury, and this condition is ex-
n pressly prohibited by the statute under
when Nthe notes were issued Whether
these notes are re-issued or destroyed and
standard silver dollars substituted for
Il Jhem, the practical result is the same, for
81 m both cases the secretary would be US
ing notes redeemed in gold for the pay
ment of the ordinary expenses of the gov
eminent; IN one case, by paying out the
notes themselves, and in the other by
"taWlng silver from a reserve fund on ac-
81 count of their cancellation, and then pay
ing out the silver.
THE cash balance in the treasury on the
rfst day OF December, 1896 was $177, 406,-
.hh; being SOS, 072, 420 in excess of the actual
-old reserve on that day, and SIT 406, 1856
If excess of any sum that it would be nee
tssarY to use for replenishing that fund
IN case the secretary should at any time
ne able to exchange currency for gold
mere Is, therefore, no reason to doubt
lGs ABILITY of the government to discharge
~ It's current obligations during the
81 tgseHt fiscal year, and have a large cash
taIance al its close, without imposing ad-
uluonal taxation in any form upoa the
81 itePIe but / adhere to the opinion, here