Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-01-03
THE CASH BALANCE
How the United States Treasury
Begins the New Year.
ANOTHER BOND ISSUE WILL Be NEEDED
Unless a Change for the Better or
a Radical Currency Reform.
RECEIPTS AND EXPENDITURES

The United States treasury begins the
new year with a general cash balance OF
s153, ,337, ,579 of which sS6. AS is reported
to be in gold. The news of withdrawals
from the sub-treasury at New York to the
amount of 81 100000 yesterday, however,
will carry the actual treasury gold below
sSs,OOO,OOO unless there are large deposits
at the mints or receipts at the custom
house reported today. Less than six weeks
have elapsed since the last issue of five per
cent bonds. netting so9,0OO,OOO to the treas
ury and raising the gold reserve to $11l,-
142,O20. Another six weeks showing the
same rate of loss in the gold will carry it
below s590OO0OO. the point at which the
last offer of bonds was made. The treas
ury officials have been hoping for months
that the restoration of the general cash
balance to a respectable figure and the i'm
provement in general business would result
in heavy receipts of gold and obyiate the
necessity of further bond issues, but they
are ready to admit that the situation is not
improving, ana that another issue OF DondS
will be required during the spring unless
there is a sudden Change for the better or
q radical reform in the currency system OF
the country. There seems to be little DIS
position on the part of private holders OF
gold to deposit it in the custody OF the gov
ernment, even against gold certlflcates.
Very few such certificates were issued
while the reserve was above S1OO,OO0.OOO,
and the amount now outstanding is so3,36l,-
900 aga INST s163. .1IS.959 on January oo ie9a,
when the amount was near its highest
point.
Receipts and Expenditures.
The receipts of the treasury during De-
cember failed to realize the premise of the
first half of the month"; and show an ex-
cess of expenditures of 5,269,324 The to-
tai receipts during December were 81, $685.
1876, making the total for six months sloo,-
$50 457. The expenditures for December
were S27 13j. 400. making the total for SIX
months S1S6953. Id. This deficit OF VT
100000 for the first half of the fiscal year
Is a somewh hat better showing than for the
corresponding months of 1888, when re-
ceipts were sl51.n5.44i aad expenditures
SlS9,379,TI There was marked improve
ment in December also over the figures for
November. the aggregate receipts increas-
ing s2.45I,OOO. and the expenditures being
reduced 1900. The customs receipts IN
creased from So 260. .6J2 in November to
sl1 ,203 049 in December. while int rnal rev.
enue receipts advanced from s7,It4O.4 to
S9,394.039. These gains are regarded as an
Indication of a still further Increase dur-
ing the winter and spring, Indicating the
revival OF imports of sugar after the ex-
haustion of the supplies imported before
the new duty took effect, and the reSump-
ton of Withdrawals of whisky from bond
with the consumption of the stock with
drawn in anticipation of the increased tax.
1t Is stated at tne treasury tHdl uo
crease of the beer tax or of any other tax
is contemplated there as means OF re-
plenishing the revenue The hope Is still
entertained trat receipts will equal ex-
penditures by the middle of the spring,
and that the income tax payments during
June and July will create small surplus.
The treasury has several heavy liabilities
to meet, however, during the next SIX
months. and may not enjoy a large In
crease In receipts IL general business con-
tinues to be restrained by distrust of the
currency. About s2,5cOOOO In Pacific rail-
road six per cent bonds have to be re-
deemed on January 16. in compliance with
the government guarantee. Congress hav-
ing failed to provide by law for their re-
funding at the expense of the railways.
Interest payments will be due this month
also to the amount OF about S6,OOO,OOO, ana
this demand will be repeated in April. Re
viving business and sound currency
would probably justify the expectation OF
adequate receipts under existing law, but
the deficit seems likely TO continue II ex-
isting conditions remain unchl l5ed. Ihere
would be little occasion in such case Tor
new methods of taxation, for new issue
IF bonds would cover another SI0WO,W0
into the treasury and would add that much
to the cash available for current expendi-
lures.
Pension Payments.
The pension payments are showing no
such decline during the present fiscal year
compared with the year preceding as they
showed in 1894. The total for six months
ending December 81 has been S72,2i1, $50
for 1894, against s73, 24S l07 in 1893, but the
payment for 1893 included some advance
drafts fu7 January. The expenditures for
the corresponding six months of 1892 were
$50. H., 91l. indicating a decrease of S7OOO,-
90 in half a year for the closing months
of 1893.
The national bank note circulation has
decreased during the past calendar year
only sl,y2s.374 in the aggregate, and only
Sso,457 during December. The decrease is
live circulation based upon United States
bonds, having been s.. 43o, ,239 during the
year. ami SiOJS.1 during December The
decrease iE circulation was most marked
during the latter part of the summer and
the autumn, before the issue of the last
Installment OF per cent bonds. The bond
issues both in February and November
seemed to stimulate circulation, or at least
to arrest it's reduction. and s., 625, $50 of
the 5 per cen. bonds have already found
their way into the treasury a deposit
for the security Of bank note circulation.
Some of these have been substituted for
the Pacific railroad bonds and the per
cents, which have been withdrawn, but
others have been deposited to secure new
circulation, which might not otherwise
have been taken out. The amount of 4
per cent bonds now on deposit to secure
circulation is S152,346. $50. of IL per cent
bonds, S22 I.,S 100 and of per cent bonds.
Sl2,gTT,O9O. The lawful money deposited to
cover circulation in process of retirement
has increased from s23,3ii. .322 OF December
81 1888 to So, SIG, 1ST on December 81, 1894
New Post OMce Regulations.
Strict instruction to postmasters at all
delivery offices to prevent further over