The state republican. (Jefferson City, Mo.) 1871-1896, 1895-12-26
cARLlsLE's REPORT.

ICARLlSLE'S REPORT.
Ths annual report Of Hon. John
Carlisle, secretary Of the treasury,
~ been sent to congress-. That
Iprtion which referred to national
Iuapees was as follows:
] At the beginning Of the last fiscal
Fear, July /, 1894, the cash balance
1.-the treasury, excluding all current
liabilities, but including q gold re.
sefys Of se4, 1878, ,o24.o6, was $l17,-
w ABS. ID, and at the close Of the
year, June 80, 1895, the cash bal
es1ce, excluding all current liabilities
bit including q gold reserve OF
etoO, ,o0o, 900, was s195, ,240, ,25S.S7,
she ing an increase of s77,657,-
~ s11tfs q expenditures over
.s tAas.s1 gsssnssyy sy2 u
ta5i iesjs, ,soc.6s, during the fiscal year
1891 The total receipts during the
fiscal year 1896 were s15, ,e6s, ,o55.se
greater than the receipts during the
year 1894, and the expenditures we're
s1f,82s, ,731.54 less than during the
year 1894. The revenue derived
from customs dur ng the fiscal year
1895 exceeded the revenue derived
from the same source in 1894 by
$40, ,S4o, ,Os6.s3, but the receipts under
the internal revenue laws and from
some other sour es were less than
during the previous year, so that the
net increase Of revenue was s15, $685.
O55.86, as above stated.
"If the income tax provision con-
tanned in the act Of August %, 1894,
had been sustained by the courts,
it 10 believed that the deficiency for
the year would not have exceeded
the amount estimated in my last
annual report.
"I am now OF the opinion that
there will be a deficiency of about
s17,0oO,OOO during the current fiscal
year.n
Discussing the "endless chain'
theory OF the deficiency, the secre-
tary says:
"The act OF May 81, 1878, provided
that when any United States note
may be redeemed or received into the
treasury under any law from any
source whatever, and shall belong to
the United States they shall not be
retired, Cancelled or destroyed, but
they shall be issued and paid out
gain and kept in circulation
"It is clear that when any OF these
notes have been redeemed they do
not const tute part of the reserve
fund, but become part of the gen
eral cslh assets Of che treasury, to
be used in the Same manner as other
money belonging to the government.
Whenever they could, by exchanges,
be used to procure gold for the
repienishment Of the reserve they
have been so applied, but when this
could not be done they have been
treated as available funds in the
treasury and reissued in payment of
public expenses.
"Whether these notes are reissued
or destroyed and the standard 81 yer
dollars substituted for them the prac-
tical result is the same, for in both
cases the secretary would be using
notes redeemed in gold for the pay =.
ment OF the ordinary expenses of the
government"
Discussing the prospect of revenue
and expenditures coming together in
The future, the secretary says:
ssThe cash balance in the treasury on
the first day of December, 1895, was
s177, ,4O6, 1856, being $9s,O72, ,42O in
excess of the actual gold reserve on
that day and $77, ,4o6, ,3s6 in excess OF
any sum that it would be necessary
to use for replenishing that fund in
case the secretary should at any
time be able to exchange currency 10
gold. There is, therefore, no reason
to doubt the ability of the govern
ment to discharge all currency obi
cations during the present fiscal y eal
and have large cash balance at the
close without imposing additional
taxation in any form upon the peo-
pie.
~ adhere, however, to the opin'
ION heretofore expressed that the
Decretary- OF tho treasury ought al
ways have authority to issue and sci
OF use In the payment of expenses
short time bonds bearing low rate
Of interest, to supply casual def
cienciee In the revenue.
In regard to the bond issues, Sec
retary arise recites there wer'
three Issues Of bonds between Feb
ruary 1, 1894, and March IS, 1895
The payment into the treasury OF
account Of the second bond sale
were not entirely completed unit
after the Ist day Of December, 1894
and Il soon becc me evident that thu
trsnsaclion had not been effectual Il
stop tlas drain Of gold.
ConeFsss having failed to maxi
any other provision for meeting thu