Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-12-17

"
sum that it would be necessary to use fol
repienishing that fund in case the seore
| tary should at any time be able TO ex
cnange currency for gold. There is there
lore. no reason to doubt the ability of tn,
government to discharge its currency obli
CATION during the present fiscal year aut
have large cash balancs, at its close
without imposing additional taxation il
any form upon the people. but adhere L
the opinion, heretofore expressed, that tn,
secretary of the treasury ought ALWAYS Il
have authority 10 issue and sell, or use in
the payment of expenses, short time bonds
bearing a low rate of interest. 10 supply
casual deficiencies in the revenue.
While the situation does not require
any legislation for raising additional
revenue by taxation at this time, 1t Is such
as TO require the strictest economy in an
preparations and public expenditures.
Nearly every appropriation is In terms, or
by necessary implication. a direction "a
the executive authorities to expend the
money, and therefore,. the responsibility for
an increase or reduction of expenditures
rests primarily and mainly upon Congress.
With a complete return to the normal
business conditions of the country, and a
proper legislative and executive supervi-
sion over expenditures, the revenue laws
now in force will, in my opinion. yield
ample means for the support of the public
service upon the basis now established
and upon the assumption, which seems to
he justified. that the progress now being
made toward the restoration of our usual
state of prosperity will continue without
serious interruption. -
1t is estimated that there will still be a
surplus of nearly $1,000. 600 during the
fiscal year 1897
During the fiscal Years 1894 and 1895.
the ordinary expenditures of the govern
ment have been decreased $27 ,2S2. $50. 90
as compared with the fiscal year 1898, and
it is believed that, with the co. operation
Of Congress, further reductions can be
made in the future without impairing the
efficiency of the public service"
In regard to the bond issues. Secretary
Carlisle says; Between the first day of
February 1894 and the 18th day of March,
1895, three issues of bonds were made,
amounting in the aggregate to $l62, 315. :
400. The payments into the treasury on
account of the second bond sale were not
entirely completed until after the first day
of December, 1884, and it soon became
evident that the transaction had not been
effectual to stop the drain of gold. On the
Sth OF February, 1895. the reserve had been
reduced to $4l,340,lSi and several mil
lions more had been demanded, q part of
which was taken out and aftcrward re-
turned to the treasury on account of the
temporary restoration of confidence result
ing from the fact that it became generally
known that measures were about to he
taken for the replenishment of the reserve.
The large Withdrawals in December,
1894, and in January and the early pars of
February, 1895, were due almost entirely
to feeling of apprehension in the public
mind which increased in intensity from
day to day, until it nearly reached the
proportions of panic and 1t was evident
to all who were familiar with the situa-
ton that, unless effeotual steps Were
promptly taken TO check the growing dis
trust, the government would be compelled
within u few days to suspend gold pay
ments and drop to deprecated silver and
paper standard. More than siS. 600 600 of
the amount withdrawn during the brief
period last mentioned was not demanded
for export, but was taken out by people
who had become alarmed on account of
the critical condition of the treasury in its
relations to the currency of the country
Congress, although earnestly appealed to
for relief, having failed to make any other
provision ior meeting the emergency a
contract, the particulars OF which were
communicated to that body,
was entered INTO on the oth day OF
FEBRUARY, 1879 Tor the purchase OF 5000,
ooo ounces OF standard eold Cold at the
pFice OIL 30 ooifl per ounce 20 DC paid
lof by the delivery OF United states bonds,
having 80 years TO run, and bearing
per cent. lhtorest, ana the eoid TO be
al inc United states subtreas-
urles. ny the terms OF the contract, not
less than one-nalf OF the goiu was TO be
procured abroad ana the parties with
whom it was made stipulated that they
would, as lar as lay IN their power, exert
all financial influence ana Will make oil
legitimate efforts to protect the treasury
OF the unlted states against the with
drawals OF gold pending the complete per
lormance OF this contract.
rms Undertaking was faithfully and
carried out and no gold was
taken from the treasury TO De- used IN pay
ing Tor the bones mas mas been done IN