The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-06-28
A RUSH FOR CARLISLES CASH.
HEAVY DRAFTS TO DE MADE ON
THE TREASURY NENT MONTH,

IL Is Incident 10 the Opening of the
New Fiscal Year-Every Branch of
the Government sure TO he Clam
OrinR for Funds Under the Appro-
PriRtion BiIIs-The Operations OF
the Bond Syndicate.
Washington. June 2.-"There will be
heavy draft upon the treasury next
month" said prominent member OF The
administration to-day. IN discussing tho
finances Of the government. in connection
with the final payment on the latest issue
OF bonds by the Morgan-Belmont syndI-
cate.
You See" said he, "the new fiscal year
begins and the Secretary Of the Treas
ury will be called on to supply every
branch Of the government with funds, In
accordance with the provisions Of the
annual appropriation bills. The pension
claims, the bounty on sugar and the in
terest on the various government securI-
ties, must also be considered, hence IL
will be seen that during the month OF
July there will be a heavy run upon the
funds now so carefully guarded IN the
treasury"
What effect will these heavy expendi-
lures have upon the gold reserve, II any?'
asked the correspondent OF the Morning
News
None whatever" replied the official.
unless the demand should come from
abroad. In that case the Morgan Belmont
syndicate are under contract with the
government to protect the gold reserve
from foreign encroachment. until next oc-
tober."
There appears to be a general misunder-
standing as to the status Of the Morgan
Belmont bond syndicate since its final pay
ment was made yesterday, Judging from
the various teegraphic inquiries that have
been received a the treasury department.
Although the Morgan Belmont syndicate
have paid $65. ,275 for 2,3l5, 400, In per
cent. bonds, the syndicate is still under
obligation to stand between the govern
ment and those who would attack the gold
reserve until October next"
mo one but the members OF the syndi-
cate" continued the official. will probably
know what IL has cost to protect the gold
reserve since the syndicate entered into
its contract with the government. Thus
far It's work has been successfully done,
and there has been no attempt TO raid the
gold vaults Of the treasury since the con-
tract was made Many persons in congress
and on the outside were vigorous In their
denunciation of the contract when Il was
originally made because the bonds were
disposed Of at such a low figure. The syndi-
cate may nave made a large profit
out of the transaction, or
1t may not The fact is that the treasury
ba s,I tba boa nd do
moralizing drain upon its gold reserve and
in the meantime there has been
a gradual increase In the general
business of the country, which has result
ed in a slow, but steady Improvement In
the condition of the treasury. Some OF
us who thought the contract with the
Morgan Belmont syndicate almost a crime
must now admit that the syndicate has
thus far kept its obligation to the letter,
and by so doing has produced quieting
effect upon the financial situation through
out the country. What the effect will be
after the contract with the syndicate ex-
pires in October next Is a matter for con-
lecture. The very men who are now un-
der contract TO protect the gold reserve
may be the very first 70 attack It as soon
as their obligation ceases. How they
have managed to keep the foreign fingers
off Of our gold Is a business secret which
they have not divulged TO the treasury
department. There has undoubtedly been
frequent demands for gold from abroad
during the past few months, but The treas
ury has not heard Of it officially, for the
syndicate, in accordance with the terms
of its contract. has managed to ascertain
where the demand came from and supply
II without the treasury department know
ing anything about it."
How are the finances OF the govern
ment now as compared with a similar
period in the Rst fiscal year?'
They are in much better shape now.
At the beginning Of the present fiscal
year, which terminates, practically, next
Saturday night there was deficit of
over S70000,00O At the beginning of the
next fiscal year, which commences next
Monday, the deficit Will not be over
S45. OOO."
What was Secretary Carlisle's estl-
mated defcit?"
He said It would be about $50. 900. 900.
When he prepared his estimates he was
counting upon receiving from $4,000, 600
to s35, 900 from the income tax. That
he is now deprived Of. Besides there has
been a falling of in the receipts from
sugar, because of the reduction in the
price Of that article. The differences in
sthe receipts between an advalorem duty
and a specific duty has deprived the gov
ernment Of from s., 100000 10 $1,000 coo duty
during the present year.
when you deduct what was expected
from the income tax and the loss from
sugar. in connection with the actual de-
fclt, II will be seen that the secretary was
not as far out Of the way in
his estimates as is generally supposed.
say the returns from the income
tax would be, II collected, about SIS, 900, ,0O0
and the duty on sugar 5000, 600, that would
have Deduced the present deficit down to
S25,OO0OOO.
"All things being considered the daily
receipts at the treasury show a gradual
increase all along the line. AS I said be-
fore, there will be a heavy demand for
funds upon the treasury next month, be-
cause II is the beginning of the new fis-
cal year The sugar bounty may not be
paid during July, because II may take
more than a month to adjust the claims
Of the various sugar industries"