The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1895-12-28
CARLISLE'S REPORT.
Annual Statement of the Govern
ment Finances
Submitted to Congress by Secretary Car
lis!e-An Exhaustive Argument in
Favor of the Retirement
of '~ireenbacks.

WASHINGTON, Dee. 1.-THE annua.
report of Hon. John {. Carlisle. Sccre
tary OF the treasury. was sent to con
gress yesterday. ItwaS.of course.a long
and important document. but that por
ton of it which referred to national
finances was Us follows:
At the beEinnin: Of the last. fiscal year. July
/. 1854 The cash balance in the treasury. eX-
! cluCing AL current liabilities. but including 4
gold Reserve OF sii.313.G2i06. WIS 81; 81. lSj. Is
and at n" close -: the wear, June 81. lsyN. tht
cash baiG"ce. cXc.Iding al current liabilities
but including "a gold reSer"e at so 1000 was
~" .2io,l'a'1. showing increase Of 81 57.1l7.7i
| Ike excess ri expenditures over receipts during
| IL" year WAS as I..223 +. a. against d
deficiency x -. -tci.-tC.jS during the fiscal yea;
l-!i The tuta! receipts during the fiscal year
1875 were si5ttSt61St greater IEan the receipts
during the hsca! year ls9'. ana the expendi-
lures were III .;.J.sSI - less than during the
year iS!l. HE revenue derived IrCEI customs
during the fiscal year 1895 exceeded the revenue
derived il"m TIE same source in 1874 by the
sum OF S-t-ai"t-E.-3. GHt III" receipts under the
Arnt"rmaI revenue Avs. and from some other
sources. were .rn~ Than during IN" previous
year. :" that IL" net increase OF gCvcIUc was
s!A.'tS Hr5.>t. - :.rDTc stated.
If ii" income TAX Vr.vi-.u2 contained n the
act of A--s>t -. ~. had been sl,ta ned D.,
the courts, = - believed that the Gcfici-Ucy FOR
the yea w0Ui, nc: have exceeded the amount
estimated IN ny last annual report. IL that
rrrort the opinion wu> expressed that the laws
II - III force would not Ou!y Yield an ample
revenue during the fiscal year lsgS. bu; that
there w0Gls he a ~"rplT, of Gcarly S3g.gH. 1Gl.
his o0iI:nr WAS based upon the SurpnS;tion.
watch then seemed II bc well founded. that all
IL" sources ~ revenue rcov'Uc& in the act Of
AUguH: =. Isgi. would b. available. and THAI.
wing to III" higher rate Of tax
! alton I'M. ed r9gn distilled spirits and Some
otacr articles. III" receipts under ~" internal!
/ rev pu" laws W,s:lI bc very considerable in
,T1S-"d; bat n" decision or the supreme court.
h--r.n- the income lax pr0vi>.5l al The aC: To
toe unconstitutional. and the fact that the re-
rcl t. from ln;rrGal revenue did not increase
| - anticipated. but actually tell I'll f3.iSg. no -
| iu.i::, -" .~cai year 1895. - compared with
he previous year. notE. th~taU3!L- the higher
"ate imposed on spirits AMI r-icr arjic,r~.
! h"'" -~-II.y altered tEs Situation. ana l an
lew O.: ~" "D.n.3r ihai there VIII be 4 de
lcl"1cy f.: &hpGt IL. "r.@oo during the current
tnral year.
Discussing the endless chair" thcpry;
Of the deficiency. th@ secretary says:
TIE total excess O.; expenditures over re-
r'Eit'~ from .l..i- J. :-G'. 10 December l.. 1875.
WIS si"".:tlt.2. |nu Of This sum - f2.HL3~
wa> i.'' out Of T." uai,Icc on hand ~ THIS
ca ..- u."I --r-u:rr DE the use rf THii-d
~,1i'~ noes ;a', treasury I rc- 9rr~v.jc, for
rcd.E-t'i.". 1-. L. '"rc.E.i NIL III" treas
a. - cNt!-a-' ."r g ic'.n. III" act ~
1aT -. H.. provided ;lIt when any
lg.'"t santos n,;" ma, b. redeemed or re-
ce.I'F' into I'll" treasury aEgC" V&" 10y. from
f"F rcd. 'iaf'H. 80. s'lA'a N.aH.4 ifFs'st- 100 VIC
Unit. ~at">. hnt they Snail not 10" re-
t.F".. "I:"'..r. ur destroyed. bar they shall
he rc:~>"c AID laid gu, again and kept in
Ii j. clear that when any Of these notes
h." been redeemed they do not constitute Il
",rt or the reserve fund. bHt become Il part Il
/" De- use! IN the >ane manner a.
o:her munrr hcionE!n" To the GOV
crHmeHt. Whenever they could. by cx-
changes. bc used to procure god for the
TtClgEi>lmpUf # The reserve Th,N have boon
50 applied. but. when this could no; be done.
tney have been treated u> available funds in
tn" TREASURY ana reiS~ued in payment of public
expenses. None OF my predecessors in Office
have ever made any distinction between the
notes received in payment OF the ordinary
revenue and notes presented by the holders
ana redeemed in coin. but such notes have been
used unfortunately as the eXigencieS Of the
public service required
Secretary Carlisle quotes in support
OF this proposition the report of Secre-
tary Sherman for lS17. which led to the
law of congress. enacted May 81. 1879.
making it mandatory upon the secre-
tary of the treasury to reissue the
notes.
''Sinc" the passage OF that act" he SAYS. the
right and duty Of he secretary OF the treasury
t. reissue ihe old i"Ial-teuGer notes. no matter
how y ceIved into tae treasury. p~royiGed they
belong to the United States. hi- never been
80 49, @r-' N-'"- 80 ~
the treasury notes iS>u", under the
Si!ver-pu releasing act. they must br
~reiS.ued when redeemed in gold,
or, il Cancelled. standard silver dollars mus be
issued in their place: for If this We're not done.
there would be 4 smaller amount u; such notes
outstanding than the cost Of the silver bullion
and the standard silver dollars coined there
from and held in the treasury. and this condi-
zion = expressly prohibited by the statute un-
der which the notes were issued. Whether
these notes are reiSSued or destroyed and
standard silver dollars substituted for them.
the pract cal result i the same. for
in both cases the secretary would be
1lSinT notes redeemed in gold for
ne payment Of the ordinary expenses OF the
governments: in one case. by paying out the
otes themselves, and in the other, by drawing
liver from the reserve fund on account OF
heir cancellation, and then paying out the
liver
Discussing the prospect of evenue
nd expenditures coming together in
IN the future, the secretary says:
The cash balance in the treasury OF the first
pay Of 1925, was slT7. Oj.3-6. being
ys,0T2, 40 in excess of the actual gold reserve
bn that day. and sT.4o6,Ss6 in excess OF
ANY sum that it would be necessary to
|uSe for rePienishing that fund in case
the secretary should at any time he
able IL eXc5&=ss currency for gold. There is.
therefore. no rCaS-u to doubt The ability Of the
obligations during the present hScal year. ana
larsc cash balance at its close. without
imposing hi'alllDidl TAXATION N any FORM upon
Ithe people: but | adhere to the opinion. here
|tOfcrC expressed. that the SeCrctary Of the
Treasury ought always have authority - issue
land sell. or use in the payment uf expenses.
Short-tt@ ~ bonds. bearing a low rate nf inter-
est. TO supply casual Deficiencies in the rev.
.enue.
The secretary advises the strictest
economy IN appropriations and public
expenditures. The revenue laws q
in force viii. he believes. yield ample
means for the support of the public
service upon the basis established,
and an estimated surplus of nearly
81. O0O.O 900 during the fiscal year 1897.
''Uuring the fiscal years 1894 and 1895 the Or
binary expenditures Of the government have
been decreased 81. 2s2. 65s. ~. as compared with
the fiscal year 1898, ard it is believed that. with
the cooperation of congress. further reduce
tionS can he made in the future without i'm
pairing the e@cieacy OF the public service"
In regard To the bond issues. Secre-
tary Carlisle r~ecites that:
There were three issues Of bonds between
February /. iSGl. and March Il. 1895. The pay
ond bond sale were not entirely completed IN |
til after the first lay Of December. 1894. and Il
soon became evident that the transaction had
not been ~efectuaI to stop the drain OF gold.
The large Withdrawals in December, 1894. and
in JanuarT and the early part o. Feb-uay. 1926. !
nc says. wcr- due almost entirely TO 4 feeling
OF apprehension in the public mind.
which increased in intensity from day to
day until 1t nearly reached the proper
lions OF q panic, and Il was eyidrr. that. I'M |
less steps were promptly taken :, checIS the
growing distrust. the government would be