The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1896-12-26
HE is FOND OF BONDS
SECRETARY OF THE TREASURY
CARLISLE MAKES A REPORT.
No More Taxes Are Needed, but More
Economy in Appropriations
and Expenditures.

Isle, IN his annual report SHOWS the rev.
enues of the government to have been
s4O9 AIS. 4OS and the expenditures S434, SIS 654.
leaving a dencit for the year ended June
80 of s25, ,24O.
In addition to ordinary revenues the
cash in the treasury was increased by
the following sums The sale of S1OO, OOO,-
900 per cent 3O-year bonds, Sill, 166. 2i6:
and from the issue of per cent bonds in
liquidation OF interest accrued on refund
ing certificates converted during the year,
s413O, making a total of Sill, 17O,376. AS
compared with 1895, the receipts for 1896
increased $40, POS, of which the follow
ing are the principal items of increase:
Customs, $7,S63,1S4; internal revenue, $751;
1892; the profits of coinage bullion depos-
tied, ETC., $1,256512; postal service, $5516,-
OSO.
There is shown to have been a de-
crease in the ordinary expenditures of
$4105, 0S2
The revenues of the government for the
current fiscal year are thus estimated
upon the basis of existing laws: From
customs, $14S, 900, 900; from internal rev.
enue, $15O,0O0,O0O miscellaneous sources,
$50, 100000 from postal service 49, 1872, 100;
total estimated revenues S4O7, 1913, 12O.
The expenditures for the same period
are estimated at $472, 293, 12O, leaving an
estimated deficiency for the year of S64.
100000.
If our ordinary business activity should
be resumed and the consumption of ar
tices subject to taxation should increase
to its normal proportions, there may be
in fact, the secretary says, no deficiency
in our revenues.
In his discussion of the currency, the
secretary makes an exhaustive argument
in favor of the retirement from circula-
s,tion of United States and treasury notes
The secretary says:
1.-The maintenance of a policy which
necessarily imposes upon the government
the burden of furnishing gold at the
public expense to whom may demand it
for use or boarding at home or for ex-
port to other countries can not be justi-
fed upon any grounds of expediency or
sound financial principle.
while the government has power to
borrow money, it is not it's duty to issue
public obligations merely Tor the purpose
of providing the paper currency for use
in the transaction of business; nor has
it the constitutional power, in my opin7
ion, to make it's promises legal tender
although the actual ability of the gov
eminent to redeem it's notes promptly in
gold coin may be undisputed, still the
question whether they will be or ought
to be so redeemed must always be open
to public discussion, and it is we'll known
that the constant agitation of this ques-
ton during the past few years has upon
several occasions greatly imperiled the
safety of our entire currency system. Sc
long as the United States notes remain
in circulation, questions as to the mode
and manner of redemption and public
confidence in the stability of our cur
rency must be more or less disturbed
mo system of coinage that can be lie
vised will furnish the country with either
gold or silver unless it pays for 1t with
means already collected by taxation OF oy
contracting an Indebtedness to be palo DS
the people in the future.
Il am thoroughly convinced the retire
ment and cancellation of United states
notes of both classes, under such reason
able limitations and restrictions as TO the
time and methods as congress may see
proper to ascribe, or as a prudent secre
tary of the treasury would adopt in the eN
ercise of his official discretion, would no
result either permanently or Temporarily
in an injurious contraction OF the cur
rency"
Secretary Carlisle renews his recommen
dation made in his last report that th'
secretary of the treasury should De hu
thorized to issue from time to time oon1
payable in gold-bearing interest at rdu
not exceeding 8 per cent per annum, ant
havino, a time to run, and to exchang
such bonds for United States notes an
treasury notes upon such terms as mlSil
be most advantageous to the government
or to sell the bonds abroad for gold' Wheii
ever in his Judgment it might be advisapi
TO do so, and use the gold thus optalheu
making redemptions of outstanding hoto'
Secretary Carlisle also renews his rec
Communication for such amendments 10 I'll
national banking laws as would permit III
issue of circulating notes equal IN amour
to the face value of the bonds deposl-e
and reduce the tax on notes 10 ohe-Iou.'
of l per centum per annum, and tnat AZ
thoritv be given to establish branch bank
for the transaction of all kinds of bushes
now allowed. except the issue of circuld
ing notes. d..
Containing the secretary says; "A
though the receipts from the ordinar
sources of revenue during the last tnr'
fiscal vea-shave been less than the expen'
ftures there have been at all times sun
cient available funds in the treasury
maintain an efficient public service and III
charge the current obligations of the go
ernmant and no public creditor has bee
DELAYED in the collection of his claim m
has the business of the country ever bee
disturbed by a doubt concerning the aDl
RI dpfraV