Evening star., 1896-09-28
TREASURY FINANCES
Opinion of officials Upon the Changes
in Condition.
LAIa ur THE ADMINISTRATION
The Question of Revenue is Not
Yet Solved.
BANK NOTE CIRCULATION

The recent changes in the condition of
the treasury are regarded by friends of
the administration as tending 20 support
their position, that the reduction of the
gold reserve during the past three years
has been due to the state of the currency
rather than the republican contention that
1t has been due to the lack of revenue.
The deficit in the treasury has been grow
iIg more rapidly during the past ten or
twelve weeks than during the same period
last year, but the gold reserve in the mean
time has been steadily climbing upward.
The gold reserve has increased by natural
causes from $l01, GAS, 1O3 on July 2 to s119,-
1S6,665 today, while receipts have run be-
mind expenditures to the amount of $24,-
1913. The history of the same period
IN 1875 showed the decline of the gold re-
serve from $1O7 O7.512.3G2 to sos, ,213, 1852. while
the deficit created during the same period
was only $13U01, 100. gain of $1S,OO0.O00
m IN gold IN the one case and a loss of s12,-
NO'oU IN the other, making difference of
*5oOOO,OOo in favor of the present year, has
gone hand in hand with an increase Of
sIl,ooo,Uo over the deficit created in the
same period of 1885. The difference is re-
garded by the friends of the administra-
tlon as due to the contraction of the cur
rency Which has followed the bond sales
ana the accumulation of legal tender notes
In the treasury. The gold reserve actually
In sight is about $125, 500, 600, which makes
the difference since July 1 about S35, 600, coo
IN comparison with the record of last year
mere were 70 large gains Of gold reported
yesterday, and there were Withdrawals at
New York amounting to s53,sOO In coin
ana $25,4 400 In bars. These left the net re-
serve at $11962I ,11s. showing no radical
alnererce in the official figures since FRI
day. There was. however, deposit of
$lto,NO In gold in the New York suptreas-
ury IN exchange for paper currency. There
is. In addition, about 100000 of gold in
the mint at San Francisco the subtreasury
or assay office at New York and on the
ocean for delivery to the treasury The
amounts included under the. latter head
90 not cover all gold imports but only
nose Where application has been made to
the treasury for permission to deposit the
goid Immediately on it's arrival Some gold
is being obtained in exchange for currency
which Is being sent west ard south to
move the crops. The government has NOT
yet, however, an assured gold income, and
VIII not have 1t until after the election. 1t
is possible that by that time the banks of
new YORK will be ready to resume gold
settlements at the clearing house which
VIII be equivalent, in the case Of banks
carrying the accounts of importers, to the
payment OF gold for customs dues
Revenue Question Not Solved,
The conviction is STRENGTHENING at tho
Treasury Department that the problem of
maintaining the gold reserve Is solved
Tor the next administration for at least a
year The revenue question is not yet
solved, and the showing thus far since
July is very bad one. The past week
mas been one Of lighter receipts than al
most any week In the history of the treas
ury IN recent years. The receipts for the
entlre week have been only s. 1856 3S5 and
.he IN, re receipts for September have been only
nptr
month remain one Of them being Tuesday,
always a day Of light receipts, and the total
for the month will probably not reach s25-
no.oo. The total for the fiscal year thus
ing figures for 1895 were $sl, 500, ,23s.
a loss this year of about 1870
oeO. There has been a slight in
crease In internal receipts. which have
1. but this increase is due to the exhaustion
of the supplies Of whisky withdrawn from
bond In 1894. rather than to increased con-
sumption Customs receipts were $42, 231,-
SS1 up to September 26 last year; they have
fallen to $4,52OO7O this year. Miscellane-
Gus receipts have increased about 81 800
oOo and stand at $5,33O,521. but this in
crease is due to the seigniorage on silver
demption purposes. About $S0O,00O per
month is now being covered into the treas
ury receipts from this source. While re-
ceipts have thus fallen off, expenditures
have increased from s94, ,56ss4s last year
to $1O0, 0,S25, IA this year. The sum of So
100000 of the increase represents the pay
ments on the sugar bounty, but other pay
ments have been reduced, and the increase
in civil and miscellaneous expenditures Is
larger than the sugar item alone. The
deficit for September is 81 .243. $50, and it is
doubtful whether it Is more than wiped
out by the end of the month. The month
Of September, 1895, showed receipts of
27,54967S and a surplus of S3,175,O4O. The
hope of attaining these results has prac-
tically been abandoned at the treasury.
Explanation of the Gold Increase.
The small customs receipts perhaps ex-
plain in a measure the increase of the
gold reserve in the face Of growing de-
ficit They indicate the reduction Of i'm
ports, which has afforded such a large
balance of trade during the past few
months. There is some reason for believ-
ing, however, that gold imports can be
continued, even with increased imports of
merchandise, If the country declares for
the gold standard in the November cleo
ttons. One of the reasons for the gold i'm
ports in the theory of the friends of the
administration is the demand for currency
and the fact that imitation by government
paper came to halt with the repeal Of
the Sherman law. President Cleveland sug-
gested in his annual message last Decem-
ber that the void in the circulation caused
by the retirement Of the greenbacks could
be filled by the Importation of gold. Some
of his friends regard recent events as a
vindcation of this theory. He practically
retired a large amount Of legal tender
notes by the operations of the last bond
sale. The receipts for the bonds were
nominally in gold, but the large redemp
tions of legal tender notes to obtain the
gold resulted practically in the retirement
Of the notes. The proceeds Of the bond
sale were In any event covered into the
treasury in currency, which was thus
withdrawn from circulation, where it was
not obtained from abroad Legal tender
holdings have been reduced of late, but
they have been paid out for the gold de-
posted by the importing houses in the
New York subtreasury.
The legal tender holdings Of the treasury
are still s67,OS9,S37 in United States notes
and $35, ,643, 800 in Sherman treasury notes.
The amount Of the latter in the hands of
the public has been reduced to about ss9.-