Red Lodge picket. [volume] (Red Lodge, Mont.) 1889-1907, 1896-12-26
HE IS FOND OF BONDS
SECRETARY OF THE TREASURY
CARLISLE MAKES \ REPORT.
No More Taxes Are Needed. but More
Economy in Appropriations
and Expenditures.


| cnues of the government to have been
S4u9, 415,40S, and the expenditures $434 ,61S b54
| leaving a denclt for the year ended June
| so of s25, ,206, ,24o.
! In addition to ordinary revenues, the
| cash in the treasury was increased by
| the following sums: The sale of 100000,
| 0o0 per cent S0-year bonds. Sill 166.ee Is
| and from the issue OF per cent bonds in
| liquidation OF interest accrued on refund
| ing certificates converted during the year,
$4130, making a total of Sl1,17G316. AS
compared With 1895, the receipts for 1S9G
increased s19, 102, POS, of which the follow
ing are the principal items of increase:
Customs, 81, ,S63, 1874; internal revenue. SSH
! 392; the profits of coinage bullion depos-
tied, ETC., s1256, ,512; postal service, S5,515-
| 0SO.
| There is shown to have been a de-
! crease in the ordinary expenditures of
| 81, ,105, ,0S2.
The revenues of the government for The
| current fiscal year are thus estimated
| upon the basis of existing laws: From
| customs, s14S. 100000; from internal rev
| enue. s150,00O,00O; miscellaneous sources,
s30,0000 900; from postal service, so, 192, 100;
| total estimated revenues, $i07, 1888 120.
The expenditures for the same period
are estimated at SAT-, 293, 120, leaving an
| estimated deficiency for the year of s64,-
| ,000
| If our ordinary business activity should
be resumed and the consumption of ar
ticles subject to taxation should increase
to its normal proportions, there may be
in act tho Il laf,
| in our revenues.
In his discussion of the currency, the
secretary makes an exhaustive argument
in favor of the retirement from circula
ton of United States and treasury notes
The secretary says:
THE maintenance of q policy which
necessarily imposes upon the government
the burden of furnishing gold at the
public expense to whom may demand il
for use or boarding at home or for ex-
port to other countries can not be justi-
fled upon any grounds of eNpediency or
sound financial principle.
while the government has power to
borrow money, it is not it's duty to issue
public obliga tionS merely Tor the purpose
of providing the paper currency for use
in the transaction of business; nor has
it the constitutional power, in my opin-
ion, to make it's promises legal tender
in the payment of private debts.
ALTHOUGH the actual ability Of the gov
ernment 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 well known
that the constant agitation Of this CUES
tlo,3 during the past few years has upon
several occasions greatly imperiled the
safety of our entire currency system. SO
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 de-
vised will furnish the country with either
sold or silver unless it pays for it with
means already collected by taxation OF by
contracting an Indebtedness to be paid by
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
proper to ascribe, or as a prudent secre-
tary Of the treasury would adopt in the eA-
ercise of his official discretion, would not
result either permanently or temporarily
in an injurious contraction of the cur
rcncy."
Secretary Carlisle renews his recommen-
ia cion made in his last report that the
secretary of the treasury should be au-
thorized to issue from time to time bombs
payable in gold-bearing interest at a rate
not exceeding 3 per cent per annum, and
having a time 20 run, and to exchange
such bonds for United States notes and
treasury notes upon such terms as might
be most advantageous to the government,
OF to sell the bonds abroad for gold, when
ever in his judgment it might be advisable
10 do so, and use the gold thus obtained in
making redemptions of outstanding notes.
Secretary Carlisle also reneWs his rec
ommendation for such amendments to the
national banking laws as would permit the
issue of circulating notes equal in amount
to the face value of the bonds deposited
and reduce the tax on notes to one-fou-th
of / per centum per dnnum, and tuat au-
thority be given to establish branch banks
for the transaction of all kinds of business
now allowed, except the issue of circulate
ing notes.
Continuing, the secretary says: al
though the receipts from the ordinary
sources of revenue during the last three
fiscal years have been less than the expend-
itures, there have been at all times su.ti-
cient available funds in the treasury to
maintain an efficient public service and dis
1,I,1i of+ +nn
ernment, and no public creditor has been
delayed in the collection of his claim nor
has the business of the country ever been
disturbed by a doubt concerning the abil-
ity of the government to defray its Crdi~
nary expenses.
On the subject of protection, he says: $50
long as the income from customs and in
ternal taxes exceeded the expenditures,
the fact that protective duties were de-
structive of revenue, although clearly ap-
parent to all who observed the practical
operation of the system, did not attract
the attention of the public generally; hut
the situation has been materially changed
since 1892, and hereafter it will not be pos
sible to sacrifice revenue to protection
without seriously embarrassing the fiscal
without seriously embarrassing the
fiscal affairs of the government
| by depriving it of an income
sufficient TO defray its expenditures. If
the usual proportion of this income is
hereafter to be derived on taxes on i'm
ported goods, the protective theory must
| be abandoned as the basis of our legisla-
| ton upon the subject and well consld-
cred and consistent revenue system must
be substituted in its place, and, in my
opinion, this can be done without material
| injury to any trade or industry now exist
| ing in this country
| After furnishing a long array of figures
to bear out his statements, the secretary
continues: "If this view is correct, 1t IS
evident that new objects of taxation ciust
be included in our tariff schedules, or tfe
lattempt to secure the ultimate proportion
| of revenue from customs be abandoned
and some other methods of raising means
to support the government must be adopt
ed