The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-12-22

Washington. Dec. 2L-secretary
Carlisle in has annual report on the
state of finances, shows the revenues
of the government from all sources to
have been s4O9. 475, 40S, and the expendi-
lures s4S4. SIS, 654, which leaves a deficit
for the year ended June go. 1896. Of s25'-
COG 245. In addition TO the ordinary
revenues. collected during the year, the
cash IN the treasury was increased py
the following sums;
From the sale of $1OO.00O000 four per
cent. thirty-year bonds, Sill, l66,246 ana
from the issue Of 4 per cent Donos III
liquidation of9interest accrued on re-
funding certificates converted durlnS
fine wear. s.. 1870. making a total of Slll,-
170,376 49,.
.Sq5 the receipts for 1895 increased
s19. lO2 POS. Of which the following are
The principal items OF increase;
Customs, S7.S63.134 internal revenue
s3,341. 1872; profits on coinage Duillon ue-
posted, etc, q, 256s512; postal service
,0S0.
There is shown to have been de-
crease in the ordinary expenditures OF
S40l5, $50.
The revenues of the government for
the current fiscal year are thus estl-
mated upon the basis of existing laws:
From customs, Sl4S.000000; from in
ternal revenue, S150,0O0, 900; miscellane-
Gus sources. 10000, 600: from postal
service, $79.793,1 100; total estimated
revenues s40T, 793, 120; the expenditures
for the same period are estimated at
$4s2, 295 120. leaving an estimated De
ficiency for the year OF $64, 900.
These estimates or receipts and eX-
I; -, l1e
up on the assumption that there VIII
be no substantial change in existing
business conditions and that the pres
ent scale of public expenditures viii
not be reduced.
But, if our ordinary business activity
should be resumed and the consump-
ton of articles subject TO taxation
should increase to its normal proper
items, there may be in fact, the secre-
tery says, no deficiency in Our revenues.
SAME OLD STORY.
In his discussion of the currency, the
secretary makes an exhaustive argu-
rnent in favor of the retirement from
circulation of United States and treas
ury notes il the course of which he
SAYS:
''Gur experience since the resump-
ton OF specie payments has so thor
oughly demonstrated the impolicy of
of these notes as a permanent part of
our currency, hat further argument
upon the question seems 10 be I'M
necessary. except for the purpose of
again pressing the subject upon the
attention of congress and urging the
prompt adoption of such measures as
will. within a reasonable time, elm
mate this element of weakness from
our system"
THE maintenance of a policy which
necessarily imposes upon the govern
ment the burden of furnishing gold at
the public expense to whom may de-
mand it for use or boarding at home
or for export to other countries cannot
be justified upon any grounds of eX-
pediency or sound financial principle"
While the government has power to
borrow money, it is not its duty to is
sue public obligations merely for the
purpose of providing a paper currency
for use in the transaction of business,
nor has il the constitutional power, in
my opinion, to make its promises legal
tender in the payment of private debts.
Such a policy, even if sanctioned by
the constitution. instead of impartinE
strength ana stability to our currency
system. seriously cndangers it by the
Introduction of political and partisan
considerations into the arrangement of
q subject which ought TO be regulated
the people and by the laws Of trade
and the principles which control hon
est commercial intercourse.
Although the actual ability of the
government 70 redeem its notes
promptly in gold coin may be undis-
puted, still the question whether they
will be or ought to be so redeemed
must always be open to public discus
sion. and II is we'll known that the
constant agitation Of this question dur
ing the last few years has upon
several occasions greatly imperiled the
safety of our entire currency system.
So long as United States notes re-
main in circulation, questions as to the
mode and manner of their redemption.
as 10 the means of procuring and
maintaining a coin reserve for that
purpose viii be made political issues
and so long as these questions remain
in politics, public confidence in the
stability of our currency must be more
or less disturbed.
MUST NOT BE DELUDED.
We must not be deluded into feel
ing of security by the fact that there
has been a suspension of gold with
drawais during the last few months
and a large accession to our stock of
gold from abroad during the same,
because there is no sufficient reason to
believe this condition of affairs will be
permanent, if our existing system is
maintained.
mo system OF coinage that can be
devised will furnish with either gold
or silver unless it pays for it with
means already collected by taxation.
or by contracting an indebtedness TO
be paid by the people in the future.
Il am thoroughly convinced the re-
tirement and cancellation of United
States notes of both classes under such
reasonable limitations and restrictions
as to the time and methods as con-
gress NAV see pr Ter to prescribe. or
as a prudent secretary of the treasury
would adopt in the exercise of his
official discretion. V1ruld not result
either permanently or temporarily in
an Injurious contraction of the cur
renew"
Secretary Carlisle renews his recon-
rnendation made in his last renort
that the secretary of the treasury
should be authorized to issue from
time To time bonds payable in gold.
bearing interest at he rate of not ex-
ceeding per cent per annum and
having a time to run and to exchange
such bonds for United States notes
and treasury notes upon such terms as
might be most advantageous, TO the
government, or to sell the bonds abroad
for gold whenever. in his judgment. it
might be advisable to do so, and use
gold thus obtained in making redemp-
lions OF outstanding notes. He gives
in detail his reasons for carrying this
plan into effect
whatever plan my be finally adopted
for the retirement Of United States notes