The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-12-21
RETIRE j. S.
NOTES.
This rs the Burden of Secreta-
ry Carlisle's Report.
Issue Gold Bonds and Cancel
the Greenbacks.
PLEADS FOR ECONOMY.
Enormous Outlay Of the Gov
eminent Not Justified.
Estimated Deficit For Current
Fiscal Year S64,5OO,OOO.

Washington, Dec. 21.-Secretary Car
Isle, in his annual report on the state
of the finances. shows the revenues of
the government from all sources to
have been S4O9. AIS, 4OS, and the expendi-
lures S484 SIS 654. which leaves a deficit
for the year ended June 80, 1896, of $25.-
203,245. In addition to the ordinary rev
enues collected during the year the
cash in the treasury was increased by
the following sums: From the sale Of
800 600, 600 four per cent 30 year bonds
$1ll 1885, 46 and from the issue of four
per cent bonds in liquidation of inter
est accrued in refunding certificates
converted during the year, 81 40, max
ing a total OF S111.170376.
As compared with the fiscal year.
1885 the receipts for 1896 increased S19,-
102,205. of which the following are the
principal items Of increase: Customs,
SlsS63, 1874; internal revenue 1881 1872;
profits on coinage, bullion deposited, etc,
Sl,256,512; postal service, 5,516.0SO
There is shown to have been a decrease
IN the ordinary expenditure of 81 O15.-
6oz. The revenues of the government
for the current fiscal year are thus es-
Umated upon the basis of existing laws:
From customs, S14S. 900, OOO
From internal revenue, $3.50 600, 600.
Miscellaneous sources. $40. OOO. 600
From postal service. $50, 793. 12O.
Total estimated revenues, S407. 1893, 100
The expenditures for the same period
are estimated at $472, 293, 120, leaving an
estimated deficiency for the year Of
S64, 500, OOO
In his discussion of the currency
question the secretary makes an ex-
haustive argument in favor of the re-
trement from circulation of United
states and treasury notes, in the course
OF which he says. 1T appears that the
entire volume of United States treas
ury notes has been once redeemed in
gold,and more than $98, SCI, 900 have been
twice redeemed.
our experience since the resump-
ton of specie payments has so thor
Oughly demonstrated the impolicy of
attempting to maintain the circulation
of these notes as permanent part
OF our currency, that further argument
upon the question seems to be unneces-
sary, except for the purpose of again
pressing the subject upon the atten-
ton of congress and urging the prompt
adoption Of such measures as will
within a reasonable time eliminate this
element of weakness from our system
The use of these notes as a circulat-
ing medium compels the government
to provide large gold reserve for their
current redemption, and as they are re-
issued when redeemed, such reserve
must be replenished from time to time
in order to afford the public a reason
able assurance that no default VIII be
made in the discharge of our public OBJ
legations The difficulty of procuring
gold for this purpose is greatly in
creased at the very times when it's
possession is most necessary, and. con
sequenty the government, being at
such times entirely deprived of gold
receipts from the ordinary sources of
revenue. is compelled to issue and sell
bonds upon terms less favorable than
might be procured under other Circum-
stances. The annual interest upon the
addition to the public debt which has
been made to procure and maintain
the reserve amounts to S16312. SIG, and
the aggregate of the principal and in
terest at the maturity of the bonds
viii be more than S641, 900 00O, and yet
the notes themselves, on account of
which this enormous Indebtedness has
been incurred VIII if our present policy
is maintained, remain unpaid.
'The maintenance Of a policy which
necessarily imposes upon the govern
ment the burden of furnishing gold at
the public expense to all who may de-
mand it for use or boarding a home,
or for export to other countries, cannot
be justified upon any ground of expe-
diency or sound financial principle.
and even if the periodical and fire.
quently recurring demand for gold
did not weaken the foundation Of our
entire currency system, thus impairing
confidence and depressing business, it
would nevertheless be the duty of all
who are charged with any degree OF
responsibility for the adoption of prop
er financial methods to insist upon the
reformation of our laws on this sub
iect at the earliest possible day The
issue and redemption of circulating
notes is not a proper function of the
treasury department of the govern
ment
I'VE must not be deluded into a feel
ing of security by the fact there has
been a suspension of gold Withdrawals
during the last few months and large
accession to our stock of gold from
abroad during the same time, because
there is no sufficient reason to believe
this condition of affairs viii be perma-
nent if our existing system is main
tanned.
NO system of coinage that can
be devised will furnish the gov
eminent with either gold or
silver unless it pays for it with means
contracting an Indebtedness to be paid
by the people in the future.
In nay last annual report it was rec
commended that the secretary of the
treasury should be authorized to issue
from time to time bonds payable in gold
bearing interest at a rate not to exceed
3 per cent per annum and having a long
time to run. and to exchange such
bonds for United States notes and treas
7lry notes upon such terms might
be advantageous TO the government or
to sell the bonds abroad for gold when
ever in his Judgment it M .ght be adVis-
able to do SO, and use the gold thus OBJ
tanned in making redemption of out
standing notes. I adhere to the views
then expressed. but the object to be at
tanned is so essential to the future finan-
cial safety of the country that it ought
not in my judgment to be defeated or
abandoned simply on account OF differ
ences of opinion concerning the methods
of securing it.
For reasons which were submitted at
some length in my last annual report,
and which it is unnecessary to repeat,
recommend 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-f0urth of 1 Per centum
per annum, and that authority be given
to establish branch banks for the trans
action of all kinds of business now al
lowed except the issue Of circulating