The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-12-22

our entire currency system, thus irnnairine
commence and depressing business, 1t would.
Hevertneless, be the duty of all who are
charged with any degree Of responsihiIitv for
the adoption of proper financial methods to
insist upon the reformation of our laws on
thlS SUBJECT at the earliest possible day
There is but one absolutely certain wav 70
remove this delicate and dangerous question
from our party politics, and that is to retire
ana cancel the notes. All attempts to hoard
them permanently by the government Inust
Iall Tor the obvious reason that our peopIe
VIII HOT consent to be taxed merely for the
purpose put OF accommodating and holding a large
ana useless surplus in the treasury
With liberal commercial policy nromotine,
tne prontaele introduction OF our large sur
plus products into the markets Of other
countries, and a sound currency system
promising safe investments for foreign cant
tai IN our domestic Industries, we NAV con
noentiy rely upon the operation of the natural
laws OF trade and finance for an abundant
supply OF good money to transact all the bnsi
ness OF the people and fully develop the great
resources at our command.
In my last annual report II uas reooro
mended that the secretary of the treasury
should be authorized to issue from time to
time ponds payable in gold, bearing interest
at rate not exceeding per cent per annum
and having long time to run and to az
cnange such bonds for United States and
treasury notes upon such terms as might he
sa uSt .h aaysansageous to the government, or to
MS Judgment, it might be advisable to do 81
ana use the gold thus obtained in making re
1S.Peioiin VI Outstanding notes. The terms in
WHICH tHis recommendation was made and
tne suggestions submitted in support of II
showed tnat IL did not contemplate the retire.
' mem OF all the outstanding notes at one time.
put mat the process should be so conducted
as 70 avoid any danger Of an iInproper con-
traction of the currency. Believing that this
pan pan Oh redeemlng the notes, and at the. same
1ne substituting an absolute sound CURRENCY
IN place of them, promises the most certain
means Of accomplishing the desired result
WITHIN wltnln a reasonable time, I adhere to the
a II.
tanned is so essential TO the future fironcioI
saIety OF the country that it ought not i'm nv
judgment to be defeated or abandoned simpiy
on account of differences of oninion concern
ing the methods Of securing it.
PLENARY POWER.
While an act comforting express and n1en-
airy authority upon the secretary to Issue
bonds and use them or the proceeds Of their
SAFE Ior the purpose Of retiring a certain
oniOinn u tne notes each year. would, in my
opllion, De the most effectual and economical
way to accomplish that object. it NAV he that
SO fadical a measure would not receive the
asS1nt OF congress, in the present state of the
pupHc nina upon the subject, and if So it is
submitted that, at the very least authority
should be given to retire and cancel a maxi
Iiu ii amount OF notes each year when voun-
.arlly presented by the holders and redeemed
IN gold; and II the maximum amount fixed nv
congress should not be retired and canceIlea
In any year by redemptions out of the gold
reserve, the secretary of the treasury should
be clothed with authority 10 apply to tn at mr.
pose any surplus funds in the treasury and
IN ADDITION II necessary, to issue the char
acter OF bonds above described to a sufficient
amount to comply with the provisions Of the
law. - '40
FOR reasons which were submitted at some
!ength IN my last annual report, and which
II IS unnecessary to repeat I recommend
such amendments to the national banIine
laws as would permit the issue of circuIa+in9
notes equal in amount to the face value Of
the bonds deposited and reduce the tay ON
notes to one-fourth of 1 per cent per annum
and that authority be given to estab1isT,
branch banks for the transaction of ali kinds
circulating notes.
Inc limitation upon the required
amount of capital of banks should in
the judgment Of the secretary. he re-
duced to $25, 600
In the course of his report on the pub
TIC expenditures and revenues, the sec
rotary says:
AT the close of the fiscal year 1895 the avail
able cash balance in the treasury. after de-
Quoting all current liabilities but including
Ce solo reserve Oh 800 600 OOO was $195, 240 1o3
ana at the close of the fiscal year 1896 the
available cash balance, excluding the current
liabilities, but including the gold reserve of
S1oO ,UVo OUo, was $267, 49,, O96 and increase of
S72 19l, 942. The excess of expenditures over
receipts during the year was So. 203 245 while
the deficiency during the fiscal years 1894 and
1895 was $50 SO3,2GO and $40, sos 22S respective
ly, making the total excess of expenditures
over receipts from the ordinary sources Of
revenue during the three years. $137 81. 729
The ordinary expenditures of the government
including pensions and interest on the public
debt were $31 ,29S, sos less during the fiscal
year than during the fiscal year which closed
on the goth day Of June. 1893; $15,345, 1913 less
than in 1894 and 81, 015 S52 less than during
the year 1895. The total receipts from the or
binary sources of revenue, including the pos
tai service for the fiscal year 1895, were S17,-
3d. 09 greater than fn-1S94 and for the wear
1896 they were SIS, 1902, 205 greater than in 1895
making an aggregate increase of $50, 672 913 in
1896 over the year 1894. The increase in the
receipts from customs during the year 1896
was $28, 203 2M over the receipts from the
same source in 1894, and 81, 1863 1874 in excess
of the receipts Of 1895: but during the first
ceipts from all sources have been IS, ,628
less than during the corresponding five
months of last year, while the expenditures
for the@sam time have increased $14, AS, 891,
resulting in deficiency of $39, 946, S45 on the
first day of December. The decrease in the
receipts from customs during the five months
was ST., $50, 244, while the receipts from inter-
nal taxes were about the same as during the
corresponding period of last year.
EXPORTS AND IMPORTS.
For the eleven months next preceding De-
cember 1896, the total value of our importa-
lions, duitable and free, was s116, 800, 600 less
than during the corresponding eleven months
in the calendar year 1895, the decrease in free
goods being $65, 800, 600, and in dutiable goods
$51, 500, 900. More than four-hfths of these
large decreases occurred in the first five
months of the present fiscal year the falling
off during that period being $50, PSI, 900 in free
goods and 81, 679 900 in dutiable goods
1t is believed that a careful consideration OF
the existing situation and conservative al
lance upon improved business conditions In
the future, fully justify the conclusion that
the estimated deficiencies for the current
year and for the year 1898, will not be real
lied, unless our public expenditures shall be
very materially increased by acts of congress,
and that with proper economy in administra-
ton and such reductions in appropriations
as might be made without detriment to the
public service, the receipts will be equal to
the disbursements in 1898.
But however this may be, the condition Of
the treasury Is such that no revenue legisla-
necessary for g considerable time, In order
to enable the government promptly to meet
all its ordinary obligations.
Much the greater part of the estimated de-
hciency for the current fiscal year has al
ready been incurred and has been paid
leaving still in the treasury, on the first day
after deducting the gold reserve, is about
$100,0 600 more than is necessary per-
manent fund to insure the regular conduct Of
the ordinary fiscal operations OF the govern
ment. The fact that this money was not
collected by taxation, but was procured by
the issue of bonds. for purpose other than
the payment of ordinary expenses does not
affect the situation in the least.
What is most needed at present is not
more taxes but more economy in appropria-
lions and expenditures.
The great increase In the ordinary expendi-
lures Of the government during the last seven
years has been without precedent in our his
tory in time Of peace and presents a subject
which imperatively demands the most serious
consideration of congress.
An examination Of the expenditures and
objects. for which they were made, shows
that during the first period of four years
1856. 1887. 1888 and 1SSs-the average annual