Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-09-14
Treasury Officials Still Believe One
Will Be Necessary
NOMATTER Who IS ELECTED PRESIDENT
A Bad Financial Showing Thus Far
in the Fiscal Year.
THE GOLD ESERV We

The conviction that an extra session of
Congress will be required to provide for
an increase of the revenue has not been
impaired among Treasury officials by re-
cent political events. A victory for either
Mckinley or Bryan in November, with a
Congress favorable to their views, would
probably result in an extra session for the
purpose of tariff legislation in the one
case or free silver legislation in .he other
Some doubt has been felt whether il would
be worth while for Mckinley TO call an
extra session, if 1t should be apparent that
the republicans lack a working majority
deserters. The republicans have lald SO
much stress, however. upon the unwisdom
or permitting a deficit and selling bonIs
TO provide revenue, that they are not ex-
pected TO perpetuate this condition of
things. even until December, 1897. The op-
ponents of the free silver movement, with
out distinction of party, believe that there
will be revival of business activity as
soon as 1t Is definitely known that the
United States proposes 10 adhere to the
gold standard. This revival of activity
viii mean larger customs receipts and
larger internal revenue payments. The Gus
toms receipts especially will mount rapid
ly upward if a general Increase Of tariff
rates is expected as the sequence of re-
publican success This element may not
influence the customs receipts if it IS ap-
parent that the republicans lack the votes
in Congress to indulge in a general re-
vision. The increase in customs receipts
Will probably not be strongly felt until
January, and will not produce marked re-
suits upon the deficit early enough TO justi-
fy Maj Mckinley in abandoning the prof.
ect of extra session.
A bad Treasury Showing.
The treasury showing has been a very
bad one thus far since July 1. and has al
ready shown an accumulated deficit in two
months and half nearly equal to the en-
tire deficit for the last fiscal year. This is
siooooSo worse than the showing for the
same period in 1898. The receirs for the
fiscal year 1896, for the ten weeks ending
September II. 1895, were 500 U;S5 967, and
the expenditures were SS3 154.14S The re-
ceipts for the same period this year have
been tl,-s'262 and the expenditures have
been $SSGuc IN The increase of expendt-
lures mas been chiefly due to the payment
OF &.W",tD for the sugar bounty, whose
ConStitutionality was upheld by the ST.
Irc1s Court, against the ruling of Control
Ter Bowler The falling off in receipts has
tean entirely IN customs. which Paid SO
sr''dNi for the first ten weeks of 1896. and
have paid only s29,t49.113 for the corrc-
sronding weeks of the fiscal year 1897. The
internal revenue receipts advanced from
Ss'.IpI,2l1 last year to s36. sic fsis this year.
and they are not likely to fall back The
general treasury balance Is now SOL 600 py0
more than A year ago and stands at s242-
SIl.IlJ. This S61 100000 IS all that remains
OF the sl110oo.@0 realized from the last
bond sale. The difference has gone to
bridge the deficit for last year and this and
to cover the redemption of some Pacific
railroad bonds. The month of September
showed surplus last year, and NAV do so
nj he aiY.ts for
are already hearty si,00,000 less than a
year age.
The Gold Reserve.
The treasury is better equipped to meet
the demand for currency than was the case
last year, and the recent development of
this demand Is helping to protect the gold
reserve. The next President may be saved
from an immediate bond issue as the result
of the operations now going on for putting
gold into the treasury. A demand for s1O,-
WO.OO In currency Is expected from New
Orleans during the next two weeks. includ-
ing the million or two already paid out
The monetary pressure upon the New York
banks is leading them to surrender their
gold in exchange for currency and to offer
gold at the New York subtreasury in ex-
change for currency delivered elsewhere
The deposit of a considerable quantity of
Australian gold at San Francisco, which Is
now promised. will enable the banks to
where 1t is needed In exchange for this gold
There IS little doubt that Acting Secretary
Hamlin will grant the request which is like
ly to be made for the acceptance of gold at
san Francisco by the government in return
FOR the delivery of currency at designated
points The gold reserve will probably
touch Sl2o,ut0tsB before the present upward
movement Is at an end. The amount posi-
lively assured on Saturday was Sl13 $50 800
and Assistant Treasurer Jordan telegraphed
from New York that several millions more
were in the ASSAY office in process of count
ing, or were definitely promised. An in
crease of the reserve to Sl2J. .0oO.0 would
enable the treasury to meet a considerable
export demand in January and February
without carrying the reserve below 500, 900 =
op- The reserve stood at slo3,2Si.21S on
February -. 1888. just before the present
administration entered Office. 1t is believed
TO be the amCition of Secretary Carlisle to
turn this reserve over unimpaired to mis-
successor, but he probably does not care to
materially increase 1t.
What Will Confront the New Presf-
dent.
The new President If he is supporter
of the gold standard will be confronted
by two obligations the 4th of March
next-to terminate the deficit in the reve-
nues and to protect the gold reserve. The
republicans have claimed that the abolition
of the deficit would arrest the loss of gold
An extra session of Congress- therefore
to the revenue problem first and to the
gold problem afterward. The prospect is
considered brighter by the republicans for
controlling a majority in the Senate than
was the case a month or two ago The
sweep of the silver current was then 50
powerful that 1t seemed probable that sii-
Yer Senators would sit in the next Senate
from Kentucky. Missouri, Kansas and the
Dakotas, even If the republicans succeeded
in choosing their President There is now
more hope of choosing republican Senators
in some of these states, but it is still
doubtful If q majority in the Senate can
be found which will support strong pro-
tectionist policy. The new administration
In the absence of sound money republi-
can majority. will have to choose between
winning the support of the silver repubii-
cans on the one hand and the gold demo-
Gratis on the other. Some of the silver re-
publicans may come back into the party
traces If they are badly whipped in No
vember, but they are likely to demand
some concessions to silver before they will
vote for protectionist legislation This will
drive Maj. Mckinley to the sound money
democrats. They will stand steadfastly by
him in financial matters and will probably
be willing to change the law regardir z