The record-union., 1896-12-22
Shows Large Deficit in the Revenues
of the Government.
The Past Fiscal Year It Amounted to
Twenty-Five rliIliOnS, While at
the End of the Present Fiscal Year,
Estimated Upon the Basis of Ex-
isting Laws, the Deficiency Will
be Sixty-FOur r1illion Five Hum
dred Thousand Dollars.

WASHINGTON, Dec. 21.-Secretary
Carlisle, in his annual report on the
state of finances, shows the revenue of
the Government from all sources to
have been $409,475, ,40S, and the ex-
penditures $434, ,67S, ,654, which leaves a
deficit for the year ended June 1, 1896,
of S2o,2O3,245. In addition to the OF di-
nary revenues collected during the year
the cash in the Treasury was increased
by the following sums:
| From the sale of $10O, 10000 4 per
cent. thirty year bonds, Sill, 166, 246
and from the issue of 4 per cent
bonds in liquidation of interest accrued
on refunding certificates converted dur
| ing the year, 81, 13O, making a total of
Sill, ,170,376.
AS compared with the fiscal year 1895,
the receipts for 1896 increased $40, 1922
2Oo, of which the following are the priu-
| cipal items of increase: Customs, ST.
STD, l34; internal revenue, So, 341 1872;
| profits on coinage, bullion deposited,
etc, $1,256, ,512; postal service, $5,516,-
| $50.
There is shown to have been a de-
| crease in the ordinary expenditures Of
S4,015,S5 The revenues of the Gov
| ernlnent for the current fiscal year are
| thus estimated on the basis of exist
ing laws: From customs, $14S, 100000:
from internal revenue, $50. 900 COO;
| miscellaneous sources, $4,000, 900; from
postal service, $S9. 793. 100; total esti-
mated revenues, $4O7, 793, 12O.
The expenditures for the same period
a
an estimated deficiency for the year of
| $64 100000.
These estimates of receipts and ex-
penditures, the Secretary says, are
made upon the assumption that there
Will be no substantial change in exist
ing business conditions and that the
present scale of public expenditures
will not be reduced.
! In his discussion Of the currency uues-
tion, the Secretary makes an exhaust
i've argument in favor of the retirement
from circulation Of United States and
Treasury notes, in the course of which
he says:
| our experience since the resumption
or specie payments has SO thoroughly
demonstrated the impolicy of attempt
Ing to maintain the circulation of these
notes as a permanent part of our circu-
lat1on that further argument upon the
question seems to be unnecessary, ex-
cept Tor the purpose of again pressing
| the subject upon the attention of Con-
gress and urging the prompt adoption
OF such measures as will, within a rea-
sonabie time, eliminate this element OF
weakness from our system =
wv hile this Government has power to
borrow money, it is not it's duty to issue
public obligations merely for the pur-
pose Of providing a paper currency. for
use in the transaction of business. nor
has 1t the constitutional power to make
its promise legal tender, in the payment
of private debts Such policy. even
| If sanctioned by the Constitution. in
stead Of imparting strength and stabil-
ity to our currency system, seriously en-
dangers it by the introduction of politi-
cal and partisan considerations into the
mana cement of a subject which ought
to be regulated entirely by the business
interests of the people. and the laws of
trade, and the principles which control
honest commercial intercourse.
| Although the actual ability of the
Government to redeem it's notes prompt
| ly 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 question during the past few years
| has upon several occasions greatly i'm
periled 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 their re-
demption, and as to the means of pro-
curing and maintaining certain re-
serve for that purpose will be made DO
litical issues, and so long as shese
questions remain in politics public con-
fidence in the stability of our currency
must be more or less disturbed
Il am thoroughly convinced that the
retirement and cancellation of United
States notes of both classes, under such
reasonable limitations and restrictions
| as to time and methods as Congress
may see proper to prescribe, or as a
prudent Secretary of Treasury would
adopt in the exercise of his official dis
erection, would not result, either perma-
nently or temporarily, in an injurious
contraction of the currency"
| Secretary Carlisle renews his recon-
mendation for such amendments to the
national banking laws as would permit
| the issue of circulating notes equal to
an amount of the face value of the
bonds deposited, and reduce the tax on
notes to one-fourth of one percentum
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
notes.
On the subject of protection in this
connection, the Secretary says in part :
$50 long as the income of the Gov
ernment from its customs and internal
taxes exceed it's expenditures, the fact
that protective duties We're destructive
of revenue, although clearly apparent
to all who observed the practical opera
tion of the system, did not attract the
attention of the public generally, but
/ the situation has been materially
changed since 1892. and hereafter it
will not be possible to sacrifice revenue
to protection without seriously embar-
irassing the financial affairs of the Gov