Evening star., 1896-01-04
THE FINANCIAL SITUATION
The House Tariff Bill May Be Adopted
Without Amendment.
A Contention Between the Republf-
cans and the Administrations
Mr.. Dockery's Views.

No advance was made today toward the
solution of the problem before the Senate
for the relief of the financial situation. The
indications are that If anything at all can
be done as to the tariff it must come
through the adoption by the Senate of the
House bill without amendment. 1t is pos
sible that this may be DONE as discussion
is tending in that direction.
The matter has come down to a conten-
ton between the republicans in Congress
and the administration as to whether reve-
nues are needed. The democrats in Con-
gress are lining up on the side of the ad-
ministration on this question, only that
they do not say that the revenues are suf-
ficient. but that there is sufficient money in
the treasury.
A reporter Of The Star today asked Rep
resentative Dockery. who is one of the ap-
preparation experts of the House, what he
thought of the proposition to procure more
income for the government
MIR. Dockery's View Of the Case.
II am somewhat surprised he said,
that Chairmen Dingley and Cannon, with
other republican leaders of renown, should
persist in the statement that the assault
upon the gold reserve is consequent upon
iradequate revenue. 1t is conceded that the
current liabilities of the government exceed
its ordinary current income. That is to
say, the ordinary miscellaneous, postal.
customs and internal revenue receipts are
not adequate to meet current liabilities. 1t
must be remembered, however. that the
government has supplemented its ordinary
resources by 1872 millions of gold. realized
from the sale of bonds. In other words.
the Secretary of the Treasury has borrowed
this gold. which. after having been once
tn rod ov1,o ookc nd
man notes, under treasury construction, is
thereafter available for current expend-
itures. The treasury statement OF yester-
day evening shows an available cash bal
ance in the vaults Of the treasury of $11S,-
31666O.97, of which s62. .7o9. .O46.S9 consti-
tutes the gold reserve.
Il admit that borrowed money is not the
most desirable form Of income, but it is
true that the government has actually aug
mented it's resources by this method. The
question is not, therefore, one of theory,
but of fact. and it is beyond cavil, that the
national treasury has now in its vaults
SIS, ,316 660.97 over and above the 1O0-million
requirement of the gold reserve. This sur
plus with the usual revenues of the gov
ernment will be ample to meet all our OBJ
legations for at least two years. Then why
sources to swell the volume of a surplus
already too large?
Indeed, should the present surplus be
reinforced by the enactment of the Dfngley
Dill, OF Dy the proceeds OF addiuonai oonu
sales, 1 fear this drain will severely tax
the business interests of the country, al
ready intimfdated by stringent money
market.
"A very large treasury surplus will in
evitably injuEi6usly affect the business sit
uation, because the money in active circu-
lation is already inadequate to meet the
requirements of trade and further with
drawals to restore the treasury reserve will
still further contract the volume of active
money, 1t is q yexing problem to restore
and maintain the treasury reserve along
the lines of a single gold standard, and yet
escape the perfls of an unnecessary surplus
Of money other than gold.
Reform is necessary in the existing
monetary system, Under which the nation
al treasury may have very large surplus
available for current liabilities, while at
the same time our gold resources may be
depleted and exhausted by the endless
chain of greenbacks and Sherman notes :"