The times., 1897-05-11
SURPLUS REVENUE WANTED
{ To Provide 1t the Avowed AIm of
the Tariff Bill.

the Tariff Bill.
New York, May 1O---A Washington spe-
cial to the Journal purports to give an lin
teryiew with Chairman DingIey, OF the
Ways and Means Committee. He is re-
ported as saying:>
'sWnere there is revenue sufficient TO
pay the current expenses OF the Govern
ment and leave a small surplus, and run
takes place upon the Treasury reserve
by the presentation or greenbacks for re-
demption, these notes do not have to be
paid out to meet deficiencies and are held
in the Treasury either for exchange for gold
or for the payment of bonds. The difficulty
OF the past four years has been that we
have had n constant deficiency. amounting
to over $500 900 900, or S5o,oo0,000
per annuiu, and to meet this deficiency the
greepbaeSs presented and redeemed have
Immediately been paid out again, thus
placing thein in position requiring "a sec
ond and even third redemption. Thus,
as matter OF fact, while we have bor-
rowed about $233 900 900 of gold by
issuing bonds during the past four years,
ostensibly TO maintain the gold reserve,
yet as a matter of fact, over 500. 900, 900
OF that has in the last analysis been bor-
rowed TO meet the deficiency OF revenue
and only S93 900 900 TO maintain the gold
reserve. The result has been that we
have had the endless chain OF which Sec
rctary Carlisle has spoken, and this end
less chain is possible so long as there is
insufficient revenue To meet current.ex-
penditures.
while a deficiency OF revenue may not
have of itself created the distrUst which
caused a run on the Treasury, yet It
greatly strengthened the dstrust and
made it chronic. If we had had sufficient
revenue to meet the current expenditures
of the Government in the fiscal year be-
ginning July L, 1898, unquestionably
sale of fifty millions of bonds would have
been sufficient to maintain the reserve, as
in that case the redeemed greenbacks
would have been kept in the Treasury and
before fifty millions had been redeemed
there would have been such a scarcity OF
legal tender notes that the holders Of
gold would have been glad TO present II
to the Treasury, and obtain the more con-
venient greenbacks for use. This is neither
a theory nor d speculation, because from
1879, when we resumed specie payments,
up to 1893. during which period We had
an abundant revenue, there were Compare
lively few United States notes pre- scented
for redemption in gold, every one recog-
niZing the fact that the Government had
it in it's power to hold these notes in its
reserve to any extent, be cause none Of
them was required to meet current cx-
peGditUres.
"Unquestionabiy, if we can now secure
abundant revenue to meet all expenditure
ard leave a small surplus 10 gradually re-
duce the principal OF the war debt, there
will be little danger of any serious pro-
longed presentation OF greenbacks for re-
dempton- Not only because the fact that
we have a solvent Government viii aid in
maintaining confidence and the credit of
the Government, but also because everyone
will recoguiZ the fact that the Government
will be able TO hold greenbacks redeemed
so long as there IS a tendency for run On
the Treasury. 1t Is for this reason that the
revenue legislation now pending, designed
To secure sufficient revenue to carry on
the Government, is ofitseif fundamental
step in maintaining the credit of the Gov
ernment and averting any danger OF de-
preciation OF the currency.
.'In reply To the objection that the holding
of greenbacks, in caseOf a run on the Treas
ury. except for the purpose Of excha nge in
gold, would tend to contract the currency,
tits only necessary to say that every dollar
OF Greenbacks redeemed and temporarily
held lets cut dollar in gold, and therefore.
that the mount OF money outstanding is
not disturbed If, for example, we have
S150,0O0,0 900 of gold held III our reserve
and $50, 600, 600 of Ereenbacks are present
ed for redemption, there goes out II the
same time $4,000, 900 ofgold. Inoroiinary
times, when confidence Teisns supreme.
business is good and the revenue sufficient
10 meet all expenditures and leave a con-
siderable surplus, there Will be no run
upon the Treasury and necessity for holding
greenbacks 70 protect our reserve. Then
the surplus. win be used to reduce the prin-
cipal of the interest-hearing debt just as
it was from 1879 to 1893