Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1897-03-19
President McKinley's Message
On the Government Finances, Sent to
the Special Session of Congress on
Monday.


quired me to call you together, | feel that
your assembling in extraordinary session is
indispensable because of the condition in
which we find the revenues of the govern.
ment.
1t is conceded that its current expendi
lures are greater than its receipts and that
such a condition has existed for now more
than three years. With unlimited means
at our command, we are presenting the re-
markable spectacle of increasing our public
debt by borrowing money to meet the ordi.
nary outlays incident upon even an eco.
nomical and prudent administration of the
government. An examination of the sub.
ject discloses this fact in every detail and
leads inevitably to the conclusion that the
condition of the revenue which allows it is
unjustifiable and should be corrected.
We find by the reports of the seci etary
OF the treasury that the revenues for the
fiscal year ending June 30, 1892, from all
sources were 1926, SOS, 2G0.22, and the ex.
penditures for all purposes were $415, 053,-
SO6.56, leaving on excess of receipts over
expenditures of SOFA 453. 60. During that
fiscal year S40,570, 4679S were paid upon
the public debt, which had been reduced
since March 1, 1889, $3.50, 07G, 500, and the
annual interest charge decreased S11 ,6S4,
$1,000. The receipts of the government
from all sources during the fiscal year end
ing June 30, 1898, amounted to S471,71G,-
56l.94, and its expenditures to S4G93 :
SSGGj, showing an excess of receipts over
expenditures of S2,341 ,G7429.
Since that time the receipts of no fiscal
year, and with but few exceptions of no
month Of any fiscal year have exceeded the
expenditures. The receipts of the govern
ment from all sources during the fiscal year
ending June 80 1894, were S372, S02, 49S ~,
and its expenditures were S442, GOj, 7jS. -,
leaving deficit, the first since the resump-
ton of specie payments, of S69, SOB.
2GO.jS. Notwithstanding there was a de-
crease of SIG, go, 12S.7S in the ordinary
expense Of the government as compared
with the previous fiscal year, its income
was still not sufficient to provide for its
daily necessities and the gold reserve in the
treasury for the redemption of greenbacks
was drawn upon to meet them. But this
did not suffice, and the government then
resorted to loans to replensh the reserve.
In February, 1894, $4,000, coo in bonds
were issued and in November following a
second issue of Sj0,OOO,OOO was deemed
necessary. The sum of S117,171,7 9j was
the reserve was steadily decreased until
on February 5, lsg5, a third sale of So, e
80, 400 in bonds for SGj, 11G,244 was an
nounced t. Congress.
The receipts of the government for the
fiscal year ending June 80 1865, were
$500, 373, 2O3.3O and the expenditures
S433, LIS, 426.4S. showing deficit of So
S0j, 223. TO- A further loan of 100000.
(UHl u ae iott1 la Ina. 10,
February, 1896, the sale netting Sill, 1G6,-
DAG, and swelling the aggregate of bonds
issued within three years to S2G2, 80, 400.
For the fiscal year ending June 80 1896,
the revenues Of the government from all
sources amounted to s409, 475, 40s. IS, while
its expenditures were S434, G7S, Gj4.4S, or
an excess of expenditures over receipts of
S2j, 203, 24j.70. In other words, the total
receipts for the three fiscal years ending
June 80, 1896, were insufficient by S137,-
S11, 729. 40 to meet the total expendit Tres.
Nor has this condition since impro 5ed.
For the first half of the present fiscal year
the receipts of the government, exclusive
of postal revenues were $751;, j07, 603. rs,
and its expenditures exclusive of postal
service, S195, 410, 000.22, or an excess of ex-
penditures over receipts of S37, 902, 1896. 49,
elusive of postal revenues, were S24,3l6,-
994.05. and the expenditures, exclusive of
postal service, $50, 269, $50 %. a deficit of
50 ,952, 800. "A for the month. In February
of this year the receipts, exclusive of pos
tai revenues, were S24 400, 997 Is, and ex-
penditures, exclusive of postal service.
S2S, 100, 056,GG, a deficit of $685., 0j9. rs,
or a total deficiency of S1SG,0G1 $50 A for
the three years and eight months ending
March |, 1897. Not only are we without
a surplus in the treasury, but with an in
crease in the public debt there has been a
increase in the annual in
terest charge from So, S93, $50. 20 in 1892.
the lowest of any year since 1852, to S34,-
jS7, 297.G0 in 1896 or an increase of Sill
400, 4l4.40.
1t may be urged that even if the reve-
nues of the government had been sufi-
cient to meet all the ordinary expenses dur.
ing the past three years, the gold reserve
would still have been insufficient to meet
the demands upon it and that bonds would
necessarily have been issued for its reple-
ton. Be this as it may, it is clearly mani
fest, without denying or affirming the cor.
rectness of such conclusion, that the
debt would have been decreased at least
the amount of the deficiency and business
confidence ilnmeasurably strengthened
throughout the country.
Congress should promptly correct the eX-
listing condition. Ample revenues must
be supplied, not only for the ordinary eX-
penses of the government, but for the
prompt payment of liberal pensions and
the liquidation OF the principal and inter-
est of the public debt. In raising revenue,
duties should be so levied upon foreign
products as to preserve the home market,
so far as possible to our own producers
to revive and increase our manufactures:
to relieve and encourage agriculture: to
increase our domestic and foreign com
merce; to aid and develop mining and
and to render to labor in every
field of useful occupation the liberal wages
and adequate rewards to which skill and
industry are justly entitled
The necessity of the passage of a tariff
law which shall provide ample revenue
need not be further urged. The impera-
live demand of the hour is the prompt en-
lctment of such measure, and to this OBJ
ject | earnestly recommend that Congress
shall make every endeavor. Before other
business is transacted, let us provide suffi-
cient revenue to faithfully administer the
government without the contracting of
further debt or the continued disturbance
If our finances.
WILLIAM MCKINLEY.
Executive Mansion, March -, 1897.
For Over FiftV Years