The citizen. (Frederick City, Md.) 1895-1923, 1897-11-26
A BIG BOND ISSUE.
Mckinley May Have to Order One
to Meet Current Expenses-Pen-
sions Alone Exceed the Entire
Revenue Receipts-Can Congress
Afford Relief?

While the Taiifi bill was pending in
the Senate last summer the New YORK
Journal made it clear to the public
that the measure was not going to be
a great revenue producer. The law
has been in operation several months
and is beginning to bear out the Jour
MATS claim. The Treasury officials are
realizing, says that paper, that ii will
not produce revenue sufficient to meet
the EXPENDITURES of the Government,
either this year or next, and they are
doing what they can tn retrench. But
do what they may, the future is not
very encouraging anu bond issue APP
pears probable TO tide the Governme MT
over its period of distress
The total expenditures for the fiscal
year 1897 were 1865 IA 900. ana they
are constantly increasing. The pen
sion list is being swelled annually, and
for the current year Geficit of $6.0O0,-
OG0 Will have to be provided for by
Congress, making the total of peuslnn
expenditures $l47, 900 900, or slightly
in excess of the entire internal revenue
receipts for 1897.
The Navy Department has asked for
an increased appropriation for the con-
structIon of war vessels. The eXten-
sive coast defeuces in course of con-
struction by the War Department Will
require increased appropriations to con-
tinue the work. The business depres-
sion has caused postal receipts to fall
$4,000. 900 below the postal revenue,
and this deficit will have to be prOvid-
ed for by Congress.
MORE PUBLIC BUILDINGS.
The policy of the Treasury in delay
ing the construction of public build
ings, many of which were appropriated
for two years ago, has had to be
changed under the political and COM
mercial pressure, and 0retary Gage
announces that he will push them to
completion. There are Dow thirty
three public buildings in course of con-
structiOn, including the immigrant sta
ton at Ellis Island, which will cost
$500, 600, and have to b. paid for out of
this years receipts. For several years
back all river and harbor improve nent
has been curtalled to minimum. This
year there will be an organized effort
in Congress TO push through ii big bill,
that the Congressman who are candl-
dates for reelection may improve their
standing with their constituents.
1t is this condition that il causing
Secretary Gage apprehension as IT, the
future. The deficit at present is S45,-
000, 900, but when the proceeds of the
sale of the Union Pacific are paid in it
will he reduced. Congress Will find
the available balance in the Treasury,
including the gold reserve of $l57, O00,-
600, less than $2l0,000,000, leaving the
currency with which to transact cur
rent business dangerously low, consld-
ering that it has to he distributed
among nine Sub-Treasuries of the c0un-
try.
In this predicament Secretary Gage is
holding expenditures tn the lowest
notch. He says he can tide over affairs
until sometime in the early spring, and
he hopes Congress, in the meantime,
will afford relief. He may be able to
do this, owing to the fact that the
Treasury will receive in currency,
apart from the bonds deposited from
TIE SuI6 VI lllc OulOIl L INdIlIOdu,
$54 900, 900, which, after deducting
$50 600 600, due January l, 1898, on
bonds of the other Pacific railroads.,
will net the Treasury $24, 600, 900 in cur-
reucy.
Without this sum the Treasury
would not be in position to pay its
debts in currency and would have to
resort to gold payment or bond issue.
No member Of the Administration Is so
optimistic as to express the belief that
Congress will or eau IN the present con-
dtion Of political parties pass this win
ter any me assure of currency relief or
any measure to increase the revenues.
With deficit that is constantly grow
ing, and without relief from Congress,
Treasury experts fear the Administra-
ton will be confronted in the spring
with the necessity of issuing bonds to
carry ON the Government.
1t is apparent now that had not the
Cleveland Administration issued bonds
the Treasury account would To-day
stand thus: Bonds issued, $262, 900, 600;
reaIized. $293 0OO 600; Treasury balance
to-day, 500, 900, 900; difference, $9l ,000,-
900. Iu other words the Treasury
would now he SOL 100000 worse off
than nothing. The conditions which
co front the Administration and Con-
gress are indeed serious.