The daily morning journal and courier., 1898-05-07
SECRETARY CAGES STATEMENT.
Requirements of the Treasury to Meet the
 Demands of War.

DeIhauds or war; .
 Washington, May 6.--The testimony of Secretary Gage concerning the con- dition of the treasury and it's require ments in order to meet the demands of war, as given before the senate com mittee on finance, was made public to- day. The secretary stated the availa- ble balance in the treasury on April 30 at $179, ,S32, ,437, but from this it was, he said, necessary to deduct the $50,000,000 appropriated for the national defense. He estimated that when the deficien- cies in the war and navy departments were met there would be a balance of $91, ,000,000 The secretary estimates that he will require $50000,000 to meet the demands coming in from day to day. He said all told the treasury could count upon about $71,000,000 at present outside the gold reserve.
 He thought that from $40,000,00O to $5O,0o0,000 in addition to the ordinary revenues would have to be realized be- tween now and July 1 to preserve the gold reserve intact. Without this extra | fund he thought the reserve would be reduced to the extent of $30000,0 900, leav ing in the treasury only $70,000,000 all | told at the end of the fiscal year. Mr. | Gage said he knew of no other method | for raising this extra money except by | taxation or by the sale of bonds. Sem ator Turpie asked if he could think of no other method. The secretary re- piled: q cannot think of any other method to which I think it would be proper and safe for the government to resort except the issuance of treasury | certificates. I think it is a legitimate operation to borrow in any way you can make it acceptable to both parties in | the contract
 | The secretary refused to furnish an estimate of the expenses of war after July 1, but he gave the committee what | he called a guess" based on the best information obtainable, placing the fig ure at $25, 900, 900 month in addition to | the ordinary expenses. MT. Gage ex- pressed the opinion that it would not be | possible to place as much as $100, ,000, 900 | of the loan among individuals and in small sums. Explaining his reason for this opinion, he said: "Our people are very different from the French people, l if you please, in whose country there l are no savings banks. In our country there are five million people who have l money in savings banks at a general average rate of interest at four per cent The money, is available to them at any moment. NThe temptation and self-interest to invest in three per cent l Iirf1J fonf,. tln 1,olo | in the savings banks is not very great
 In France the individual has his mon ey, his little savings. slowed away in a stocking or q sack, or a private hoard. It is in cash. It is drawing no interest l and when the government put out a loan it is his opportunity"
 To this statement Senator Wolcott took exception, saying: The secretary allows nothing for the patriotic desire | of the people to support the govern ment and take bonds at less interest than they can get in a savings bank i He assumes they as well would be gov
 erned entirely by selfishness."
 1 MT. Gage-"You asked my opinion as to what proportion of these bonds l will be taken by individuals. I don't
 think my opinion is worth any more than that of any other gentleman here
 but I don't believe the whole $1OO,- 100000 will be subscribed or offered fol
 individuals? Is that your idea?" Sec
 sincerely hope I am."
 Senator Wolcott-"Then if $500, ,00O, ,00t
 should be offered you think that mucl
 less than $100,0 900 would be taken by
 individual? Is that your idea?" Sec.
 retary Gage replied: q think the quan.
 tity offered would not make very
 large difference in the quantity taker
 by individuals"