The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-12-06
DOMESTIC AFFAIRS.
FINANCES OF THE NATION.
Resources of the TreRsury-Currency
Legislation Recommended.

The secretary of the treasury reports that
the receipts of the government from all
sources during the fiscal year ended June
80. 1898. including $S4.751, 22S received from
sale of Pacific railroads, amounted to $780,
S21. 1885, and its expenditures to $i4S, 36S.5S2.
There was collected from customs $149 SIS, 062,
and from internal revenue $170,900,64l. Our
dutable imports amounted to 1924. 7S5. 479.
decrease of $5S, 156,69O from the preceding
year, and importations free Of duty amount
ed to $291, 414.175, a decrease from the pre-
ceding year of $9O,524.O6s. Internal revenue
receipts exceeded those of the preceding
year by s24212.06S
The total tax collected on distilled spirits
was $92 546,999, on manufactured tobacco
$40, 230,5 so. and on fermented liquors $S9,515.-
421. We exported merchandise during the
year amounting to 1921, 800. an increase
of $50. ass, 774 over the preceding year.
1t is estimated upon the basis of present
revenue laws that the receipts of the gov
eminent for the year ending June 30, 1899.
will be $577,s746O7, and its expenditures
$6S9, S74,647, resulting in deficiency of $112,-
600 600.
On the 1st of December, 1898, there was
held in the treasury gold coin amounting to
$1SS, .547, gold bullion amounting tc $685.
and other forms of money amounting to
$451, 96S.9S1 On the same date the amount
of money of all kinds in circulation, or not
included in treasury holdings, was 81, $780,
SS5O4, an increase for the year of $l65, 1874 $3.50.
Estimating our population at 70 1884, GOO at the
time mentioned, the per capita circulation
was $500. On the same date there was in
the treasury gold bullion amounting TO
The provision made for strengthening
the resources of the treasury in connection
with the war has given increased confidence
In the purpose and power of the government
to maintain the present standard, and has
established more firmly than ever the ma
tlonal credit at home and abroad. marked
evidence of this is found in the flow of gold
into the treasury. Its net gold holdings on
Nov /, 1898, were 1888 SS5, 100 as compared
crease of net cash of 500, 756, 100. Nov l. 1897,
to 5000, 23S, 275 Nov. /, 1898. The present ratio
St tie 'reh neludng uniteG states notes.
treasury notes of 1890, silver certificates
currency certificates, standard silver dollarS
and fractional silver coin, Nov 1888, was
1915 per cent, as compared with 1886 per
cent, Nov. l, 1897.
RECOMMENDATIONS.
I renew so much of my recommendation
OF December, 1897, as follows:
THAT when any of the United States
notes are presented for redemption in gold.
and are redeemed in gold, such notes should
be kept and set apart, and only paid out In
exchange for gold. This is an obvious duty,
1t the holder of the United States notes pre-
fers gold, and gets 1t from the government,
he should not receive back from the govern
eminent a United States note without pay
ing gold in exchange for Ii. The reason for
this is made all the more apparent when
the government issues an Understanding
debt to provide gold for the redemption OF
United States noteS-a nOn-intereSt-bea
debt. Certainly, it should not pay them out
again except on demand, and for gold. IL
they are put out in any other way, they may
return again, to be followed by another bond
issue to redeem them-another Interest,"
bearing debt TO redeem NEUTRALITY-SUSPICIOUS.
ing debit
belief that such provisions of law would
insure to a greater degree the safety or
the present standard and better protect our
currency from the dangers TO which II lS
subjected from a disturbance in the general
business conditions of the country.
In my judgment the present condition or
the treasury amply justifies the immediate
enactment of the legislation recommended
one year ago. under which portion OF the
gold holdings should be placed In trust
fund from which greenbacks should be re-
deemed upon presentation, but when once
redeemed should not thereafter be paid out
1t is not TO be inferred that other legisla-
ton relating to our currency Is not re-
CURED; on the contrary, there is an obvious
The importance Of adequate provision
which will insure to our future money
standard,
now is to that of our commercial rivals, IS
The Companion proposition that our do
mestic paper currency shall be kept safe
and vet be so related to the needs or our
industries and international commerce as
to be adequate and responsive 10 such
needs is a proposition scarcely less lmpor-
tant. The subject, in all its parts, Is COM
mcnded to the wise consideration of the
Congress.
THE PACIFIC ROADS.
7 tatA a.
Union Pacific Railway. ihain line. was sold
under the decree of the United States Court
for the District of Nebraska, the LIST and I'd
of November of this year The amount due
the government consisted OF the principal OF
the subsidiary bonds-$27 23s, 512-and the ac-
crued interest thereon-$S1. 2l1, III. Thanking
the total Indebtedness $5S, AIS, 10 The bid
at the sale covered the first mortgage lien
and the entire mortgage claim of the gov
eminent, principal and interest"
This left the Kansas Pacific case uncons
Guided, By a decree of the court in that
case an upset price for the property was
fixed at O sum which would yield to the
government only 900 upon its lien. me
sale, at the instance Of the government,
was postponed, first to Dec. 10, 1881, anu
later upon the application of the United
States, was post poned to Feb. 16, 1898.
Having satisfied myself that the interests
of the government required that an efrort
should be made to obtain a larger sum, I
directed the secretary of the treasury, I'M
der the act passed March 3, 1897, to pay out
of the treasury to persons emitted 10 re-
ceive the same the amounts due upon all
prior mortgages upon the eastern and mid
die divisions OF said railroad, out of any
money in the treasury not otherwise appro-
Whereupon the attorney general pre-
pared a petition to be presented to this
court offering to redeem said prior liens in
such quantities as the cou.t might demand.
and praying that the United States there
upon might be held TO be subrogated TO al!
the rights of said prior lien holders, and
that a receiver might be appointed 10 take
possesSion of the mortgage premises ana
maintain and operate the same untll the
court or the Congress otherwise directed.
1hereupOn the reorganization committee
agreed that IL said petition was Withdrawn
and the sale allowed TO proceed on FEB. -
they would bid a sum at the sale when
would realize the government the entire
principal of its debts, 1900; Believing
that no better price could be obtained ana
appreciating the difficulties under which the
fgovernment would labor If IL should become
the purchaser of the road at the sale In the
absence of any authority by the Congress TO
take charge OF and operate the road, dl-
mum bid which should give the govern
men the principal of its debt the sale should
proceed. BY this transaction the govern
ment secured an advance OF $3SB,O0 over
and above the sum which the court had
fixed as the upset price, and which the re-
the maximum which they would pay for the
property.
lit is a gratifying fact that the result OF
these proceedings against the Union Pacific
system and the Kansas Pacific line is THAI
the government has received on account OK
increase Of $lSss9l 1915 over the sum whicn
the re0rg anizatiOn COMMITTEES originally