Evening star., 1900-12-04

For better understanding of the above
tabulation 1t may be- we'll to explain that
by the payment of ss4,922,O ,OO6, future pay
ments of interest. : which would have
amounted to s43. 75OQ5s, have been antic.-
pated, with net and final saving of the
difference. s.. 1928. .052.
The Secretary believes that the suspen-
sion of the refurding process will put the
maturing debt under better conditions Cthe
governments interest alone considered)
either for purchase from time to time or
for payment when due.
1t Will, or course, remain open for the
department to resume refunding should the
interests of the government and the gen.
eral conditions Of finance make such a
course deStra bic.
Proposed Reduction of Revenue.
The Secretary says:
From the estimates of receipts and ex-
penditures for the fiscal year 1902 there
promises to be an excess of receipts to the
amount of s26.OO0O0O. 1t is hardly neces-
sary to point out that estimates are at best
approximate. Exigencies in the public
service which cannot be anticipated may
Congressional appropriations, extraordinary
in character, or failures to realize fully
estimated revenues, are also influences
which may operate seriously to derange
margin should, therefore, be reserved in
forecasting definite results based on hypo-
thetical calculations.
IAN annual excess in receipts over expen-
ditures Is the best Endorsement of the ma
tienal credit, while a deficit is a depressing
factor in public finance. 1t has been our
wise policy In the past to reduce the public
debt in time of peace, and to this good pol
icy may be attributed, to a high degree, the
low rates of interest, hitherto unprecedent-
ed, which now attach to our government
debt obligations. 1t is true that for q
period of six years from 1894 to 1880 in
c1 Sjy deficits
be hoped that this was temporary inter-
ruption to a history of twenty-e!ght years.
when each year showed annual expenditures
less than annual revenues
''The operation of the act of February
25, 1862, providing for a sinking fund, con-
templates the payment or purchase and
cancellation of substantially $5O,00O,00O an
nually of our interest-bearing debt obliga-
tions. Owing to the unfavorable condi-
tions in the treasury during the six years
just referred to the sinking fund was en-
tirely neglected.
I'm the absence of any expression to the
contrary, 1t may be safely assumed that it
is the desire of Congress to observe faith
fully the general requirements of the sink
ing fund act, and to provide revenue suffi-
cient to meet the charges thus imposed upon
the government. The present and prospec-
tive easy condition of the treasury justifies
the belief that the sinking fund require
year and for the next fiscal year, and still
permit a moderate reduction in taxes i'm
posed by the war-reVenue act. A reduction
to the amount Of $30,O0O,00O is, therefore,
recommended to the consideration Of the
present Congress.
The Money Standard and the Currency
.sThe operation Of the act of March IA
last with respect to these two important
matters of our finances has we'll exemplt-
fed it's wisdom. Confidence in the purpose
and power Of the government to maintain
the gold standard has been greatly
strengthened. The result is that gold flows
toward the treasury Instead of away from
it. At the date Of this report the free gold
In the treasury Is larger In amount than
at any former period in our history. In
cluding the $150 100000 reserve, the gold in
the treasury belonging to the government
amounts to over $242, 100000, while the
treasury holds, besides, more than $230 ESQ.,
O0O, against which certificates have been
issued.
THAT provision of the act which liberal
lied the conditions of bank-note issue was
also wise and timely. Under it, as pre-
viously shown in this report, there has been
an increase of some 1900 600 in bank-note
issues. To this fact may be chiefly attrib-
uted the freedom from stress for currency
to handle the large harvests of cotton,
wheat and corn In this respect the year
has been an exception to the general rule
of strtngency which for several years has
SD plainly marked the autumn season.
Further Legislation.
Nevertheless. the measures referred to.