The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1902-02-05
BIG SURPLUS A MENACE
Administration Leaders Are Anxious
For a Solution Of the Difficulty.
BOND PURCHASES UP TO LIMIT

Secretary Gage Has Been Fortunate In
Getting Offers, But There is Now No
Supply Of Purchasable Bonds on tho
NIarket-Most of tho War Taxes May
BE Repealed-A Decline In Receipts.
Washington, D. C.-The problem OF
the surplus in the Treasury continues
to be q source of serious discussion
among the Administration leaders in
Congress.
A ray Of hope that the surplus might
be kept under control has been afford
ed by the range Of receipts and expen-
ditures thus far this month. Receipts
have been about S1.OOO,O00 less than
for the same period last year. and ex.
penditures have been trife more.
This has contributed to reduce the ex.
cess Of receipts for the first eighteen
days Of January froCl $1,000, ,542 last
year to $2,593,04 this year.
There has been an increase Of the
surplus thus far during the fiscal year
from $22.517, PAT last year to $45, ,214..
946 this year. The reason for expect.
ing a check to this increase Is the fact
that army and navy expenditures first
began to drop back toward their old
normal figures before the Spanish war
at the beginning Of last year.
These expenditures are still much
larger than when the army contained
only $1,000 men, but they are distinctly
less than during the war and during
the many months when contracts grow.
ing out Of the war were still being set
tied at the Treasury. Military expen.
diture is approaching, although it has
not quite reached, the normal basis Of
a peace establishment Of about $4,000
regular troops. There will not be.
therefore, the same decline in military
expenditures during the next six
months as took place during the last
six months, in comparison with tho
previous year.
Notwithstanding these calculations,
the surplus Of receipts over ordinary
expenditures for the entire year prom
ises to be $1OO,00O,000. This would
raise the available cash balance, which
stood on Saturday at 171,227,914, to
about $225, 100000 at the close Of the
fiscal year on June so next.
In what way to get rid of the sur
plus in the Treasury continues to be
problem which grows more difficult
with the absorption Of the surplus of
purchasable bonds on the market. Sec
retary Gage has been rather fortunate
during the past week in taking up
bonds which the holders were ready
to sell at the liberal premiums paid by
the Treasury. The amount purchased
this month has been nearly $4,000, 900,
and the disbursements have been a
trifle more.
The total Of bond purchases since
November 1 has. however. reached only
$40, 732, ,290 Of which about $11, ,O00,-
600 were purchased in November, and
the remaining amounts have been
spread over seven weeks. The amount
gotten rid of in this way from the
Treasury surplus has been S24, III ,545.
The bonded debt has now fallen to
about 40,O00,000, and shows reduc-
tion Of about S10G,000.000 since the
summer of 1899.
The subject Of reducing the revenue
will be taken up by the Ways and
Means Committee as soon as reciproc
ity with Cuba has been disposed of.
This will be some weeks or months in
the future, but the new Secretary Of
the Treasury will then be in Office, and
will be able to present his views to the
committee.
1t Is anticipated that the taxes levied
by the War Revenue act Of 1898 will
be for the most part repealed, but there
may be some question in regard to the
increase on beer and the import duty
levied on tea. A reduction Of nearly
$10,000,000 will be made in the annual
revenue if q concession of fifty per
cent. is made on Cuban sugar entering
the United States. but this will con-
tribute only small fraction Of the de-
sired reduction in the revenue.