Democratic Sentinel, Volume 19, Number 13, Rensselaer, Jasper County, 5 April 1895 — ASKS FOR NEW LAWS. [ARTICLE]

ASKS FOR NEW LAWS.

SECRETARY CARLISLE PROPOSES SOME REFORMS. In Hia Annnal Report He Suggests a Few Badly Needed Changes in the Currency Legislation—Would Revise the Bond Laws. Changes Must Be Made. The annual report of the Secretary of the Treasury on the state of the finances haa been sent to Congress. It shows that the revenues of the government from all ’ sources for the fiscal year ended June 30, i 1894, were $372,802,498 and the expendil tures $442,605,758, which shows a deficit :of $69,803,260. As compared with the fiscal year 1893 the receipts for 1894 fell off $88,914,063. During the year there was a decrease of $15,952J»74 in the ordinary expenditures of tljb government. The revenues for the current fiscal year are thus esti- ! mated upo,n the basis of existing laws: From customsf 160,0(10,000 Irom Internal revenue 165,000,000 f rom miscellaneous sources 15,000,000 From postal service 84,427,748 Total estimated revenue 55424,427,748 Ike expenditures for the same period are estimated as follows: For the civil establishments9l,2so,ooo lor the military establishment.. 53,250,000 For the naval establishment.... 32,500,000 tor the Indian service 11,500.000 lor pensions 140,500,000 For Interest on the public debt.. 31,000,000 *or postal service 84,427,748 Total estimated expenditures. .$444,427,748 lhe above figures, compared with the estimated revenues, show a deficit of $20,000,000. It is estimated that upon the basis of existing laws the revenues of the government for the fiscal year 1896 will be: From customsslßs,ooo,ooo From Internal revenue 190,900,000 I'rom miscellaneous sources 15,000,000 1< rom postal service 86,907,407 Total estimated revenues $476,907,407 The Secretory thinks many small district offices should be consolidated and a genera] reorganization of the customs service made. He also asks for SIOO,OOO per annum for investigating Chinese cases and paying expenses of deportation, owing to the new treaty with China. Subject of Currency Reform. The most important feature of Mr. Carlisle’s report is his discussion of the subject of currency reform, in the course of which the administration’s plans of a new system of currency are set forth in detail. Mr. Carlisle reviews the financial statistics referred to in the tabulated statement and charges $3,022,000 of the deficit to the importation of raw sugar prior to the time the new tariff law went into effect. The income tax will afford no revenue till July 1, 1895, but there is reason to believe the importation of sugar must soon be resumed on a large scale, and he thinks by July 10 considerable collections under the income tax law will have been made. He is of the opinion that the execution of the present laws will yield sufficient revenue for 1896 and leave a surplus of $28,814,920. In urging financial legislation for the purpose of supporting the public credit Mr. Carlisle says: “The well-known defects In our financial system and the serious nature of the evils threatened by them have done more during the last two years to impair the credit of the Government and the people of the United States at home and abroad and to check our Industrial and commercial progress than all other things combined, and our first and plainest duty Is to provide, if possible, some effective method for the prompt and permanent relief of the country from the consequences of the present unwise policy.’’

The Secretary then reviews the circumstances leading up to the first $50,000,000 issue of bonds, yielding $58,660,917 and increasing the free gold in the treasury to $107,440,802. The lowest point reached by the reserve since the resumption of specie payments was on the 7th day of August, 1894, when, by reason of withdrawals in the redemption of notes, it was reduced to $52,189,500. After that date it was slowly replenished by voluntary exchanges of gold coin for United States notes by the banks and by small receipts of gold in the payment of dues to the government until the 14th of November, 1894, when it reached the sum of $61,878,374. In the meantime, however, the frequent presentation of notes for redemption in gold clearly indicated the existence of a feeling of uneasiness in the public mind. In addition the vast accumulation of money at oftir financial centers and the general depression in business which prevailed in this country had so reduced the rates of discount that the inducement to keep funds abroad was much greater than in ordinary times and made it highly imprudent to neglect any precaution which appeared necessary to insure the safety of our financial position. Therefore, the second issue of $50,000,000 was decided upon. The proceeds of the sale, $58,538,500, have nearly all been paid into the treasury, according to the terms of the sale, reducing the rate of interest to 2.878 per cent. The transaction justifies the opinion that a 2% per cent, bond could probably have been sold at par. Here the Secretary asks for a law giving him such authority, saying it would strengthen public confidence. Preservation of the Gold Reserve. With regard to the redemption of government obligations the Secretary shows his attitnde on the hard money question and says the one who presents paper for redemption must be given his choice of metals, aS a change Would work hardship on the public and nation. This condition cannot be permanently remedied except by great changes in the laws relating to the subject. The situation is the result, too, of three policies: The circulation of United States notes as currency and their current redemption in coin on demand; the compulsory reissuance of such notes after redemption; the excessive accumulation and coinage of silver and the issue of notes and certificates against it at a lower ratio than is warranted. He continues: “Frequent issues of bonds for the purpose of procuring gold, which cannot be kept after it has been obtained, will certainly cause increased distrust among our own people as well as among the people of other countries and not only swell the volume of onr securities returning from abroad for sale or redemption, but Increase the withdrawal of foreign capital heretofore Invested in our domestic enterprises. “It is not the capitalists alone whose interests are affected by the use or threatened use of a depreciated and fluctuating currency and the consequent derangement and diminution of business. A paralysis of business, whatever may be its cause, strikes first the wage-earner. “Under our present currency system, the volume of circulation Is unchangeable; It Is unalterably fixed at a certain amount and no matter how great the emergency may be It can be neither enlarged nor diminished. The only part of the currency possessing In any degree the quality of elasticity is that Issued by the national banking associations and it is now generally conceded, I believe, that in this particular, at least, it has failed to meet the requirements of the situation at some of the most critical periods In business affairs of the country.” The National Bank Question. With regard to the “Baltimore plan” for national banks the Secretary says: “As the plan suggested proposes to exempt the Government of the United States from all liability for the redemption of national bank notes and place the sole responsibility upon the banks themselves, a guaranty fund of not less than 30 per centum upon the outstanding circulation is regarded as a very proper and necessary feature of the system.’’ Then coming down to the tariff he says: “The raw materials used in the production Of commodifies for the use of the people In their homes' and in their various Industrial .1 pursuits should be free from . taxation. IfMr ladastrles are to be profltaUly conducted

red need co«t of production moit precede or accompany reduced prices of the finished product. ‘-The late act while It places upon the free list a considerable part of most Important raw materials used in our manufacture, left Iron and lead ores and bituminous coal, together with sever « other articles of lA* consequence, still dutiable, thus not only falling to put in force a consistent system of revenue reform but leaving some of our most valuable Industries at a great disadvantage as compared with their rivals differently located.” CARLISLE’S ESTIMATES. Secretary of the Treasury Thinks He Can Get Along; with a Million Less. The Secretary of the Treasury has sent to the House of Representatives his estimates of appropriations required for the fiscal year ending June 30, 1896, which aggregate $410,435,079 as against $411,879,041 estimated for the present fiscal year. Following is a recapitulation of the estimates by departments for 1896, with ' comparisons with the appropriations for 1893, cents omitted: Estimates, Approp’ns, Departments. 1896. 1895. Legislative $8,336,742 $10,377,617 Executive 199,540 194.024 State 1.780,538 2,008,218 Treasury 138,187,281 133,735.362 War 54.855,629 55,296.320 Navy 31,999,886 26,726,752 Interior 158,929,873 173.825,971 Postofflce 6,532,820 2,468,982 Agriculture 2,100,330 3.227.252 Labor 187.470 170,011 Justice 6,724,960 7,730,399 Grand t0ta155410,435,079 $415,760,943 The changes of interest in these estimates present as compared with the appropriations for the current fiscal year are as follows: In the Legislative branch: Salaries and expenses are increased about $225,000, public works about $400,000, public printing about $750,000. Treasury department: Salaries and expenses are increased about SIOO,OOO, territorial governments are decreased about $30,000, internal revenue increased $817,000, of which $469,600 is on account of the collection of the income tax provided for by the act of Aug. 18, 1894. The estimates for public works are nearly $4,000,000 in excess of the present appropriations of which about $2,000,000 is for the continuation or completion of public buildings as follows: Allegheny, Pa., to complete, $175,000; Buffalo, continuation, $200,000; Chicago, repairs, $50,000; Clarksville, Tenn., completion, $15,000; Fort Worth, Texas, completion, $40,000; Kansas City, continuation, $100,000; Little Rock, Ark., additions, $58,000; Newark, N. J., completion and additional lands, $200,000; Norfolk, Va., completion, $60,000; Omaha, continuation, $200,000; Portland, Or., continuation, $100,000; Pueblo, Col., continuation, $50,000; St. Paul, Minn., continuation, $150,000; San Francisco, commencement, $150,000; Savannah, Ga., completion, $200,000; Sioux City, lowa, continuation, $50,000; Washington, D. C„ continuation, $500,000; Worcester, Mass., completion, $50,000.