Democratic Sentinel, Volume 19, Number 50, Rensselaer, Jasper County, 20 December 1895 — GROVER’S PLAN GOOD. [ARTICLE+ILLUSTRATION]

GROVER’S PLAN GOOD.

SO SAYS CARLISLE IN HIS ANNUAL REPORT. Secretary of the Treasury Practically Repeats the President’s Message— Urges Retirement of Treasury Notes —Expects a $7,000,000 Surplus. Carlisle on Currency. Secretary Carlisle’s annual report on the state of the finances was sent to Congress Monday. It shows that the revenues of the Government from all sources during the last fiscal year amounted to $390,373,203. The expenditures during the same period aggregated $433,178,426, leaving a deficit for the year of $42,805,223. As compared with the fiscal year 1894, the reeeiptu for 1895 increased $17,570.705, although there was a decrease of $11,329,981 in the ordinary expenditures, which is largely accounted for by a reduction of $11,134,055 on sugar bounties. The revenues for the current fiscal year are estimated upon the basis of existing laws al $431,907,407 and the expenditures at $448,907,407, which will leave a deficit of $17,000,000. For the coming fiscal year ending June 30, 1897, the Secretary estimates the receipts at $464,793,120 and the expenditures at $457,884,193. or an estimated surplus of $6,908,926. The Secretary states briefly the facts concerning the issues of bonds during the year, the particulars of which have already been reported to Congress. The Secretary devotes a large share of his report to a discussion of the condition of the treasury and the currency, in

the course of which he makes an exhaustive argument in favor of the retirement of the greenbacks. “The cash balance in the treasury on the first day of December, 1895,” he says, “was $177,406,386, being $98,072,420 in excess of the actual gold reserve on that day, and $77,406,386 in excess of any sum that it would be necessary to use for replenishing that fund in case the Secretary should at any time be able to exchange currency for gold. There is. therefore, no reason to doubt the ability of the Government to discharge all its current obligations during the present fiscal year and have a large cash balance at its close, without imposing additional taxation in any form upon the people, but I adhere to the opinion, heretofore expressed, that the Secretary of the Treasury ought always to have authority to issue and sell, or use in the payment of expenses, short-time bonds bearing u IoW rate of interest, to supply casual deficiencies in the revenue. Figures on a Surplus. “With complete return to the normal business conditions of the country and a proper legislative and executive supervision over expenditures, the revenue laws now in force will, in my opinion, yield ample means for the support of the public service upon the basis now established; and upon the assumption, which seems to be justified, that the progress now being made toward the restoration of our usual state of prosperity will continue without serious interruption, it is estimated that there will be a surplus of nearly $7,000,000 during the fiscal year 1897. During the fiscal years 1894 and 1895 the ordinary’ expenditures of the Government have been decreased $27,282,656.20, as compared with the fiscal year 1893, and it is believed that with the co-operation of Congress further reduction can be made in the future without impairing the efficiency of the public service.” Continuing he says: “The large withdrawals of gold in December, 1894, and in January and the early part of February, 1895, were due almost entirely to a feeling of apprehension in the public mind, which increased in intensity from day to day until it nearly reached the proportions of a panic, and it was evident to all who were familiar with the situation that, unless effectual steps were promptly taken to check the growing distrust, the Government would be compelled within a few days to suspend gold payments and drop to a depreciated silver and paper standard. More than $43,000,000 of the amount withdrawn during the brief period last mentioned was not demanded for export but was taken out by people who had become alarmed on account of the critical condition of the treasury in its relations to the currency of the country. The purchase of ounces of gold followed.” The beneficial effects of this transaction, the Secretary says, were felt immediately not only in this country, but in every other having commercial relations with us. “Confidence in our securities was at once restored. The safety of the existing situation is, however, constantly menaced, and our further progress toward a complete restoration of confidence and prosperity is seriously impeded, by the defects in our currency laws and the doubt and uncertainty still prevailing in the public mind, and especially abroad, concerning the future monetary policy of the Government,” The Secretary believes that there never has been a time since the close of the war' when the gradual retirement and cancellation of the United States notes would not have been a benefit to the country, nor when the issue of additional notes of the same character would not have been Injurious to the country. It would be difficult, he says, if not impossible, to devise a more expensive or dangerous system than the one now in operation under the laws providing for .the issue, redemption and reissue of legal-tender notes by the Government. Mr. Carlisle declares that he is thoroughly convinced that this system ought not to be continued, but that the United States notes and treasury notes should be retired from circulation at the earliest practicable day and that the Government should be wholly relieved from the responsibility of providing a credit currency for the people. . There is, he thinks, but one safe and effectual way to protect the treasury against these demands—to retire and cancel the notes by authorizing the Secretary of the Treasury to issue from time to time bonds payable in gold, bearing interest at a rate 'not exceeding 3 per cent, per annum and having a long time to run. and to exchange the bonds for United States notes and treasury no\es upon such terms as may be most advantageous to the Government, or to sell them abroad for gold whenever, in his judgment, it is advisable to do so, and to use the gold thus obtained in redeeming the outstanding notes.

SECRETARY CARLISLE.