People's Pilot, Volume 3, Number 31, Rensselaer, Jasper County, 19 January 1894 — PROMPT ACTION NEEDED. [ARTICLE]

PROMPT ACTION NEEDED.

Band* Most B» Issued to Moot the Treasury's Critical Condition. Washisgtoh, Jan. 17.—Secretary Car*' lisle has addressed a letter to Senator Voorhees, the chairman of the finance committee of the senate, pointing ont the reduced state of the treasury and especially of the gold reserve, and urging a prompt change of the existing law regarding the issue of bonds to meet the emergency. He takes this action with the sanction of the president His letter is as follows: “In compliance with your verbal request I have the honor to submit for the consideration of the ilnanclal committee of the senate state, ments showing the actual condition of the treasury on the 12th day of the present month and an estimate of the receipts and expenditures during the remainder of this month and the month of February. It will be seen from the statement that there is an urgent necessity for such immediate action as will replenish the coin reserve and enable this' department to continue the payment of public expenses and discharge the obligations of the government to pensioners and other lawful creditors.

“When my annual report was prepared it was estimated that the expenses during the current fiscal year would exceed the receipts to the amount of about 828,000,000, and I asked congress for authority to issue and sell bonds or other forms of obligations to an amount not exceeding 250,000,000, bearing a low rate of interest and having a reasonably short time to run, to enable the secretary of the treasury to supply such deficiencies as might occur in the revenues “Theestimate then made was based upon the assumption that the worst effects of our financial disturbances had already been realized, and there would be a substantial increase in the revenues for the remainder of the year. While jt was not believed that the deficiency then existing would be supplied by increased revenues in the future, it was hoped that no additional deficiency would occur, but the receipts and expenditures during the month of December and up to the 12th day of the present month show that the estimate of a deficiency o' 128,000,000 at the close of the year was much too low. The actual receipts and expenditures from July 1 to January 1 have been: Receipts. (162,080,384.05: expenditures, 1205,6t3,428.99, showing a deficit of *43,558,044.94. “If the same average monthly deficiencies should continue the total difference between the receipts and expenditures on Juhe 30 next will be *78,167,542. According to the best estimate that can be made, the total receipts during the present month and the month of February will be *41,900,000 and the total expenditures will te (60,300,000, showing a deficit during the two months of (18,400,000; but this does not include any payments on account of the sugar bounty, claims for which to the amount of nearly 15,000,000 have already been presented and are now under investigation in thTdepartment. • “With the permission of the committee I have prepared and presented for Its consideration a bill which, if promptly passed, would, in my opinion, meet all the requirements of the situation by providing the necessary means for defraying the public expenses and replenishing the coin reserve to such an extent as to assure the maintenance of the parity of all forms of United States currency. “While this proposed measure of relief has not yet been disposed of or considered by the committee the great differences of opinion which are known to exist in both branches of congress concerning the propriety of granting additional or amended authority to issue bonds in any form or for any purpose render it doubtful whether new legislation upon the subject can be secured in time to provide the means which are imperatively demanded in order to preserve the credit and honor of the government. “Authority to issue and sell bonds for the purpose of maintaining specie payments was expressly conferred upon the secretary of the treasury by the act of January 14, 1875, but it has not been exercised since 1879, and on account of the high rate of interest provided for and the length of time such bonds would have to run I have not been satisfied that such an emergency has heretofore existed as would clearly justify their issue. "But the necessity for relief at this time is so urgent and the prospect of material improvement in the financial condition of the government is so problematical that unless authority to issue and sell shorter bonds or other obligations bearing a lower rate of interest than that specified in the existing law is granted by congress at a very early day I shall feel constrained by a sense of public duty to exercise the power already conferred to the extent, at least, of providing an adequate coin reserve. If this action should be taken congress ought, nevertheless, to provide promptly for the deficie&j'y in the revenues during the current fiscal year, and I will from time to time advise your committee of the condition of the treasury in order that this subject may receive due consideration. I have the honor to be, yours, very respectfully. “J. G. Carlisle, Secretary.” The bill, which is referred to in the foregoing letter, is entitled: “An act to amend section 3 ot 'An act to provide for resumption of specie payments,’ approvod January 14, 1815,” It provides for the amendment of sections so that in lieu of the descriptions of bonds therein authorized, the secretary of the treasury is authorized to issue from time to tithe as he may deem necessary, and in such form as he may prescribe, coupon or registered bohds of the United States in denominations of (-J5 and multiples thereof, redeemable in coin at the pleasure of the United States after two years from date, bearing interest at a rate not exceeding 3 per cent, per annum, payable quarterly in coin, and to sell the same at not less than par in coin, the proceeds of such bonds to be herd and used to maintain the parity of all forms of money coined or issued by the United States, but the secretary of the treasury is authorized to use from time to time such part of such proceeds as may be necessary to supply df ficiencies in the public revenues during the fiscal year 1894.