People's Pilot, Volume 4, Number 25, Rensselaer, Jasper County, 7 December 1894 — CARLISLE’S VIEW. [ARTICLE]

CARLISLE’S VIEW.

The Secretary of the Treasury Presents His Report. He DUcmmi at Some Length the Bond Issue* and the Proposed Plan for a Change In the System of Currency. Washington, Dec. s.—The annual report of the secretary of the treasury on the state of the finances was sent to congress Tuesday. It shows that the revenues of the government from all sources for the fiscal year ended June 30, 1804, were 1372.802,49 b and the expenditures *442.605,758, which shows a deficit of 109.803.28 a As compared with the fiscal year 1893 the re- i celpts for 1894 fell oft $88,914,033. During the year there was a decrease of $15,852,674 In the ordinary expenditures of the government. The revenues for the current fiscal year are thus estimated upon the basis of existing laws: From customs $160,000,000 From Internal revenue 165,000,000 From miscellaneous sources 15,000.003 From postal service 84,427,748 Total estimated revenues $424,417,748 The expenditures for the same period are estimated as follows: For the civil establishment $91,250,030 For the milltafy establishment 53.250.0)0 For the naval establishment 32,500.000 For the Indian service 11.500,000 For pensous 140.500.000 For interest on the public debt 31.000.030 For postal service 84.427.748 Total estimated expenditures... .$444,427,748 The 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 customs $185,000,000 From internal revenue 190.010.000 From miscellaneous sources 15,000.003 From postal service 86,9(7,407 Total estimated revenues $476,907,407 The secretary thinks many small district offices should he consolidated and a general 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. The most important feature of Mr. Carlisle’s ■ report is his discussion on the subject of cur- j rency reform, in the course of which the ad- , ministration's plans of a new system of cur- I rency are set forth In detail. Mr. Carlisle re- j views the financial statistics referred to in the tabulated statement and charges $3,022,000 of the deficit to tho importation of raw sugar prior to the time the new tariff law went into efTect. 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 incometax law will have been made. He is of the opinion that the execution of the present laws will yield sufficient revenue for 1890, 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 $50,000,600 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 nptes, 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 tho 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 publio mind. In addition tho vnst accumulation of money at our 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. Tho 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 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 publio confidence. \\ ith regard to the redemption of government obligations the secretary shows his attitude 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 a 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. 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 then 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 commodities for the use of the people in their homes and in their various industrial pursuits should be free from taxation. If our industries are to be profitably conducted reduced cost of production must precede or accompany reduced prices of the finished product “The late act, while it places upon the free list a considerable part of most import raw materials used in our manufacture, left iron and lead ores and bituminous coal, together with several articles of less consequence, still dutiable, thus not only failing 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.”