Rensselaer Republican, Volume 28, Number 17, Rensselaer, Jasper County, 26 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'a MeasageUrgee Retirement of Treasury Notes —Expects a $7,060,000 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 th e same peri od aggregatcd $433,178,’426, leaving a deficit for. the year of t 542,805,223. As compared with the fiscalyear 1894, the receipts tor-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 at $431,907,407 and the-, expenditures at $448,907,407, which will TeavtTa deficit <sf $17,000,04)0. For the coming fiscal year ending June 80, 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. o 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 whigji he makes an exhaustive argument iii, favor of the retirement of> the greenbacks. “The cash balance in the treasury on the first day of December, 1895,” lie nays, “was $177,406,386, being $98,072,420 in excess of the actual gold reserve onthat day, and $7.7,406,386 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 excliange 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 qasli 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 a low rate of interest, to supply casual deficiencies in the revenue. Figures on a Surplus.

With'complete return ter the norma] 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 teems 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 1597, During the fiscal years 1894 and 1895 the ordinary expenditures of the Government jiirve been decreased $27,-. £82,656.20," as compared* with the fiscal yea fl 893, 6 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 theearly 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 paylnents 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 3,300,000 ounces of gold followed.” The beneficial effects of this transaction, the .Secretary jays, were felt immediately not only in this country, in every other having. .tomniorcinl 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 (s seriously impeued, by iri 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 wfipn the gradual retirement and cancellation of the United States notes would hot 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 fie continued, but that the United States notes and treasury notes should be retired from circnlatibn at the earliest practicable day and that the

Government should be wholly relieved from the responsibility of providing* credit currency for tlie people. The notion that the mere possession of a surplus in the treasury would withdrawals of gold, and thus render thelssuo of bonds tor the protection of the reserve unnecessary, is founded, in his judgment, upon an entire misconception of the causes that have produced the withdrawals. There is, he thinks, but one safe and effectual way to, protect tho treasury against these demands—io retire and cancel the notes by authorizing the Secretary 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 ex< • Inn igw the bonds for United States notes treasury—notes—upon such terms as itflay he most advantageous to thoTtovernment, or to sell themabroad for gold TTheneverr iii ills judgment, if is advisable to do so, And to use the gold thus obtained in redeeming thetoutstanding notes.

SECRETABY CARLISLE.