Show THE STTE OF THE COUNTR CA lL Secretary Carlisle Makes a Very Plain Statement INSTANT RELIF t IS IMPERATIVE The Treasury Must Be Replenished to Meet Obligations I Prompt Action in the Matter Is Not Taken by Congress It Will be Absolutely Ab-solutely His Duty to Proceed ana Issue Bonds as Provided Under the Law Now on the Statute Books Other Capital News Washington Jan 15The following leter was sent by Secretary Carlisle to Senator Voorhees chairman of the finance committee of the Senate Treasury department Office of the Secretary Washington Jan 13 1894 Hon D W Voorhees chairman committee com-mittee 2 finance United States Senate Sen-ate Dear Sir In compliance with your verbal request re-quest I have the honor to submit forte for-te consideration of the finance committee com-mittee of the Senate statements showing show-ing the actual condiion of the treasury treas-ury on the 12th day of the present month and an estimate of the receipts I and expenditures during the remain I der of this month and the month of February I will be seen from the statement there is an urgent necessity neces-sity for such immediate action as will replenish re-plenish the coin reserve and enable this department t continue the payment of public expenses and discharge the obligations of the government to pensioners pen-sioners and other lawful creditors When my annual report was prepare pre-pare i was estimated the expenses during the current fiscal year would exceed the receipts to the amount of about 28000000 and I asked Congress for authority t issue and sell bonds or other forms of obligations to an amount not exceeding 50000000 bearing bear-ing 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 oc-cur in the revenues The estimate then made was based upon the assumption as-sumption that the worst of our financial finan-cial disturbances had already been realized and that there would be a substantial increase in the revenues for the remainder of the year While it was not believed the deficiency then existing would be supplied by increased in-creased revenues in the future i was hoped no additional deficiency would occur but the receipts and expenditures expendi-tures up to the 12th of the present month show that the estimate of the deficiency de-ficiency of 28000000 at the close of the year was much too low The actual receipts and expenditures during each month of the year and the monthly deficiencies have been as follows I I I I Exc of 1S93 I Receipts Expendtr 5lExpendts July J 1 30905773191 96758SS 60 877012241 Aug f 1 397S19l 353622848 941434318 Sept 1 24582755101 2547811017 4289525407 Actual for three months 1 80870227901 98430C945917 C07072Te9 Oct 245533M97I 2958889234 503549737 Nov 1 2359740081 3130202041 732262560 Dec 22310270 3050820051 774623351 1894 1 I Ja t103639313I 1 16263655141 589871577 Total 1620803S4052064342S79914355804494 Twelve days If the same average monthly deficiencies ciencies should continue the total differences dif-ferences between the receipts and expenditures ex-penditures on the 30th of June next will be 78167542 According to the best estimate that can be made fhe total to-tal receipts during the present month and he month of February will be 41 900000 and the total expenditures will be 60300000 showing a deficiency during dur-ing the two months of 18400000 but this does not include any payments on account of sugar bounty claims for I which the amount of nearly 5000000 I ha already been presented and is now II I under investigation in the department I The assets of tne treasury and the I current liabilities in excess of certificates I I certifi-cates and treasury notes outstanding I were as follows on the 12th day of the I present month Gold 74108149 sil I ver dollars and bullion 8092287 fractional I frac-tional silver coin 12133903 United I States notes 5031272 treasury notes of 1890 2476000 national bank notes 14026735 minor coins 938825 deposits de-posits in the banks 15470863 total cash assets 132327889 Liabilities Bank notes 5 per cent fund 7198219 outstanding rthecks and drafts 5163 917 disbursing officers balances 28 176149 postoffice department account 3897741 undistributed assets of fail ed national banks 1927727 District of Columbia account 144230 total account 46996366 gold reserve 74 017549 net balance 11223374 To tal liabilities 132377889 It will appear from this statement that the coin reserve has been reduced to 74108149 and it is evident from the condition of the treasury the department depart-ment will have no means to defray the ordinary expenses of the government unless a large part of the payments are hereafter made out of that fund If this is done the coin reserve will be reduced re-duced by the 1st of February to about 66601864 a sum wholly inadequate for the purpose for which it was created On account of this critical condition of the treasury I have considered it my duty in addition to the earnest recommendations contained in my annual an-nual reportto appear twice before your committee and after a full explanation explana-tion of the situation I urge prompt legislative action on this subject and with the permission of the committee I have prepared and issued for consideration con-sideration a bill which if promptly passed would in my opinion meet all the requirements of the situation by providing the necessary means for defraying de-fraying the public expenses and replenishing re-plenishing the coin reserve to such an extent a to assure the maintenance of the parity of all forms of the United States currency While this proposed measure of relief has not yet been disposed dis-posed of or considered by the committee com-mittee 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 i doubtful whether the new legislation legisla-tion upon the subject can be secured in time to provide the means which are imperatively demanded in order to imperatvely preserve the credit and honor of the serve government gov-ernment authority to issue and sell bonds for the purpose of maintaining specie payments was expressly conferred con-ferred upon the secretarytreasury by the act of Jan 1 1S75 but has not been exercised since 1879 and on account ac-count of the high rate of interest provided I pro-vided for and the length of time such j I L t M U bonds would have to run I have not been satisfied that such an emergency has heretofore existed as would clearly clear-ly justify their issue But necessity for f relief at this time is so urgent and the prospect of a material improvement in the financial condition of the government so problematical proble-matical that unless authority to issue and sell shorter bonds or other obligations gations bearing a lower rate of interest in-terest than that specified in the existing exist-ing law is granted by Congress at avery a-very early day I shall feel constrained by my sense of public duty to exercise exer-cise the power already conferred to the extent at least of providing an adequate coin reserve I this action should be taken Congress ought nevertheless to provide promptly for the deficiency In the revenues during the current fiscal year and I will from time to time advise your committee com-mittee 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 House of Representatives by a rule adopted some time ago has dedicated dedi-cated all its time until the 59th of the present month to the consideration of the Wilson tariff bill and therefore i would have been Impossible for the secretary of the treasury to procure any legislation in that body before that time and for this reason Carlisle thought it necessary to make application applica-tion first to the committee on finance of the Senate which he hopes will act upon the measure in time to provide the necessary means for the government govern-ment The bill referred to in the foregoing letter is asfollows An act to amend section 3 of an act to provide for the resumption of specie payments approved ap-proved January 1 1875 Be it enacted by the Senate and House of Representatives Representa-tives that section 3 of an act to provide pro-vide for the resumption of specie payments pay-ments approved January 1 1875 be and the same is hereby so amended that in lieu of the description of the bonds therein authorized the secretary of the treasury ishereby authorized to Issue from time to time a he may deem necessary and In such form as he may prescribe coupon or registered bonds of the United States in denominations of 25 and the multiples thereof redeemable re-deemable in coin at the pleasure of the United States after years frQm date bearing interest at a rate not exceeding 3 per cent per annum payable pay-able quarterly in coin and sell the same at not less than par in coin and the proceeds of such bonds shall beheld be-held and used to maintain the parity of all forms of money coined or issued by the United States but the secretary secre-tary of the treasury is hereby author ized to use from time to time such part of such proceeds be proceedf as may necessary nec-essary to supply the deficiencies in 1894 public revenues during the fiscal year 1894Sec Sec 2 A sum sufficient to carry the provisions of this act Into effect is hereby appropriated out ofany money in the treasury not otherwise treaury appropriated appro-priated |