Show CARLISLES ANNUAL REPORT condition of government finances ft suggestions made for a solution of the present suicidal Sul eldal policy in the treasury department washington Wae hington dec IS 16 secretory secretary carlisle lisles a annual report of 0 the elate state of 0 if nances bances sent to congress today it sho a that the revenues ot of tho tile government from all sources during the last fiscal year amounted to the expenditures during the ame same period aggregated leavitis leav leaving itil a deficit for the year of 0 A e compared coin pared with the fiscal year 1894 the receipts tor for 1895 increased although there was a decrease of in the ordinary expenditures tures which ie is largely accounted gr for by y a reduction of on sugar bounties bount iee the revenue revenues for or the current fiscal year are estimated upon the lite basis of existing lawe laws at and the expenditures at which will leave a deficit of for the coming fiscal year ending june 1807 the secretary estimates cell mates the receipts at and the tile expenditures at or an in estimated surplus of the secretary states briefly the facts concerning the issues of bonds during the lite year the particulars of which have already been reported to congress Oon gres the report shows that the behring sea patrol fleet during the last seavon boarded and examined ninetyfour ninety four vessels fifty four of which were engaged in sealing ealing the number of skins actually counted was wag many of 0 the vessels in the revenue cutter service the decre secretary pays are very old and nearly and he be recommends that four new ones be provided to tae take the place of the the ora ford and the seward ard ai at d one for the tile port of new york the secretary says that the government of great britain hae his reused to renew the sealing regulations agreed upon for the season of 1894 providing for the sealing up of arms which leaves the question of the possession and use uee of arms to be determined wholly holly by the paris parts awards the total catch of 0 seals at sea in the award area during last season was as compared with tor for the season of 1894 1804 the catch on tho seal islands was A careful count of all of the eeals on the iti lands last year makes the number a ittle little over a decrease ot of over one halt half since the secretary devotee devotes a large share ot of bis his report to a discussion ot of the condition of the treasury and the currency in the course of which be he makes an exhaustive hau bau stive argument in favor of the retirement of the greenbacks green backs the cash balance in the treasury on the first day of december 1895 he says was being in excess of the actual gold reserve en on that day and in excess of 0 any sum that it would be necessary to use for or replenishing that fund in case the should at any time be able to exchange currer cy py for gold there Is ie therefore no reason to doubt that tp ability of the government to dischar discharge je all a of ita its current obligations during the present fiscal year and have a lurge large cash balance at its cloe without imposing additional taxation in any form afon ifton the people mple out I 1 adhere to the a heretofore ex pressed that the secretary of the treasury trea tury ought always to 9 have authority to issue and sell or use in the payment of 0 expenses short time bonds bearing a low rate ot of I 1 interest t prest to supply casual deficiencies in tie the revenue with a comp complete e to return to atio normal bu buo siresa iress condition of the country and a proper legislative and executive supervision over expenditures the revenue laws now in forve tori will in my roy opinion yield ample means for the support of the public service upon the has basis is now dow established and upon the ae assumption which seems to be justified LOW aba at the progress pro a gregs now being made toward the restoration st of our usual tate aito of prosperity will continue without 1 serious it is estimated that there wll will be a surplus of nearly durin during juring ascal the fiscal year 1897 during the fiscal years 1894 and 1851 ordinary expenditures of the government have been de cre creaked aried 0 as compared with the fiscal year 1893 and it 4 ie is believed that with the cooperation ot congress further reductions reductio ns can be made in the future without impEl impairing iring the efficiency of the public service ter vice continuing he lie says the large with dragla of 0 cold old in december 1894 and january ang and the early part ot of february february it 1895 1893 were due almost entirely to a abeel fee I 1 ing ng 0 of f apprehension in the pub public ic mind which plen increased in intensity from day to day until it nes nearly aly reached the pro proper por eions tione of a panic and it was evident eviden t to all 11 who were familiar with the situation that unless effectual stress wa was promptly a taken to check cheak the crowing rowing distrust the government would be compelled within a few daye days to suspend gold payments and drop to a depreciated silver and paper standard more than 43 juring of the amount withdrawn during the tile bilet brief period last mentioned wa wait not demanded for ex export ort but was taken out by people who tad bad become alarmed on account of 0 the critical condition of 0 th the to treasury in ite its relations to the burrene cu currency rrene y of the country the purchase of ounces of grad follo followed aed it being in the he contract that not less than one half of the gold was to be procured abroad but alter a large part of D 1 the gold bad had been furnished farl rom OM abroad road the secretary in order to prevent disturbance dit in in the ra aratea tes of ll 11 I 1 foreign reign exchange at a critical bourd period and end avoid a condition which would force gold exported and sequent withdrawals from the treasury in a departure from the tile literal term terms of the contract that one halt half of the coin should be procured abroad and accepted deposit deposits of cold gold then keib held in this country to complete tho the delivery ordinary prudence demanded that the success of the plan to protect the treasury against withdrawals should not be endangered by insisting inri eting upon a 91 strict compliance with all ail the detail details fl the contract e especially a ally ae as th the e government could sustain ta raj n no lot lose and tile ali whole amount ot of gold stipulated for was SeC secured UreAl the amount of bond bonds jeeney under this con tract was ta 1 and the tho amount of gold received wa was 05 the bene beneficial Acial effect effects of this abi transaction I 1 the secretary says were tell felt immedi abely not only in thie this country but in every other nation commercial relations with us confidence in our securities tice he be c continue onti wasat was at once restored and the encouraging indications of increasing prosperity still continue and it ie Is reasonably certain that I 1 if burp our progress r e am ie is not chocked checked by a repetition oaf of F targe ar ge demands upon our i resources or by a failure to meet the juet just expectations of the people in respect rei eci to the reformation of our fiscal system we are entering upon an era of material growth and development not surpassed in our history the safety of the existing situation is however constantly menaced and our further progress toward the tie complete of confidence and prosperity rity ie is seriously impeded by the meats defect in our cur currency recy laws and the doubt and uncertainty etui still prevailing in the public mind and especially abroad concerti con concerning cerni ng the future monetary policy of the government ern ment until these defects in our Is laws we are d and these doubts are removed there can bono be no satisfactory assurance of immunity from periodical disturbances growing the obligations which the government has been compelled to assume in relation to the currency our past experience with the united states notes and the treasury notes has clearly cho sho n that the policy of attempting to retain theae these obligations ot of the government permanently as a part ot of our circulating medium and to redeem them in coin ou on presentation and reissue them after redemption must be abandoned or that such means must be at once provided as have a tendency to facilitate the efforts of the secretary to RC accumulate CUMUlAte and maintain a coin re berve serve sufficient in amount to keep the public constantly of the stability cf our en entire tire volume of currency and of our ability at all times to preserve reserve equality equall ty in the exchangeable vaid value e of its various parts the latter alternative wb which ah in my opinion if adopted would onia not afford the relict relief demanded by the exist existing ap situation tion necessarily involves such large increases of the interess beur bear I 1 ing public alic debt from time to time and aud would impose permanently upon the government such erroneous and inappropriate duties in relation to the pape calef currency of the country that it ought notto not to be favorably entertained except as a last resort in the struggle tor for the maintenance of public faith and the reservation of the inviolability of private con trad traci a the issue of bonds he save wl to procure coin for the reserve re selve which llie is to the only eff effectual method now available le under the law will dunles conditions which have already been dev developed e I 1 opa I 1 b by y the present policy are radically changed banged ultimately result in the creef creation lon of a public debt much lar larger ger than then would be required to retire and cancel the notes and the annual interest inte iest charge would be much greater than it would woul d be necessary to incur on a BOW new issue of bon booda 11 adapted to the present circumstances 01 the government and the well known preference of investors if ho ever an attempt is to be made to keep the united states notes and treasury notes permanently manent ly in circulation by te reissues issues after alter redemption and the government is to be a charged with the 3 duty of sustaining t the e value of all our currency cy I 1 paper and coin alike the conclusion conclusion cannot be avol avoided died that the policy of issuing spin bonds for the accomplishment of these thea purposes must also become permanent and additional powers must be conferred upon the secretary as will enable him to execute the laws relating I 1 to these subjects with the least possible ij disturbance of the business rf alaire a re ot I 1 the people and least possible charge upon the treasury 1 df I am thoroughly convinced that this policy 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 the government govern meet should be wholly relieved from the ot providing I credit currency for forthe tle people it would be difficult if not im possible pos fible to debise g a more g pensive or dangerous system than the one now in operation under the lane pr providing hviding forthe tor the iesue redemption and r sue pt pf legal tender notee no el by the tile government there hai has never been a t time line since inte the close of the war the secretary when the gradual rep retirement rement ana and cancellation of the united states notes would not have been a benedit to the lite coan country try nor has there ever cpr been a time hen lien the issue of additional notes of the pame character would not have neen injurious kricun to the country if it our legal 11 ader tender notes were mere retired there is abundant reason to believe that every large largo amount of gold n aich has bep b ep ex eluded from the country by alie excessive silver and paper in our circulation would promptly return to take its place jn in pur our currency and constitute a permanent part of ou our r medium of or exchange A country having such extensive trade relations with other nations us as we now enjoy cannot be deprived of its proper share of the world worlds stock of move r and if it adopts and adheres to a sound and stable currency system at home it will get the best money the world has because n other othor kind ie is ever used in international transaction aa As long as the government leave leaves our people la reasonably free to trade abroad and 9 does me n not ot mage make any kind of paler legal tender in the payment of the debts it cannot or injuriously contract the currency by the withdrawal of its own notes the retirement and slid can collation of the lwi tender notes would not necessarily produce any contraction of the circulation and if such a result bould follow and continue for any con dd Id erable period it would be a demonstration of the fact that the volume of currency previously existing was not needed in the business of people for or whenever mb enever tile volume Is reduced below the actual LI requirements of trade the deficiency will be supplied either from abroad d tn in berchan exchange 0 IN tor 0 r o 0 and securities or by the banks at home or both the united style notes and treasury notes issued in ili payment tor for silver bullion together amounting at the beginning to have been used and are still being used to withdraw gold from the government whenever our own pe people pla or the government 11 or peoples of other countries see proper to demand it for or any seand under the laws now existing the secretary of the treasury lias ties no means of comp complying iving with the these demands except capt by the thi issue and talc sale of interest inu rest bearing bonde bonds under the act of january 1876 or by the purchase of go gold I 1 d coin with bond bonds or notee notes of the united state states under section of the revised N I 1 against these demands the treasury has no available means of detente defense except at the sacrifice of th the P public credit and the immediate depreciation of the entire volume ot 0 our curre currency long adherence currency ncr to a falee system has 1 lea to a great extent undermined our national credit to io far as it ie is related to the maintenance ol 01 a sound currency and anti it must bo be reconstructed ted rot merely lf propped UD by frail and temporary supports to io surplus revenue however large could extricate us from our present difficulties or give assurance of 0 safety in the tile fuluso unless it should be required to be paid in gold under a system which would exempt the ithe government from front the obligations to furnish the gold ft A hen lien demanded to be used in ili making the payment payments and it is ev arcely to buggert that such a aeye system temie is impossible as long as the united state states notes lind find treasury notes are kept in circulation and anti are redeemable 1 in n go gold id by the government itself on presentation the opinion seems to prevail to some extent that the mere possession of a surplus in the trea treasury tury would pre prevent ventu withdrawals of gold stoll and thus render the issue of bonds tor for the protection of the reserve unnecessary but this view of the subject is founded in my judgment upon six a entire dikou of ilie cauree pro lewd the withdrawal withdrawals unless I 1 am RD wholly mistaken they have very little if it an any relation to the amount of money lierd held by me the govern government merit or to the amount of money mone the government has ability to raise ra to by y taxation or otherwise but they relate primarily and almost exclusively to the character of 0 money that it might be able to supply and lre keep p in ciraula lation hi ili other words iduas it was apprehension aa as to the kind of money to be used and not as to the kill kind agney 01 of money on qa liand hand that brought our securities e back from abroad for fale sale caused foreign investors sto to |