The advocate and Topeka tribune. [volume], December 21, 1892, Page 2, Image 2

About The advocate and Topeka tribune. [volume] (Topeka, Kan.) 1892-1894

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Mtei States Treasiiry Frante Epei
IN THE SENATE OF THE UNITED STATES.
April 28, I880.-Ordred to be printed. December 17, I880.-Ordered to be reprinted.
Ms. Davis, of West Virginia, from the Select Committee to Investigate the Finance
Keporte, Books and Aocounta of the Treasury Department, eubmitted the fol-
lowing report: (0. 7-CorMnued from last wttlu)
DIFFERENCES BETWEEN RECEIPTS AND EXPENDITUBES.
Major Power testifies (see testimony, pages 80 and 81):
By the Chairman: m
w
O Look at the report of 1871, at page 20, and state what the total receipts of
the government up to June 20, 1871, were.-A. The total receipts received into the
treasary on account of loans were $7,094,541,041.38.
Q. The net expenditures ?-A. $4,857,434,540.51, leaving a balance of $2,237,106,-
frf)f Q7
' o' State what the difference is between that and the actual amount of the pub
lic deht lit mat time.-A. The actual public debt was $2,353,211 332.32.
Q What is the difference between the actual debt and what it would appear to
be on the basis of receipts and expenditures?-. $116,101,831 4o.
O It receipts and expenditures were the true way to keep the public debt,
ouirhT not the difference between receipts and expenditures to have shown the
actual amount of the public debt?-A. It should have shown the actual amount of
the public debt plus the amount of loans or bonds issued for which no receipts
came into the treasurj. amount of the public debt by
$116 000 000, in round numbers. What is the reason why it does not show the true
amountf-A. On account of the loans that were issued and redeemed afterwards,
for which no receipts came into the treasury, and various items of discounts, pre
miums, and interest charged as principal.
O If that be so, receipts and expenditures alone would not show the actual
public debt? A. Not unless you add these items for which no receipts were re
oeived. Mr. Bay ley, of the secretary's office, testifies (see testimony, page 121):
By Mr. Dawes: , .
Q. When did this $116,000,000 first appear in the finance report? A. The first
note is wjLdid thifl $116ooo,oo0 first appear; what is it a discrepancy between?
A. The discrepancy is between the amount received on account of loans and
Q.mepubliahed reports in which year did it first appear to make a dis
crepancy? A. head? A- Under the head of tables K and L.
Q. What are their names? A. "Statement of the Receipts and Expenditures
aSSSltowai of $116,000,000 1 between that statement and what
other statement?-A. And the amount of the publio debt as shown at that time by
the debt statement
Q. This $116,000,000, then, first appeared there?-A, Yes, sir.
Mr. Bayley here says that he found a difference of $116,000,000 between the
.amflnt of tli at t.5m and the amount of the debt stated from re-
PUOUC UBUli, Plreuiu. - 9 , .
ceipta and expenditures, and the discrepancy appeared for the first time in the
finance report of 1871. That is to say, when the receipts and expenditures on ac
count of the public debt were compared in 1870, there were $116,000,000 of the pub
lio debt, according to the secretary's debt statement, unaccomted for by a state
ment made up from the receipts ana expenanuroB:
... - T-a OA 0l .
From the beginning or inegovonuneaSw-uu0,io,. ...tr.oM.Mi.ott 38
The total recotpU were 4,857,434,M0 51
Tae WwU net exyouunuv
12,237.106.600 87
2.353,211,332 32
Balanca
Th ouhllo debt Jane 30, 1871
Difference I ii8,l04,83l 46
If theebt 'aocount "was "kpt by receipts and expenditures, there would be
8116 104 831 45 to be accounted for; and on that basis the publio debt in 1871 was
hi round numbers apparently $116,000,000 too large. It is well known that many
, u ;,,,, l fnr which no cash was covered into the treasury, such as
OODUs uuve vmu . , ..
.. tVio T.miiAiftnft nurchase. Texas tmrohaae, Mexican indemnity,
the iUiaaiBBiuyi r - - ... , .
. Massachusetts debt, Eada jetties, eta This confusion grew out of the change of
system in makiDg up the public dDt statement irum iuu uu.
receipts and expenditures in ioiu.
TQarir np noNDS BY THE LOAN DIVISION
During the examination of Major Power the following questions were asked
and answers given (se testimony, pages aa ana oj;.
By the Chairman: ; ,
.... . iL - I a fVa oor-raf orv'a nfiRrA AA to the
o what cheoK is tnere oa wis iuu uo"uu j -- .
amount of the wnd that has been ordered by the treasure;? In other words ifa
amount, oi wo w . jt-j-jon ff1Taa n order for a $2,000
Z$ &T5M 000 bond fromW upon the public?
a Tf the order t the regiet-r for the bond recites the certificate of deposit as a
S2 000 deUit in place of $1,000, 1 believe there would be nothing to prevent the
3 ww aepoaiu iu v " ' , . , on M .- the record.
bond beinsr lasuea. xur-
Q. All in ne same --. , f .
comes oaws w uu rt v, Mniat.i fnr Ha ivrv? A. That is the
on it and tne Dona men
prftC0Thm there is no check outside of that particular office as to whether or not
yi' - -vru .- rwvi 9 A T haliAVA Tint.
the bond was a i,uw or ,ww Wu.
.
William Fletcher, chief of loan divia on, in answer to how bonds were issued,
said (see testimony, pages 126, 127 and
By the Chatbhan :
tered the office, and 1 do not know that I can tell how bonds vera iwued fifteen
years ago. I waa then a clerx orciaaa one, ana naa notice mausgeinent ueimer
have I been over tne papers so as to De aoio 10 iea nuw uuuua we ibduw wwu. x
can tell how an issue la made now, and how it has been for a number of years.
r C4.n. tv.i a annai't id moda in tliA nffirw nf tha treasurer, for which
W. OMttO tUDIa O. i. UOJMlllI "UK" " , , ,
he issues a certificate, and upon that certificate our office issues an order on the
register or tne treasury, un mat oraer Donas are ibuubu. uoo u wuww uwo
which I can show. i
O. Does the bond come back to your office 7 A. les, sir; ana receives me eeai
and is initialed. . . . A A, ,
Q. Does it then go back to the treasurer's office a. no, sir; no 10 me weaa-
urer's. Jt is delivered in accordance wiin msiruciions enuoraeu ou mo tioosuiw a
certificate. . ... ... ,
O. The treasurer, after snving the order, has notnmg runner to ao wun mo
bond in any way? A. No, sir.
Q. If you did so, the bond would come to your office for putting on the initials?
"A 5f6fl BIT
o nA would not tto to the treasurer to see if he had the money for it in the
treasury? A. It would not go to the treasurer. ... ....
O. if the treasurer issues a certincate icr n i,uw uonu, is mere uu.y whuk
prevent an order for $2,000 of bonds being sent to the register's office from your
office? A. Only our checks.
O. i our integrity I a. ies, sir.
n T Am Tinttincr that out of the aueetion all the time. If such a bond was is
sued, that $2,000 bond would come back to your office. What would you do with
it? A. The initials of the clerk having charge or the loan would oe put upon it, ana
it would be sealed. . ........ .
Q. But the treasurer himself would Jsnow nothing ot it t a. xno, sir.
fiffirA nf Arwruen1 interest on bonds when
they are issued? A. We keep an account of it as furnished by the cert'hcate vt de-
)081r nv. !f i0; it T tuara t.n aoV von tvrlftv to furnish me a list of accrued
interest upon bonds sold since 1864, or any other time, could you do it? A. I could
not. .. .
Q. It is not kept in your office in such a way that you couidr a. jno, sir.
And Treasurer Gilfillan testifies (see testimony, pages 106 and 107):
By the Chairman :
.
r tt., jn t,nn that, o Knnr? ?a inaiiAfl for th Rftmft amount that vou give a
certificate for? A. I have not any knowledge of the transaction after having given
e yP 1; . ft1 rtYitmmd ond riAvsvoj thenrinciDal ai? daccmed interest.
you give him a receipt for that $1,000. That then goes to the loan division of the
t.ViA In An division issues an order to the reur
OtTUl sj UU J O wiivivFiiaiii.. - ; "
iater to issue the bond?-A. Yes, sir. .
Q. The register issues the bond, and does what with it? A. lransmits it
usually to the subscriber, to the depositor.
By Mr. Dawbs :
0. Before he does that, does he not send it to the secretary? A. This present
loan, as I understand, goes back to the loan division ot the secretary a omce. a
part of the process is then completed; l winn puwing on me eeai aim u imiui.
By the Chairman:
n fhAt. ; t.hA flRmn office that trave the order for the bond? A. Yes, sir.
Whether they send the bonds or not I am not certain.
t.n intfltrritv of the officer to Drevent the loan
division, if it receives a certificate from you of $1,000, directing the register to4 issue
a bond or z,uuur a. i ao not snow mau tuw " " m"
Q Is there any oheck upon the loan division from making an order upon the
register to issue to A a bond of any given amount? A. Not that I am aware of.
Q. How long has the present system oi ihhuijjk wuuo wu m jouiiv-d.-
think ever since there has been a loan division. I know it was so :n Mr. Boutwell s
time. .
"
Tniia it. will hA Hfln the chief of the warrant division, the chief of the loan divi
sion, and the treasurer of the United States all say that there is no check upon the
loan division in issuing bonds, and that upon the integrity or one man in tne loan
division may depend whether or not the bonded debt of the government is as re
ported. If there was a return of bonds to the treasurer to see if the amount agreed
with the money received, this would be a checK on tne loan aivision. ab it now is
tiiot. n-im'omn nan increase the treasurer's order or originate an order on the regis
ter for the issue of bonds, and there is no check. Many hundred millions of dol
lars in bonds have been issued with no other check than the integrity or an officer
in the loan division of the secretary s office.
bonds
r Tuoa ATTilain where when you went into the office, and where at present,
St werTand TislS-A. I did not know much about it at the time I en-
Fourth District Alliance.
The regular quarterly meeting ot the
Fourth Congressional District Alliance
will meet at Osage City on Thursday,
December 20. at 10 o'clock a. m. A
splendid program is prepared, and all of
the officers of the State Alliance are ex
pected to be present; also other notable
members of the order. There will be an
open meeting in the evening, and the
Osage County Alliance will hold its regu
lar meeting on the following day at the
same place. It is hoped that every county
in the district will be represented, so that
a mmeral revival of the order all over the
district may be inaugurated. All mem
bers of the order in good standing are
cordially invited to be present.
J. W. Latbourn, Committeeman.
Reform papers in the Fourth District
pie ase copy.
There has never been a time in our
history when work waa so abundant
or when wages were so high, whether
measured by the currency in which they
are paid or by their power to supply the
necessaries and comforts of life Presi
dent's Message.
A financial system under which more
than one half of the enormous wealth of
the country, derived from the bounty of
nature and the labor of all, is owned by
a little more than 30,000 people, while
1,000,000 American citizens, able and
willing to toil, are homeless tramps,
starving for bread, requires adjustment.
A toeial tyttem which offers to tender, virtU'
ens and dependent women the alternative
between prostitution and suicide as an es
cape frtmieggary 'a organized crimt, for
which some day unrelenting justice will
demand atonement and expiation. John
J. Ingallflj
Alliance Notice.
Leavenworth County F. A. & I. U holds
its next regular quarterly meeting at
Fairmount on the second Saturday in
January, 1803. Subject for debate: "Gov
ernment Ownership of Railroads.'' Hon.
W. A. Harris will be present to take
part. Every Alliance memoer in the
county should be present.
O. W. Bissztt, County Secretary.
Jarbalo, Kas., December 12, 1802.