ree be
forecast or foretold by him. His estimates must be based upon existing
laws and upon a continuance of existing business conditions, except so
far as these conditions may be affected by causes other than new
legislation.

The estimated receipts for the fiscal year ending June 30, 1894, are
$490,121,365.38, and the estimated appropriations $457,261,335.33,
leaving an estimated surplus of receipts over expenditures of
$32,860,030.05. This does not include any payment to the sinking fund.
In the recommendation of the Secretary that the sinking-fund law be
repealed I concur. The redemption of bonds since the passage of the law
to June 30, 1892, has already exceeded the requirements by the sum of
$990,510,681.49. The retirement of bonds in the future before maturity
should be a matter of convenience, not of compulsion. We should not
collect revenue for that purpose, but only use any casual surplus, To
the balance of $32,860,030.05 of receipts over expenditures for the year
1894 should be added the estimated surplus at the beginning of the year,
$20,992,377.03, and from this aggregate there must be deducted, as
stated by the Secretary, about $44,000,000 of estimated unexpended
appropriations.

The public confidence in the purpose and ability of the Government to
maintain the parity of all of our money issues, whether coin or paper,
must remain unshaken. The demand for gold in Europe and the consequent
calls upon us are in a considerable degree the result of the efforts of
some of the European Governments to increase their gold reserves, and
these efforts should be met by appropriate legislation on our part. The
conditions that have created this drain of the Treasury gold are in an
important degree political, and not commercial. In view of the fact that
a general revision of our revenue laws in the near future seems to be
probable, it would be better that any changes should be a part of that
revision rather than of a temporary nature.

During the last fiscal year the Secretary purchased under the act
of July 14, 1890, 54,355,748 ounces of silver and issued in payment
therefor $51,106,608 in notes. The total purchases since the passage of
the act have been 120,479,981 ounces and the aggregate of notes issued
$116,783,590. The average price paid for silver during the year was 94
cents per ounce, the highest price being $1.02-3/4 July 1, 1891, and the
lowest 83 cents March 21, 1892. In view of the fact that the monetary