e 1st of July, 1893, when the
Wilson bill was in embryo, the revenues had been so diminished as
to yield a surplus of only $2,341,074 during the previous year.
It was apparent, when Congress met in August, that the administration,
having a majority in each House of Congress, was determined to
reduce duties, and yet it made no effort to reduce expenditures.
Soon after there was a large deficiency in the revenue, and the
Secretary of the Treasury was compelled either to refuse to pay
appropriations made by law in excess of receipts or to borrow money
to meet the deficiencies.

In my judgment the better way for him would have been not to pay
appropriations not needed to meet specific contracts, for an
appropriation of money by Congress is not mandatory, but is
permissive, an authority but not a command to pay, nor does an
appropriation in itself authorize the borrowing of money. When
this authority is required Congress must grant it, and, upon its
failure to do so, all the Secretary of the Treasury should do is
to pay such appropriations as the revenues collected by the government
will justify. It is for Congress to provide such sums, by taxation
or loans, as are necessary to meet all appropriations made in excess
of revenue. If it refuses or neglects to do this, the responsibility
is on it, not on the secretary. All he can do is choose what
appropriations he will pay. This is a dangerous and delicate power,
but it has frequently been employed and has never been abused.
His failure to exercise this discretion was a grave mistake.

As revenues diminished deficiencies increased. A doubt arose
whether, under the then existing conditions, the government would
be able to pay gold coin for United States notes and treasury notes.
These were supported by a reserve of $100,000,000 in gold coin and
bullion, but this reserve fund was not segregated from the general
balance in the treasury, as it ought to have been, but was liable
to be drawn upon for all appropriations made by Congress. There
was not then, and there is not now, any specific authority invested
in the Secretary of the Treasury to sell bonds or to borrow money
to meet current deficiencies, and he felt called upon to pay these
out of the general fund, embracing that created for the redemption
of United States notes under the act of 1875. The result was to
create an alarm that the government could not or would not pay such
notes and thus maintain the gold stand