Page:The Presidents of the United States, 1789-1914, v. III.djvu/334

 282 LIVES OF THE PRESIDENTS The close of the year 1894 was marked by finan cial depression, by a larger deficit than had been expected, and by a decline in the revenue. Al though the Sherman act had been repealed, no progress had been made with the scheme presented by Secretary Carlisle for reducing the paper cur rency and providing for an adequate reserve. The reserve was threatened twice, and the president was obliged to make use of the power given under the resumption acts, by issuing $50,000,000 worth of five-per-cent ten-year bonds for the purchase of gold. In his message to the last session of the 53d congress he stated that he should employ his bor rowing power &quot;whenever and as often as it becomes necessary to maintain a sufficient gold reserve and in abundant time to save the credit of our country and make good the financial declarations of our government.&quot; In February, 1895, the gold reserve had fallen to $41,000,000, and Mr. Cleveland asked congress for permission to issue three-per-cent bonds pay able in gold. This being denied him, he issued f our-per-cent thirty-year bonds redeemable in coin, to the amount of $62,000,000. In June, 1895, the supreme court decided by a majority of one that the income tax that had been imposed by the Wil son bill was unconstitutional, and the treasury thus lost a source of revenue that it had been estimated would yield $30,000,000 yearly. In his message of