For the fiscal year ended June 30, 1899, the internal-revenue receipts
were increased about $100,000,000.

The present gratifying strength of the Treasury is shown by the
fact that on December 1, 1899, the available cash balance was
$278,004,837.72, of which $239,744,905.36 was in gold coin and bullion.
The conditions of confidence which prevail throughout the country have
brought gold into more general use and customs receipts are now almost
entirely paid in that coin.

The strong position of the Treasury with respect to cash on hand and the
favorable showing made by the revenues have made it possible for the
Secretary of the Treasury to take action under the provisions of section
3694, Revised Statutes, relating to the sinking fund. Receipts exceeded
expenditures for the first five months of the current fiscal year by
$13,413,389.91, and, as mentioned above, the Secretary of the Treasury
estimates that there will be a surplus of approximately $40,000,000 at
the end of the year. Under such conditions it was deemed advisable and
proper to resume compliance with the provisions of the sinking-fund law,
which for eight years has not been done because of deficiencies in the
revenues. The Treasury Department therefore offered to purchase during
November $25,000,000 of the 5 per cent loan of 1904, or the 4 per cent
funded loan of 1907, at the current market price. The amount offered
and purchased during November was $18,408,600. The premium paid by
the Government on such purchases was $2,263,521 and the net saving
in interest was about $2,885,000. The success of this operation was
sufficient to induce the Government to continue the offer to purchase
bonds to and including the 23d day of December, instant, unless the
remainder of the $25,000,000 called for should be presented in the
meantime for redemption.