Washington sentinel., 1853-12-10

Treasury notes outstanding..... 1881 6l
1885, l57 50
The accompanying table c exhibits the time
of redeeming and purchasing the public debt
and the amount of premium paid for it, from
the lst of July, 1852, to the Sd of December,
1853.
From this table it appears that S3,342, l50
was redeemed and purchased from the lst July,
1852, to the 4th of March, 1853, and $l2,122,-
7I9 10 from the 4th of March, 1853, to the Sd
December, 1853.
Within a few days after the 4th of March,
1853, it was ascertained that the sum Of
$l,750,000 had been advanced by my prede.
cessor to broker in New York, and $493,0O0
to firm in Washington, for the purchase of
the public debt.
These accounts have been closed in part by
the transfer of the stock agreed to be pur-
chased, and in part BY replacing the money in
the public treasury. There has been no loss
from these transactions but it was considered
that such an advance of money to agents for the
purchase of the debt was of doubtful policy,
and might become hazardous, aud lead to
misapplication Of the public funds, and to favor
itism. 1t was determined not to continue that
method Of redeeming and purchasing the pub
lie debt. Public notice was at once given that
the S5,000,000 loan of lS43, bearing five per
cent. interest, and redeemable on the 1st
July, 1853, would be redeemed at the treasury
on that day, or at an earlier period, as set out
in the notice and that interest would cease on
it from and after the lst July, 1853. The no
tice, marked ID, accompanies this report.
The daily payments at the treasury, in dis
charge of the public liabilities and the redemp-
ton of said loan, did not equal the receipts. A
large surplus accumulated in the treasury and
became cause of alarm in commercial and
financial circles. 1t was hoped that the accu-
mutation in the treasury would exercise bene-
fetal restraint upon importations and specula-
lative credit enterprises, and bring the business
of the country into a safe and wholesome con
dition; yet, under the apprehension that a
panic might arise from too stringent operation
of the treasury, it was determined to make ad-
vances to the mint for the purchase of silver
for the new coinage, and to enable the mint TO
pay promptly, and in advance of coinage, for
gold bullion.
The amount of money on deposite in the
mint on the 4th of March was $6,09s, ,220,
and was increased by the lst of July to
$S,5l7 800 05, and was on the 25th of No
vember. 1853, Sll ,45l ,O39 30. This enabled
the mint to give gold, which circulated as
money, for silver that was out Of circulation
because of the premium upon it, and for gold
bullion that could not circulate as money until
coined.
1t is believed that this operation tended to
lessen the effect of the accumulation; but the
accumulation still continuing, it was thought
advisable further to lessen it by the purchase
of another portion of the public debt, at the
current market price, in the cities Of Philadel-
phia and New York, as authorized by law; and
an arrangement was made with a broker, at
each of those places, to make such purchases,
to be paid for on the assignment and delivery
of the stock at the treasury. These purchases
were continued until the lst of July, 1853, and
ceased after that date. The amount still con-
tinuing to accumulate in the treasury, appre-
tensions were entertained that a contraction
of discounts by the city banks of New York
would result from the weekly statements re-
quired from those banks under an act Of the
legislature of that State, and, combining with
the fact of the large amount in the treasury,
might have an injurious influence on financial
and commercial operations. With view,
therefore, to give public assurance that money
would not be permitted to accumulate in the
treasury, if the public debt could be had at the
current market price, a public offer was made
on the 30th July to redeem at the treasury,
between that time and the lst of December,
the sum of $5,000000 of the loans of lS47
and lS4S, at premium of II per cent, and
interest from the lst of july 1853 on the prin-
cipal. And on the 22d August another public
offer was made for $2,000,000 of the loans
payable in 1856 and 1862, the former at a pre-
MUM of 81 per cent, and the latter at pre-
MUM of l6 per cent, with like interest from
the lst of july 1853. These notices, marked
+ and +, accompany this report. 1t was
thought that such public offer for the stocks,
at the then current market price, would be ex-
pedient on the part of the government and Just
and fair 10 the holders, have beneficial effect
upon the money market, and secure larger
amount of the public debt than any other mode
that could be adopted. The result has been
satisfactory.
The balance Of the loan Of the three corpo-
rate citie2 Of the district assumed by Congress
in 1886, being $4,000, a communication was
sent TO the agent OF the ttustees NJ the loan, and
a price agreed and accepted, to the extsat Of
$696,000; and it is expected that the balance
will be obtained, at the same price, in short
time.
An offer was slso made for part Of the
S5,000,000 Texan bonds, bearing per cent.
interest, and purchase of some of than
effected, in the manner stated in the tables.
The fact is established that the public debt
Of each description can be obtained at the
premiums offered and paid, and that the pro.
miums may be reduced as the time fixed by
the terms Of the law for redemption approaches,
The balance in the Treasury on the 30th
September, with the estimated receipts for the
I'd, Sd, and tih quarters of the present fiscal
year, being SO far in excess Of the estimated ex-
penditures for the same time, w,k justify the
further application Of $l5,O00,00o to the pur-
chase Of the debt, and leave sufficient sur
plus In the treasury for any practical purpose
The purchase OF the debt has therefore been
continued, and s7,s57 ,495 81 expended in the
purchase during the I'd quarter Of the year.
1t is considered that the present prosperous
condition Of the Treasury growing out Of the
great prosperity OF all the industrial Dursuits Of