The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-09-04
The Purchases OF fseven-thirtles stopped


dent has furnished too many specimens.
The Purchases of fseven-thirtIes stopped.
From The NJ Y. Com. and Fin. Chronicle.
Recently, by orders from the Secretary of
the Treasury, the further purchases were
stopped of Seven-thirty notes of the issues
of June and July. The reasons for this
action are two. The work of depicting the
heavy balance of idle money in the Treasury
has been to great extent accomplished; and,
secondly, the books have to be made up for
the monthly statement of the debt which is to
appear early next week. When that report
is out we shall know the precise amount of
the Treasury purchases of notes and that of
the sales of gold and bonds. That these trans
actions have been so conducted as to cause
large disbursements Of currency, we know by
the effect produced on the money market,
which serves as a tolerably reliable index just
now of the outflow of currency from the Trea-
sury. If we are not misinformed, the pur-
chases of Seven-thirties will, if necessary, be
renewed next month, and will go on to any
extent that may be expedient, or until the
balance of idle money in the Golfers of the Gov
ernment is brought down to a more ade-
quate working average. Mr. McCul-
loch's efforts to reduce his balance have
been generally regarded with much
satisfaction, inasmuch as it is obviously bad
policy to keep any more idle money in the
Treasury than is absolutely needed, so long as
the Government has to pay per cent. on all
the funds it raises on long bonds.
The public anxiety on this point has been
illustrated in the active discussions which
have been elected by the publications few
days ago of a semi-oficial statement of the
amount of the balance now in the Treasury, as
compared with that of the first of August.
The aggregates compare as follows:-
4$2;5 ,is: s'ss, P>sS$G7i
Currency 5l,S3ZOCO 72474.276 2l.I42 276
.sl4l97lOOO Sl7587o45O s8O4O845o
cates.."."...~.,."..". 1e,lOsOoo 10 467sso a5l96O
sl25s65OOo sl55,o2l.ioO s3OO564oO
These figures are very suggestive. They
show, in the first place. that in the past three or
four weeks the Government has disbursed 80
millions more than its receipts, although the
latter have been heavy, amounting as is esti-
mated to 25 millions of dollars. On this view
of the case, 55 millions of currency have been
paid out Of the Treasury, q millions of which
were previously locked up and eflectually shut
out OF the ordinary channels of circulating
money available for business.
To form correct estimate of the policy
which directed these movements, we must look
at the figures more in detail And turning
first to the gold balance. we find that it fell
lions on the 9th. OF these 10 millions, 2 mil
lions were probably paid for coin interest,
leaving millions as the amount the Govern
ment has sold in addition to the GUS
toms receipts during the period under
review. What those receipts were we
can only estimate All we know Is that
the customs from July / to August 27 were
$26, 353, 900. Hence the August receipts can
scarcely be less than thirteen millions. If this
coin has been sold, together with the eight
millions before mentioned, the Government
must have disposed of some twenty-one mil
lions in the gold room since theend of July.
This sum is, however, considerably in excess
of the general belief, which sets down the
probable sales at twelve to fifteen millions.
| The remaining six millions are supposed to be
| accounted for by the method of keeping the
accounts of the Department, as gold certificates
| which have been redeemed are allowed to ac-
cumulate in the office here, and are counted as
cash until they reach certain amount, when
| they are charged to the Washington office and
finally destroyed. II we accept this hypothe-
sis, and estimate the sales of gold at fifteen
millions, then at an average price of l40, the
| value in currency will be twenty-One millions,
| which have been received into the Treasury
and again disbursed.
Besides these twenty-one millions of
currency derived from gold sales, Mr..
| McCullOch, as will be seen from the
foregoing table, has lessened his currency
! balance twenty y-one millions. He must there
fore, have paid out forty-two millions. Nor is
| this all. The receipts from internal revenue
| must have been about fourteen millions. AS
| this sum also has been paid out the aggregate
| disbursements of the Treasury as we said
| above, will amount since the lst ult. to fifty
| five millions.
Another point must be settled, however,
| before we can accurately see what results in
the money market will probably follow this
| disbursement of ffty-six millions twenty-one
millions of which was previously inert, but is
now called into activity just at the season
| when the movement of the crops begins to
| call for it.
The question we refer to is as to what has
been done with the money. part of it
some or 10 millions probably-has been paid
out on acquisitions for the War Department,
which have recently been large. If this sum
is paid out Immediately by the disbursing Off
GERS who have received it, it will very soon
return into the circulating current and tend
to stimulate business. About 2l millions are
believed to have been paid out in purchases of
Seven -thirties, and in meeting the maturing
interest on them. The compound notes have
come in more freely, and about 25 millions of
currency are computed to have been expended
in paying them of.
Gathering together all these points, there
are two deductions which plainly suggest
themselves. First, the Government sales OF