The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-03
MIR. BoutwelPs Last MonthIy statencns Of
tho Pablo Debt.

tho Pablo Debt.
The country has reason to be gratined with
the official exhibit Of the national finances as
given in the November statement of the Trea-
sury Department. A steady diminution Of the
debt continues. Every month shows decrease,
and for the last month that amounts to over
seven millions of dollars. according to
the way In which the Secretary arrays
his figures. We say according to the
way In which he arrays his figures,
because he excludes the Pacific Railroad bonds
or debt as part Of the public debt, which Mr..
McCullooh always included. Still the debt has
been actually diminished, including the bonds
issued to the Pacific Railroad and the interest
accrued thereon. We cannot see why Mr..
Boutwell, does not include these as o part of
the public debt. There Is little doubt that the
government will have to pay the Pacific Rail-
road bonds in the end, and 1t now has to pay
regularly the interest on them, Notwithstanding
the vast earnings Of the road. The amount of
interest paid and that accrued is upwards of
six millions Of dollars, while the drawback on
that for transportation Of mails and other
services Is less than two millions. OF course
the company has paid no money, and, we sup
pose, never will pay any. Though great and
necessary work, it is stupendous job, and
the people will have to pay both principal and
interest," while the managers and stockholders
become wealthy from the proceeds. The
Pacific Railroad bonds should be included in
our national indebtedness.
There is within fraction Of ninety millions
of gold in the Treasury, exclusive of gold GER
tifcates. There is sufficient to buy up and
cancel over q hundred millions of five-twenties,
which if SO applied would save six millions in
gold year in interest to the Treasury. Why,
then, keep this vast sum locked up and unpro-
ductive2 The boarding it does not facilitate
specie payments. Selling it gradually might
bring down the premium on gold considerably.
Although the Secretary continues to sell eight
millions month In the market, the accumula-
ton in the Treasury goes on. II Mr.. Bout
wells vaults were empty to-day he would have
a surplus at the end of the month, for the
revenue receipts in gold come in steadily and
faster than the demand for paying coin interest
on the debt. 1t must continue to be so from
the very nature Of our trade and the increas-
ing demand all the time for foreign importa-
tions as population, wealth and commerce
increase. There is no necessity for boarding
gold in the Treasury. The Secretary only
needs few millions on hand at any time as
check upon the gold spectators. All the
rest-nearly the whole of the ninety millions
now on hands dead capital and loss to
the country Of six millions Of gold year. If
the reserve Of the precious metal in the Trea
sury could have the effect Of facilitating specie
payments, or of being the representative of our
currency, as the reserve In the Bank of England
is, there would be reason In holding 1t for that
purpose; but 1t has no such effect. The con-
sequence is the interest on this vast amount of
dead capital is lost to the country. Will Mr..
Boutwell, consider this, and adapt his financial
policy to the laws of political economy and
common sense2