New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-07-29
STOP SUSPENSE.

There is general anxiety, both in financial
and mercantile circles, to know what Will DC
Secretary Boutwell's disposition of the surplus
in the Treasury after the expiration or the
current MONTH 1t seems to be conceded on all
hands that the income of the Government will
exceed the expenses, under the present Admin
istration by as much as a hundred millions
for the fiscal year ending June 80, 1870. What
shall be done with this surplus. OF which the
greater part is gold We have in the Treas
ury now balance of, say, seventy millions IN
coin, and thirty millions in currency, with but
light drafts in the immediate future. AT the
end of q twelvemOnth, with only an expendi-
ture of interest and current expenses. this large
balance would probably be swelled to nearly
200 millions. Now, in what way can this 200
millions (half Of which is on hand) be put TO
the best use
Congress enacted, in 1862 that one per cent
of the Public Debt shall be purchased and set
aside as a sinking fund but this provision was
neglected for five years, so that instead OF
having bought in nearly 800 millions OF the
debt at large reductions, we have less than
forty millions. The present Secretary Is now
using part of the funds on hand to comply with
the law. Why should he not continue to buy
in at least at tho rate of four millions per
week for the rest of the fiscal year This he can
do at any rate until either diminished imports
or reduced internal taxes cause him to suspend.
As to the constant clamor of interference with
the money market, the Secretary can readily
avoid that by making his future purchases OF
bonds directly with the idle gold in the Treas.
ury, and not with currency. This would have
the additional advantage Of appearing to I'M
skilled minds (what it is in facD purchase Of
the Government obligations at 10 per cent dis
count, instead of 20 per cent premium, as it
now seems to many. The Five-Twentes are
solcmny declared to be payable in gold and
the net gain in making these purchases now,
instead of allowing our money to lie idle,
paying interest Oh the bonds till maturity, and
then redeeming them at par, would be all
the more apparent if they were bought at 90
per cent of their face value.
There is no good reason why the Secretary
should cOnfine his purchases to Five-Twenty
bonds exclusively. To take in any of the out
standing six per cent gold-bearing debt would
he good policy when il can be had at a dis
count Of 10 per cent. The timc Is near mt
hand when the Government will DO able to
sell its five per cent bonds ut par in gold. At
that time the Five-Twenties will DO merely a
call loan, and the holders thereof will he glad
to exchange their obligations for long bonds
bearing one per cent less interest. Mean
while it should be understood by the Sec
rotary that one of the prime causes whereby
the gold gamblers are keeping up the premium
on gold, is the retention of so vast hoard in
the Sub-Treasury. We must. if we would soon
resume specie payments, continue exchanging
the Government gold for bonds, or we must
issue new bond, bearing low rate of interest,
into which all the greenbacks can be converted
at the option of the holders. boarding has
been tried too long,