New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-12-22
TWO WAYS TO SOIVENGY.

IN this day OF widespread NenlIlty anu vi
sweeping charges of corruption, it might be
deemed remarkable that no whisper OF re-
prolch or suspicion has sought to tarnish the
good name of the Secretary of the Treasury.
Many are from time to time impelled to dis
sent from one OF another of his suggestions,
but no man has limited doubt of his perfect
integrity. If there be opportunities afforded
by his high position to enrich its holder the
whole country knows that he has never sought
to profit by them. With Millions subject to
his will, he will leave the Office poorer than
he entered it. And bis unsparing hostility to
every form and shade Os Reputation, his
unhesitating championship of early Re-
SUMPTION and his manful resistance to
the demagOgue race for presidency in
diminishing the Revenue and thus arresting
the payment of the National Debt, have
justly given him strong hold on the conf
dence and support of the better portion of
the American People.
When, therefore, we are constrained to dis
sent from any feature of Mr.. BOutwelps
policy, we do it with profound reluctance.
| But the close OF year affords an excellent
opportunity for a new departure and we re-
turn TO the subject Of the Treasury surplus
with an earnest hope that the Secretary may
be induced TO review and revise his action on
this head.
Mr.. Boutwell, has now been for nearly
! twenty-One months the manager of the Ma
! ti0nal Finances and he has meantime reduced
| the National Debt by little less than Two
! Hundred Millions of Dollars. This is, so far,
| excellent. But suppose he had paid still faster,
| especially in the outset, when each Million Of
| coin in the Treasury would have bought con-
sidcrably more bonds than it now will-had
converted all his surplus above Ten Millions
into bonds within the first quarter of his adj
minstratiOn, and had thcnceforth kept the
Treasury as nearly empty as was consistent
with the prompt adjustment of every liza
bility, the Debt must have been re-
duced ere this, at least One Hundred Mil
lions more than it has been, and the same less
the surplus in the Treasury from Ten to
Twenty Millions. The interest which has since
accrued on the Hundred Millions that he might
have paid off at the outset must be nearly or
quite Ten Millions The saving in the price of
the bonds purchased could have been little
less And what loss would have balanced this
large gainf
Mr.. Boutwell, doubtless believes that the coin
inthe Treasury facilitates and serves to hasten a
safe Resumption. We regard it, on. the con
traTy, as the chief obstacle to an early Re-
sumption. Let us try to make this plain:
Suppose there are in Cleveland or Toledo
two Banks-we will call them the.First and the
Second Northumberland each has capital
of One Million, with Circulation and Deposits
to the extent of One Million and Half
Their liabilities, immediate and ultimate, are
therefore perfectly equal. One of them has no
Specie to speak of but it has 100000 in
Greenbacks, 100000 on deposit and subject to
draft in New-YOrk, and the rest of its assets
in the shape of good drafts drawn against
produce shipped to this City, whereof about
$4,000 falls due daily for the next hundred
days. This Bank--call it the First National
in our view, is perfectly ready to resume
Specie payment, though its Specie is of
no account. The Other-which we have
called the Second NatiOnal-has 100000
in Coin in its vaults, with $1,000 in
Observation-Disclosures equal TO q third of its
Total liabilities, except.t0 its stockholders. But
TINS Bank has loaned its funds mainly TO its
directors and their crones, who have invested
them IN wild lands at the far West and grand
houses wherein they severally reside, and so
are utterly unable to pay their notes otherwise
thah Dy giving new ones This Bank is in
solvent, In spite of its plethoric vaults. and
VIII collapse under the first serious trial of
its strength.
al! this we assume, is truth familiar to men
Q. business YET IL seems to us ignored by
Mr. Boutwell, in his boarding policy.
II nobody else wanted Gold for Poper fine
Treasury holds far too much of it. Were II 70
resume Tomorrow, it would probably be- drained
IN n week, not because its stock of coin ia 60
slender, but because so many have q proGtabl.
use FOR the article. What is needed to enobIo |
the Treasury to resume without balk or trent |
dation is an abundance of Gold in the hand. |
OF those who need or can proGtably use il, |
Win security ready TO DO exchanged for the |.