Vicksburg weekly herald. (Vicksburg, Miss.) 1868-1883, 1870-05-21
WEEKLY COMMERCIAL And
FINANCIAL REVIEW.
OFFICE o. ruE vlcEssrHa HEaALB.
Nv 20 fsIl

First, il gives US another illustra'
tration of the financial strength Of
the National Treasury, and second
ly, it shows US a very satisfactory
cash balance in hand. The decrease
which Mr.. Boutwell, reports in the
aggregate OF the debt amounts TO
no less a sum during the month
than Sll,697, 793. This exhibits a
very gratifying progress, and must
tend to give strength to our credit
both at home and abroad. We are
steadily advancing to such a posi-
ton that we shall be able TO with.
draw our six per cents from the
market, and replace them with
bonds at a lower rate OF interest.
For this process no new legislation
whatever will be needed. When
the financial conditions Of the opc.
ration are favorable, oil the legal
power will be found 10 have been
conferred by existing acts of Con-
gress. Hence it Is that the agita-
ton that the Funding bill has
caused Is as gratuitous and unneC-
csslry as it is mischcviOus and de-
pressing. II that bill should be
summarily killed, It's fate would
help rather than retard the funding
Of the debt. For when this bill! Is
out of the way, the prolific cause
will have been removed OF the un-
certainty and languOr which have
disturbed the monetary movements
and paralyzed the financial life Of
the country for many months past.
In examining the changes in our
debt the first thing which strikes
the eye is the accumulation OF the
balance ia the Treasury. This bal.
ance consists oil three ilems-gold,
currency aud bonds. The gold bal.
ance is ll5 millions, out OF which
we owed ON the LIST of May 80 mil.
lions for interest, and "a millions
on gold notes. These 81 millions
being deducted, our balance of gold
dwindles down to less than 30 mil
lions. II Is evident that this 10 quite
as small a balance as VIC ought to
keep by us TO provide against emer-
gencies. For our annual coin in.
terest Is over 40 millions, and we
ought to keep on hand Of least one.
quarter OF that sun 10 provide
against the probability OF some
great catastrophe which might dis.
turb our gold revenue from Gus
toms, aud thus make us unable TO
pay the interest on our debt. For
we have no such arrangement to
fall back upon In q catastrophe as
10 possessed by the British govern
ment, which has an account with
the Bank OF England and can fore.
stall the incoming revenue by de-.
posting and drawing against IA tenn
porary issue OF certificates of in
debtedness o. exchequer bills as
they call them. Our Treasury can
get no temporary bank accommo.
dation. We must get all our money
In before we spend It, and we have
10 lock it up in our Treasury as a
reserve balance against il Ia want
cd. Thirty millions OF coin then il,
as we said, q sufficiently small
amount to be kept locked up, and
forty millions would put the Treas.
ury in o safe position.
The second item OF the Treasury
balance Is the currency, which is
about seven millions. Al this pie.
thoric period OF the year, the cur
reucy balance has sometime s, with
advantage been allowed TO accu-
mulate. For 1t Is well known that
our bank currency has no redemp-
ton machinery, which causes II TO
run home when it is not wanted.
Practically, our bank notes are ir.
redeemable, as they very seldom
20 back to the issuing bank, and,
when this does occur, the notes are
Immediately set ahOAt again. In
the old days OF State banking, the
notes all came home in the intervals
of deadiness Of business. The banks
expected them home and made pro-
vision before hand TO redeem them.
Under the present NatioHal Cur
rency law, however, every bauk
note bears the endorsement of the
Government, and passes, conse.
quently, as current as a greenback
any part OF this continent from
the Atlantic TO the Pacific. As the :
natural process Of redeeming bank !
currency does not cause 1t to con.
tract when business falls oil, the
tendency is for il to accumulate In
the great monetary centres. Asa
temporary relief, then. II Is we'll for
the Treasury TO absorb il. F.rifI {
the superhuous currency accumu-
in bank, it's certain conse.
qucnce is TO givea morbid tone to
the loan market, aud the usual re-
suit is u violent access of the spec
fever III Wall street. For
these reasons, then, we suggest that
Ar. Boutwell, is doing right in per-
hitting his currency balance TO a
augment, and he eau safely pursue 2
same policy with moderation r
I'LL the reviviug activity IN the fsli =
.Fade shall offer an enlarged field r
'or the use Of currency, and shall
make It safe to pour forth his cur. il
'ency into general circulation once p
more. 3,
The third item in III. Boutwells d
balance is the bonds purchased In Il
he market and held in the Treas G.
Try. The full value OF these bonds h
s Sl06, 323,050, which amount, with =
.ccrued interest, to Sll0,S49,S SAP 88,