Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-05-14
DEBT STATEMENTS AND FINAN-
CIAL MANAGEMENT.

CIAL MANAGEMENT.
The debt statements put forth by the
Treasury Department are standing re-
futation of the old adage that Figures
viii not lie." For instance, it is claimed
that the decrease in the public debt during
April amounted to 81, 697, 79S. The
New York Journal Of Commerce dissects
the statement showing this great PRODUCTION
with the following result: ''The debt
bearing coin interest has in creased 81, 100
during the month, if we take no account
of the 81, 900, 900 bonds that have been
purchased The currency interest debt
has decreased $50, 900. The debt bearing
no interest has decreased S., 224, 1858,
while the matured debt outstanding is
1928, 769 29 less than last month. The
net decrease in the debt is thus S., $780,
927. 50. The coin in the Treasury has
increased $10,1l1, 1885. The currency
has diminished $516, $3.50. Taking in
here 81, 900, 600 bonds purchased, We
have a net increase of 1882
832.96 in the Treasury assets and
decrease of SIS, 969, 769.7s in the
debt, less assets in the Treasury.
According to the Secretary's mode of
statement, ignoring the Pacific railrosd
subsidy bonds and combining accrued in
terest everywhere with principal, the
debt, less assets in the Treasury, is 81
400, S64, 334 35, diminution of 81, 697,-
799 SO during the month, and 81, 464,-
142 50 since March /, 1870. The coin
interest accured, according to the Secre-
tary's statement, is $50, 80 /, 1856,
against $49, 73S, 5O4.95 last month. He
states the currency interest at 1910, 443,-
80, against 483, 659 As last month. The
interest due on the matured debt is $780,
553. 80; last month it was 1912, 908. 60!
The interest on the Pacific railroad SUBJ
sidy bonds, of which he makes no ac-
count in his totals, is 1892, 1885 a
month ago it was 1853, 1927. so. The Pa
cifc railroad companies have, during the
month, repaid by transportation $33, 213,-
- of the interest already paid by the
United States on these bonds, making
total repayment of s2,O63, 7S416, leav-
ing still 10 be refunded 81, SIG, O4S. 95.
The United States Economist New
York; places implicit faith in the state
ment of the Secretary of the Treasury,
that the debt was reduced during April
81, 697, 793, and credits 'fhe new adj
ministration" with having reduced the
debt since March 4, 1869, $l04, 59S, 945.
But this paper finds serious fault with Mr..
Boutwell's management of the finances.
Giving him credit for the reduction he
claims, the Economist says: SIN every
other important respect, the debt state
meut is a blunder if not something
worse. What is to be said in
favor of the policy of devoting all
the financial strength of the Govern
ment to the maintenance of an arbitrary
premium on gold, in place of aDnihilating
the premium altogether by resumption
of specie payments. The Secretary of
the Treasury persists in his see-saw game
of gold sales and bond purchases, to the
constant arrangement of all commercial
values. The amount of gold in the
Treasury on May l, amounted to sll5,-
525, 214. The amount due depositors was
SSS, $40, 600, and the payments for the
MAY interest reach about $24, 600, 600,
making a total of $57, $40, 400 to be de-
Quoted from the amount of coin on hand.
This leaves sum of $57, 6S4, Sl4 in the
absolute ownership of the government.
Here we have vast amount of capital
locked up from business and commerce,
amounting to more than half the aver
age reserve of bullion in the Bank
of England. There can be no doubt
that this sum of $57, ZOO, 600 would go
far towards restoring specie payments. In
effect very much larger amount is avail
able, for the $50, 900, 600 held for depOsi-
tors is loan to the government, and
could be used for the maintenance of its
credit under some such condition as the
reception of the gold notes for payment
of customs. The disbursements of coin
interest would Indirectly aid the treasury
by increasing the amount of specie in the
hands of the public, and thus diminish