New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1871-01-06
Boutwell,. Financial Foley.

WASHINGTON. january 1.-The financial
policy of the Secretary OF the Treasury and
the condition of the department 1T the com
menctment Of the new year, have caused
inquiries from various quarters OF the
country. and especially from the West,
where Il stringent money market has c!iclteu
complaints ,hat the Secretary keeps locked
in the treasury a most extraordinary money
balance. 1t appears that Oh the last day OF
the year 1869 the coin balance was. in round
numbers. 1900. 900. tLc currency balance
SS,0OO.OOO Yesterday the currency balance
was S2l, p00.OOO and the coin balance
$50 )OO.o0O there being di.fcrcnes OF
$4,000, 100 III the currency balance.
This large currency balance :he Secretary
finds himself compelled t" maintain. IT
will be remembered that he recently stated
that since the commencement of the new
fiscal wear this balance has been unusually.
and for immediate purposes unnecessarily.
large The act of July. 1879. which author
lied an increase Of small hank notes. I'LL
posed upon the Secretary. he says the duty
of providing for the redemption of equal
amounts of their three per cent certificates.
while the decreasing of the coin and cur
rencv revenues from the legislation oi the
last session makes it his duty t" reserve in
the treasury a sum sufficient TO enable :he
department to comply with the law. without
resorting to extraordinary means.
The accumulation which the SECRETARY
now insists Is an ab>olut. ,ne.~lVe ot safety.
has not. h. adds. affected Nnta. Morally thc
tiuancia! condition OF the country. but. o"
the contrary. has kept thc treasury ON :,
proper b.s;. 20 meet the .rea: deduction i'll
vcvtnue. The reduction i'll customs alone.
which wa. Is: mated i'll Congress at about
thirty tiv. millions OF dollar. " gold. will
reach ut ieas: forty millions year. There
is likewise. II large reduc: ION III 1ntevnal
taxation. Tomorrow. however. the coin
balance will. be reduced TO forty-eighf mil
lions by the payment OK .hirty-tw" millions
Of coin interest. bat really there will re'
main but thirty-eight millions OF coin i'll the
Treasury. for there are ten millions OF un'
called for but accrued Interest. which the
| Secretary may De required 20 pay gu: wsth'
out days notice.
Thus. a. :. matter If fact. tn.. ncs year
| open. with an actual coin :alantc"s out
! tlrty-eigl,t millions OF dollars.
Tn. necessity for she large 'urrcnc.. ball
ance has been generally explained above III
! the language of the Secretary. but few
| figure. viii! make it clearer. Of the 500 oOo.'
! 0fo of outside additional bans note cigcuia'
ton. s3o.ooo.orO have been applied to- from
! tli:. Souti. and West. Sl6.0oo.00o of which
viii probably y, granted. and s..Goo.oo0
has already been issued. IS fast as the
bank nots. circulation j. issued. :i.e Sccvc'
fa:y IS compelled to .edeein the certificates
in greenbacks. and. therefore. requires i
| good currency balance on hand for .l'
emergency. for. at the rate the applications
c.m,. in. s5.ooo, 900 or 81. 100 900 o. currency
may be required III a brief time. There Is
no reason 30 anticipate any Important
! change in what Is known As the :od-sell!nG
and bond 2urc:lasin: policy OF the secSc'
:ar".
! He anticipates :ha: :he 'o:aI reduction OF
! IA. publ. debt for the mex: tiSca. scar. III
! .!uding payments on account III Che SIN .ng
J fund, vii. be about fifty millions o: dollars
though he seasserts what he stated III De
s.mher. that :hc estimated expenditures FOL
| tn. mex. .,cai year. including va:inrnt> az
+: acsou:l. OF we sinking :vai. .n,. :cr sc IN
,cre-: "n IL. pub!:. debt. aye :" AearlE .1Ea
! I" tie. receipt. a. 10 justify .a': deMnnd the
! CREATES: caution i'll dca!in: with IA" re'c
F. u,.e. and business - IL. .Hlistr.y. 1t u
I: y..y evident: therefore th"i .,c'' AiH W
| II" iu:.i,s reduction ii :a.a.!"a a: thi
| session ~ C5M.tv>-. Ia;;s stand" :nt :nan
,iai situation a: Ike country. 80 ;.pT'..nte'
f! =. ii. Treasury Department IA .'S' ":-t .
! January. lS.:.