The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-01-05
WASHINGTON NEWS AND GOSSIP
The Financial Outlook for 1s7I-Policy
of the National Treashry-Tho st. Do
mIngo EIpedition-John HI. Surratt.

The Washington correspondent of the Balti-
more Sun writes under date Of the LIST Instant:
The financial policy of the Secretary OF the
Treasury, and the condition OF the oepartnens
at the commencement of the new year, have
given rise to Inquiries from various quarters OF
the country, especially from the West, where
stringent money market has elctted COM
plsint that the secretary keeps locked up
in the Treasury most extraordinary cur
rency balance. 1t appears tnat on lne last
day OF the year 1863 the coin balance was,
in round numbers, seventy millions, and
the currency balance eight millions. Yester-
day the currency balance was twenty-four mil
lions. and the coin balance eighty millions,
there being difference of sixteen millions In
the currency balance. This large currency
balance the secretary finds himself compelled
to maintain. It will be remembered that he
RECENTLY stated that, since the commencement
of the new fiscal year, this balance had Deen
unusually and, for immediate purposes, un-
necessarily large. The act OF Jnly IL, 1917,
which authorized an increase OF national bank
notes. imposed upon the secretary, he says.
the duty of providing for the redemption OF
eoual amounts OF their three per cent certin-
Gates. while the decrease in the coin and cur
rency revenues, from the legislation oil last
session. makes it his duty to reserve IN the
treasury sum sufficient to enable the depart
to extraordinary means. This accumulation,
which the secretary now insists Is an absolute
measure of safety, has not affected unfaYnr-
ably the financial condition OF the country,
bnt. on the contrary, has kept The Treasury
on q proper basis to meet the great reduction
In revenue. This reduction in customs alone,
which was estimated in Congress at about
thirty-fve millions of dollars In gold, Will
reach at least forty millions year. Tnere Is
81,
nal taxation. Tomorrow, however, the coin
balance will be reduced to forty-eight millions
by the payment of thlrty-two millions OF coin
Interests but really there will remain but thirty
eioht millions OF coin In the Treasury, Tor
there are ten millions OF uncalled-tor but ac-
crued interest, which the Secretary may be
required to pay out without days nolice.
Thus, as matter of fact, the new year opens
with an actual coin balance OF but thirty.eight
millions.
The necessity for the large currency balance
has been generally explained above IN the
language of the secretary. but lew ngures
will make it clear. OF the fifty millions OF au-
thoriZed additional bank-note circulation,
thirty millions have been applied for from the
South and West fifteen millions OF which Will
probably be granted, and six millions oil which
have already ben Issued. AS iast as TINS
bank-note circulation is issued the secretary 1s
compelled to redeem the certificates In green
backs, and therefore requires good currency
balance on hand for an emergency, for, at the
rate the applications come In, five OF six mil.
lions Of currency may be required In brief
time.
There Is no reason to anticipate any impor
tant change in what is known as the gold
selling and and bond-purchaslng policy of the
secretary. He says he reasonably anticipates
that the total reduction Of the public debt for
the next. fiscal year, including payments on
account of the sinking fund, Will be about
fifty millions of dollars though he reasserts
what he stated In December-that the estt
mated expenditures for the next fiscal year,
iucluding payments on account OF the sinking
fund and for the interest on the public DEBT,
are so nearly equal to the receipts as to justify
and demand the greatest caution IN deallns
with the revenue and business OF the country.
It Is very evident, therefore, that there will oe
no further reduction of taxation at this session
of Congress. Thus stands the financial stua-
tIon OF the country as represented OF the Treas
ury Department on the 1rst OF 1871.
it is the present intention to have the senate
resolutions for the appointment OF the san 10.
mIngo annexation commission taken up ~ tng t;
House on Wednesday next, and de6ateo tnl
Thursiay night, when nnal vote is 70 DE reach.
ed. The administration feels confident that u
has the strength OF two-thirds vote required