New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-07-21
4 CHINESE PUZZLE.


a clear and comprehensive statement from
Secretary Richardson of the way the Public
Debt statements are made out when Syndi-
cate operation is going on would be very use
full in this hot weather. The whole foreign
commerce of the country, the internal trade,
also, as being intimately connected with the
foreign, and all foreign exchange operations
Of whatever nature, are subject to derange-
ment from fluctuations in the price Of gold;
and the gold premium very much depends on
the quantity to be taken in or paid out by the
Treasury. Tho English Government was very
much porplexed to know how to pay the Ala
bama award, amounting to s15,5OO,0O0 in gold,
without deranging the London money market
Now the average amount Of gold held by the
Bank Of England is four times as much as
the average held by the New-York banks,
and if the sudden withdrawal Of fifteen mil
lions is liable,tO cOnvulse the money market
of the British metropolis, the unforeseen TAX
ing away Of even a less sum might produce
great CONFUSION III New-YOrk. Hence we
regard the question we are about to discuss
as one OF very considerable importance.
If we are not mistaken, the Syndicate Of
American, English and German bankers who
are now pedd.ing out our bonds among the
Bourses of Europe, agreed about the end
of February last, to take fifty millions Of
the new per cent Funded Loan" and pay
for them on the 1st Of June. They have the
option Of making payment either in bonds of
the fifty millions Of tho 1862 issue OF Five
Twenties, called on the LIST Of March for re-
demption on tho 1st Of June, or in any Of
the bonds Of the per cents known as Five
Twenties, whether called OrnOt called, Orin coin.
1t is known that about fifteen millions Of the
fifty millions called for redemption have been
paid off in gold coin by tho Treasury. Now
the question is, have the Syndicate paid for
the fifty millions Of the Funded Loan wholly in
Five-Twenty bonds, or partly in Five-Twen-
ties and partly in coin 1t is now over seven
weeks since the Syndicate made their settle
ment with the Treasury-fOr we suppose they
meet their engagements promptly-and we are
without any information from Washington On
this important point.
AS VIC have said, fifty millions, or there
aJouts, of Five-Twenty bonds have been either
redeemed in coin, or exchanged for the
Funded Loan since the first of June. In fact,
we know that Of the old bonds about fifteen
millions have been paid off in cash at New
York. 1t seems that thirty days is too short
time to adjust this account, or any part Of
it. in Washington. Accordingly the entire
fifty millions of called bonds are counted iu
the Debt Statement as still outstanding and
unpaid; all the bonds which have been ex-
changed for the new fves ares also entered as out
standing and unpaid; the fifty millions newly
issued Of the Funded Loan IL considered as
having no existence, and the fifteen millions
Of gold coin paid out in redemption Of
the called bonds is still counted as cash
in the Treasury. AL this seems to US to
detract not little from the value Of the
monthly statements of the Public Debt and
condition OF tho Treasury. But the confusion
does not end here. The bankers who received
the fifteen millions in coin for the bonds paid
off in this city last month Immediately depos-
tied their gold in the Treasury, and received
gold certificates therefor. Here we have a
curious anomaly. Tho Treasury refuses to
deduct the fifteen millions from its gold bal
ance when paid out in redemption of called
bonds, but is forced to add the fifteen mil
lions to its cash on hand when paid back
again III exchange for gold certificates. Hence
this fifteen million dollars is counted in Che
"coin IN the Treasury" rs thirty millions
Whether or not the above is the correct Key
40 tIc construction Of the Public Debt state