The Portland daily press., 1873-10-13
"Bankrupt Treasury"

OduhTupt IEodcuiys
Our clever evening contemporary, who full
ly appreciates the force of a startling head
ing, astonished its readers last week with an
article bearing the caption: Bankrupt
Treasury" 1t is an excellent heading in a
journalistic point of view, but the candid and
intelligent reader will fail to find in the re-
Elections of the Advertiser upon the Admin
istration based upon an inn erfect abstract of
Gen Spnner's forthcoming report of the re-
ceipts and expenditures of the Treasury. as
well as its criticism upon the policy of Secre-
tary Richardson, the slightest evidence that
the Govern ment is bankrupt OF will fail to
pay its liabilities. That Gen. Spinner's re-
port shows balance in the Treasury, June
Both, 1873, of S131, IT'S, 1892 against bal
ance of $106, 551, 644.24 in 1872, that the
Treasury responds promptly toevery demand,
pays the interest of the national debt even
before due, and the Secretary is enabled 10
fund this debt at lower rate of interest than
that at which it was originally placed, are not
facts that usually indicate state of hopeless
Insolvency or cause any alarm on that ac-
count.
But the chief complaint is that Secretary
Richardson is drawing upon the reserve
fund of S44,000,00O, to pay the current ex-
penses of the Government. What is this re-
serve fund? Simply $44,000,000 of the
$400,0O0,000 of greenbacks issued by the
Government, withdrawn from circulation
by being taken as internal revenue,
taxes for public land and other sources,
and put away in compliance with an act
of Congress passed in 1866. This reserve the
President refused to issue at the request of
Wall street, to stop the panic that Wall
street and other spectators and gamblers
have caused by locking up currency, on the
ground that he had no authority to do it. As
to the right of the Department TO use the re-
serve there has always been question. Ex-
Secretary Boutwell,, if we are not mistaken,
always held that he had clear right to use
it, while others have maintained the opposite
opinion. Within a few days, the New York
Post is informed, Secretary Richardson has
submitted the question of his right to use the
reserve for the legitimate purposes of the
cides that it is within the province of that Of
hcer to use it in the payment of the usual de-
mands upon the Department
1t is very important 10 state in connection
with the action of the Secretary of the Treas
ury, why he has decided to use part of the
reserve fund for the current expenses of the
Government. 1t happened in this wise. In
order to relieve the money market few
weeks since, when the panic was at its
height, the Secretary paid out S14 ,OO0,O 900 of
the currency in the Treasury, kept to meet
current demands, for five-twenty bonds, re-
lying upon the usual receipts of the internal
revenue and other currency sources to meet the
usual demands The panic and stringency in
the money market has caused temporary
falling off in these receipts that was not con-
templated, and Mr.. Richardson finds himself
short.
He has either to sell gold, resort to the
$44, 100000, or do as banks do, issue certified
checks. He chose to resort to the reserve
fund. Perhaps it would have been better to
have sold gold; and there are not few who
positively declare that it would. 1t is as
serted that the Secretary will not use more
than $5,OO0,OOO of the fund and will be able
to restore it after very brief period.
The Treasury has nearly 100000 of gold
in its vaults, its receipts so exceed its expen-
ditnres as TO leave good balance to go to-
ward the reduction of its debt, and it pays all
demands promptly consequently this story of
bankruptcy is too idle and senseless for acam
paign bug-a-boo and should not find place
in the columns of respectable opposition jour
nails.
The statement of the Advertiser that the
actual expenditures of the Government for
the fiscal year of 1912, exceed those of the
year 1873 by $27, 1000 900 is an error, growing
out Of the statement of the press report that
the expenditures on account of the public
debt in 1928, were $343, 5,945 against
1928, 323,4l4 the year previous. The fact is,
the expenditures Oh account of the public
debt that year 1871-2) were 1924, 276, 359. Y.
The press report is so confused, as given, that
the expenditures of the various departments
cannot be compared with the official reports
of 1912, but when this can be done, we are
satisfied from partial comparison, no such
increase of actual expense in the usual ex-
penditures of Government will be found as
that which the Advertiser makes such extra
ordinary haste to declare.
The effort to excite public distrust of the
management of so important department as
the Treasury, by misstatement of facts and
arrangement Of figures, is, not only dishon-
est but unpatriotic and incendiary. All
business operations and the general national
prosperity depend so closely, not only upon
the wise and honest management of the
Treasury Department, but also upon the con-
f1dence of the people ia it that an effort to
disturb such confidence, upon Insufficient
grounds, for partisan purposes, is simply out
rageous and inconsistent with the duties of a
good citizen.