The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-08-04

g. $685. the passage which confers upon the Secre-
tary OF the Treasury this extraordinary power Of
making gold out OF paper
Certificates representing coin in the Treasury
may be issued In payment OF interest on the public
debt, which certificates, together with those Issued
for coin and bullion deposited, shall not at any
time exceed twenty per cent beyond the amount
OF coin and bullion in the Treasury, and the Ger
tcates for coin or bullion in the Treasury shall be
received at par in the payment OF duties on I'm
ports.
In the clause Immediately preceding the above 1t
Is provided that "the coin or bullion deposited for
representing certificates OF deposit shall be re-
tanned in the Treasury for the payment OF the
same" In other words, the good Secretary Is in
vested with Midas-like power; he can make gold
"elastic" he can call Old rags fresh from paper
mill certificates" and tell the public that they
represent what is In the Treasury, but what Is not
there. and II the cOn1ding public should some
day 60 to the Bureau OF the same and present
these yellow due bills issued on the basis of the
Aforesaid excess Of twenty per cent for redemp-
ton, government might suddenly find itself bank
rupt and be unable 10 meet the demand. We
should then have an answer to perplcxing conun-
drum.
THE PUBLIC DEBT.
The statement OF the public debt for the month
Of July looked for with much interest, but 1t has
disappointed those who expected an explanation
of the peculiar In which the books are kept
and figures made that are alleged to be at variance
with facts. Summarized briefly, the statement
shows a reduction during the past month OF
S37057S; since the st OF last March, of sos,
and between the lst Of March, 1869, and LIST Of
March, 1873, OF ss6s, $50. Industrial resources
have borne the brunt OF this burden; taxation to
meet this large outlay has fallen chiefly on the
producer; much of the money has not re-entered
into healthy circulation here, but has been sent to
other countries, and we are not one step nearer
THE RESUMPTION OF SPECIE PAYMENTS.
The increase In the debt bearing five per
cent interest amounts to $31, 2o4 100, while the
debt bearing no interest, to w.t. the call bonds,
has been diminished $3l, 23S, $40. The statement
reports $50. l44.lS5 as the coin balance Of the
Treasury, against which there are outstanding
So. 800 Of certificates which leaves the Depart
ment In the nominal possession OF $37 3l2, 1886,
nearly all Of which Will be absorbed by the accrued
interest on the public debt. private telegram
received from trustworthy party In Washington
yesterday states that the actual coin In the Treas
ury is only $4,5OO,ooO.
THE BANK STATEMENT.
The bank statement Is even less encouraging
than last week. showing reduction in the total
reserve of $685., COO the result Of the withdrawal
OF SPECIE which may have gone to supply the In
creased demand for gold for customs. The amount
held by the banks above the Is per cent reserve
last week. There has been an increase in loans Of
$597 1oO decrease In deposits of $277, AGO. and In
circulation OF $751; 100. The increase In legal tenders
was $sl, 500 During the corresponding week last
year the loans amounted to s295, 42S, 200. The
decrease in the total liabilities OF the banks Is
sal4,5OO. The following Is comparison Of the
| statement OF the present week with that Of Its
| predecessor
| Jaly 20. august O. Differences.
Loans w $780, $780, 100 $2S9, 1856 200 Inc s597 100
Specie 3l,249.300 80 272,20O Dec. 977, 100
CirculatiOn... 27,225, 100 271SS,O00 Dec. 81, 100
Deposits 239, 500 23S, S409 900 Dec 277,40o
Legal tenders. 49,957O0O 60,038,5 500 Inc. 81, 500
| The following shows the relation between the
| total reserve and the total liabilities w.
July g. august 2. Differences.
Specie. $751; 249, 800 $3O272 200 Dec. $977 100
Legal tenders. 40 1857 900 60038, 500 Inc 81 500
Tot. reserve $751; 2o6 300 $50. 80 TOO Dec $685. 600
Circulation. 1925 100 2718s, 600 Dec. 81 100
Deposits 239, III 800 238, 640 900 Dec 277 400
Totiabies S268. 343 400 5000 OBS 900 Dec 1914 500
25 D. c. resvc.. 66,5S5 $50 66,50 ,225 -
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