New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-06-05
THE PUBLIC DEBT.

The debt statement of May 81 is one OF UNI
usual interest. That the bonded debt would
be increased by about $1,000, 600, the amount
of bonds sold for gold, was expected, and the
actual increase is s'4,943,9OO. We pointed
out some time ago, moreover, that the increase
would he wholly in registered bonds, because
the amount OF AZ per cents taken abroad
would be much less than the amount OF u per
cents called in from abroad. 1t appears from
the statement that ont of $25,000,000 of 4l2
per cents added during the month, only
SlOO00,O0O were coupon bonds, and larger
amount of these arc held in this country than
there have been OF the $l50J0,O0 new 4l2
per cents taken abroad. Meanwhile the per
cent bonds retired were only $j,9G6, 600 reg
istered, and $ll,06j,500 coupon bonds. Ap-
parentiy the months transactions involve the
transfer of about 100000 Of bonds from
Europe to this country without rettIn, besides
the issue of about |j,O0C,OOO OF new bonds,
mainly 10 domestic holders. In eject, the
Government owes about five millions less
in Europe and ten millions more i'll this
country on account of these transactions
Hut there has also been considerable eX-
cLopco of common for registered bonds, some
mart of which may be due to shipment OF
other than called bonds from Europe. IL ap-
pears that the amount Of coupon bonds has
decreased Sl0, G22, $50, while the amount Of
registered bonds has Increased HlJ,JGG,OJ0
This is due to an exchange OF about p6,1OO,-
900 coupon for like amount of registered
bonds, and it is known that at least 1000
900 of g and per cents and of the new liz
pcr cents were shipped from Europe last
month. This movement has stopped, it Is
stated, and among recent changes in the Lon
don market there appears an advance in United
States securities, although railway securities
decline. This change was anticipated when
the war began, and il is probable that, unless
the war 80 extends rs to involve either Great
Britain or Germany, the foreign market will
hereafter take Government bonds in Increased
amount, while di,lru,t OF corporate manage
ment viii limit investment IN other American
securities.
In the debt on which interest has ceased
since maturity, thc changes have been only a
reduction of $727,OSO in the principal and
Of S7.j4l y in interest due. Tne chief
changes during the month have been in the
currency debt and in the cash on hand. The
old demand notes are reduced 80, the legal
tenders %l,0Sl,o2l, aud the fractional cur
rpucv S979.G45 20, making an aggregate re-
duction of $2,O6l,47i % in the forms of debt
used rs currency. The coin owned by the
Treasury has increased from $Jj,727O10 50
on the last of April 10 G2,T29,jS3 80 on the
last of May, Il gam of %7,0O2,54 81. Part
OF this is due to sales of $1,000 600 in bonds
for gold not yet exchanged for currency. The
currency balance is now $t2,277,7S6 II,
against %8,39j,1Ij IS last month, gain Of
s.. SS2, $40 90, of which SLIGO, 27l has been
added to the fund held Tor redemption of frac-
tional currency, and the balance is nearly all
accumulated in the Treasury by reason of the
failure Of appropriations and the consequent
inability OF the Administration to meet expenses
which must be covered by future legislation.
The actual reduction of the public indebted
ness is therefore abou; $j,OO0,O0O during the
month, though the non-payment Of bills which
must ultimately be recognized and met raises
it to %G,96l,274 So.
From the monthly statement of Controller
Knox it appears that the legal tenders held
for redemption Of bank notes, and not included
in the debt statement, are $l4,327,Jj2. The
five Der cent redemption iund also requires
about 81 ., SS3,2Ol. These items, with amounts
due discussing officers, aggregate about 3d.
100. 600, and the Treasury also holds against
certificates of deposit @iG,5l0,OO0 80 that
about $9l $40, 900 in legal tenders-more than
one-fouyth of tho entire amount outstanding
are now in the Treasury. But the certificates
of deposit can serve the purpose Of currency,
and the fund for redemption Of bank notes is
rapidly decreasing. On the other hand the
retirement of legal tenders by reason Of the
issue of new bank circulation is Likely 10 in