New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-11-03
TIE DEBT md CURRENCY.

of debt less cash in the Treasury was $685.
554 3O-a very large decrease. 1t is encourag-
ing, also. that of this reduction So, 424, 900 is
by retirement of legal-tenders, and $434,O67 6l
by redemption of fractional currency. 1t Is
also an encouraging fact that the cash in the
Treasury has largely increased On the 1st OF
October, deducting the amount due for the Army,
it was S17S, 3O3,92 6S, and on the 1st of No
vember it was 1854, ,045 50, an increase of
s6.234,116 80. Against this increase of cash
and decrease of demand liabilities, we have an
increase of $2,5SS, $50 81 in interest and
decrease of $590,617 OIL in the principal OF
this debt In brief, there has been an increase
of nearly 100000 in the debt. notwlth-
standing the retirement of legal-tenders and
the payment of fractional notes, and an
increase of about 1929, 900 in the cash on
hand. Deducting coin certificates, $33, ODD
200, the amount of gold and silver owned
by the Treasury is $97, 40, 643 94. but
about S4.S64,415 is held for interest
due and not paid, and about $2G,290,9OO for
called bonds. The balance, which Is wholly
applicable for redemption of outstanding notes,
is SG6, 324,32S "a, and of this sum it is stated
that only $2,295,92 is in subsidiary silver
CON- the balance being in gold. The increase
in coin reserve during the month. has been
very satisfactory. As to the currency reserve
it amounts to $25 ,395,2O1 Ga, Notwithstanding
the retirement Of 50, 424, 900 in legal-tenders,
but the amount estimated to be due to the
Army is now $780, 900, so that the avail
able or permanent legal tender balance is not
more than about $15, 100000; but the CORE
spending balance at the beginning OF October
was only about $16,041,00 The Treasury
has done much better than was expected. 1t
has gathered i'll legal-tenders enough to pro-
vide for the payments not yet made but due
to the Army, and nearly enough besides to
meet an extraordinarily large retirement on
account of new bank circulation issued.
This is Secretary Sherman's answer to the
bills pending in the House. The Treasury
steadily pays its debts reduces the outstanding
legal-tenders as the law requires, and, to the
surprise of many, accumulates coin without
unfavorably affecting the premium on gold.
1t is singular fact that the accumulation of
coin, though much more rapid than the pro-
duction of American mines, and though not
explained by any excess of imports over
exports of coin, nevertheless causes no adj
vance in the gold premium. This implies
IL -
private hands, either here or Oh the Pacific
coast has been opened to the demands of the
Government and the magnitude of that re-
serve, and the extent to which it can be de-
peted, without material change of price, be-
come. very important i'll respect to the pre-
MUM, and in respect to the prospect OF re-
sumption.
The currency statement, issued as usual by
Controller Knox on the 1st of the month";,
shows a large increase of National bank notes.
The amount surrendered has beeL large, but
the amount required to be issued has been
much larger and the excess of new issue has
been wholly to banks of this city, Boston
and Philadelphia. Outside of these cities,
there has been a decrease. The Free Banking
Act it appears, encourages increase of circulation
at the chef commercial centres, whenever
new circulation is needed. but the retirement
of circulation outside of those centres fully
equals the issue of new circulation. The re-
suit is that loans at those centres may be in
creased, or, when sharp contraction of legal
tenders becomes necessary, the average OF
loans is less rapidly decreased.