New-York tribune., 1877-09-03
THE DEBT SYArEMENT-THE BANKS.

The reduction Of the public debt during the
month of August was $7,S69, ,538 80 "On the
face of the returns" But the Secretary has
very properly treated as debt OF the United
States the amounts required for the Military
Service, but not paid because OF the failure OF
the Army Appropriation bill Deductlng on
this account 81 ,0O0,000 for August and T5OO,-
600 for july the reduction of debt during the
month is stated at So, SG9, ,53S 80. and since
the beginning of the fiscal year at S4,Gss,-
4l3 50. The changes during the month are
reduction of $50, 1S4 200 in 6 per cent bonds,
and an increase of %30,0O0000 i'll 4l2 per
cent bonds outstanding, the per cent bonds
not vet appearing in the statement; an III
crease of $7,37S, $50 in the debt on which
interest has ceased, and decrease OF
81. .73O, ,307 80 in the nOn-interest bearing
debt; a decrease of S2,S29,4 434 93 in the
interest due, and an increase of S10,503,-
976 II i'll the cash owned by the Treasury, o.
which $S,3S2, $40 80 is in coin owned, and
$2,121 ,135 so in currency. 1t should be
remembered, however, that the payment oi
the sums not yet dsburSed to the army Will
reduce the currency balance by %4,j0O,OOO.
SO that there has been virtual decrease dur
ING the month Of about &1,S7S,S64 in the
currency owned 10y the Treasury The retire
mcnt of legal-tenderS at the end of the month,
and before the sale Of gold on Saturday,
makes the coin increase appear T1,OOO,OOO
larger. and the lcga-tender balance about
- .O39. .OO0 smaller, than they should appear
from the operations properly belonging to the
month. OF the $GS,319 j3G % in coin hcld
i'm excess of coin certificates outstanding SO,
5I9,GlS - is covered by interest due and
accrued on other than called bonds, leaving
81, 500 900 applicable to the work OF rcsump-
tion, less such sum as may Ia. necessary 10
meet called bonds and interest thereon in cX-
cess OF the provision made in funding.
The reduction Of legal-tenders in circulation
Is S,1,11S,O1G for August, and TGl2,221 30 III
fractional currency notes were also retired
during the month. With respect to the wOri,
of resumption, the operations OF the month.
including the sale of gold on SATURDAY,
amount to this: The Treasury has actually
redeemed $1,73O,307 80 of its paper; has III
creased the store Of coin applicable to re-
denption from S31 900, 900 to 80, ,O0O, 900,
and has increased the store of It's notes on
hand about f3,1GO,00O, though debts to the
army have increased by Si,0O0,000. These
for a single month toward resumption of
specie payments and the price of gold has de
clnea from 1888, August l, to 1O37s, Septem-
Der 1. But the change in price has been
largely affected by the condition Of foreign
markets and trade, and the revival of ship
ments from England.
There have been no changes OF Importance
during the month in the aggregate Of bank
circulation, but considerable change in It's
location. The amount issued is $1,397,57O
AGAINST S1,373,4S0 retired OF surrendered,
giving an increase OF only $4,000 during the
month. Meanwhile the lcgal-tenders on de-
post have decreased T1S0,20O, so that the net
decrease of legal-tendelS not on deposit and of
bank notes outstanding has beeu T913,756. But
the new issues, though to banks Of five Southern
and eight Western States, have been more
than balanced in those sections by surrender
of currency. To New-England banks 500, so
has been issued, while the amount surrcn-
dered and retired was only S27 400 to banks
Of the Middle States $500,25O was issed,
while only $399, ,OSO was retired but to banks
of the South the issues We're only 500, 800,
while the decrease was $4,000 by liquida-
tion. and S345,OOO by surrender; and to
banks of the West the increase was $274,9O0,
while the decrease was $4,000 by liquidation,
and over 100000 by surrender. The West
and south steadily lose, and the East as stead
ily gains, under the Banking Act
1t is quite possible that in consequence of
this change, which has been very great within
the past three years, the amount OF currency
reonired to be forwarded from the East to
facilitate the crop movement may be larger
than was formerly needed. The bank state
ment Of Saturday shows that the legal-tcnders
were reduced TO $4S, 1870, 600, decline of
S265S. 400 last week, so that the supply is
now only 50, ,4O1, 800 larger than it was at this
date III 1878, two weeks before the panic.
Part of the outflow may have been due TO the
disturbance at Chicago, but the sale of gold
withdIaws another million and leaves the banks
only 81, 362 600 stronger than they were in
1878. There Is still complaint that grain
does not move, and yet the receipts at
Western ports from August l to August
%. we're l9,349079 bushels against only
a. S2S.449 bushels TO the corresponding
date last wear. The movement may perhaps be
accelerated, also, by the annual letter Of MIR.
Caird to The London Times, IN which he est!
mates the deficiency IN the United Kingdom at
IL ,OOO, 900 quarters, concludes that all West
ern Europe is also deficient, and calculates that
America will be obliged largely to increase its
exports, and that the high prices i'll England
will continue, and probably advance. If these
views prove correct 1t will be fortunate year
for American farmers and the large exports
will help to depress the premium on gold, and
TO make the progress toward resumption more
easy But, not the less, large and speedy
grain movement would increase the immediate