New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-09-04
THE DEBT SETTLEMENT.

coin liabilities The debt statement Of August
81 shows that the Treasury has on hand, in ex-
cess of the amount covered by certificates OF
deposit, 1914, 4O2, S59 81 in specie, an increase
of 1913, O26, O37 0S during the month OF August.
The entire amount of called bonds outstanding
and other debt on which interest has ceased,
is $11 1913, $50 26, an increase of $2,9G4OlO
during the month. The entire amount of
interest due, and accrued to date but
not yet due, including $4,000 due
in currency on navy fund, is ST.
S9O.9I7 %, an increase of $1,71l,674 II
during the month. Besides these amounts, the
Treasury has outstanding $346,743,256 IN
leg,-tender and old demand notes. Thus we
have, as the total coin Indebtedness of the
Treasury, exclusive of certificates OF deposit
1886, COZ, 1913, and Of this sum the 1874, 4O2,-
S54 81 in specie owned by the Treasury is
SOB per cent. At the beginning of August,
upon the same basis of comparison, the Treas
ury owned $161, 376, 800 40 in specie, to meet
coin liabilities of 1881, 1892, 1GG Oh, or 42.9
per cent.
OF course it will be understood that the
great increase of specie in the Treasury IL
mainly due to sales Of four per cent bonds,
nEdiUhl WHICH tdllN lOt OLA pNl N'hAo 'N'i4
made, but the bonds thus called do not yet
appear in the specie liabilities, because the
calls have not yet matured. The increase III
four per cent bonds outstanding during the
month of August was S29,0OO,O0O, and the
increase of specie OH hand was only S4,O26,-
OBJ O8 larger. II the unmatured calls are in
cluded as a present coin liability, the proper
ton of specie owned to coin liabilities is less
than 50 per cent. But there are three other
considerations to be taken into account.
First, the sales of four per cent bonds continue
very large, and there is now no reason to APP
prchend that they will diminish during the
four months which remain before the date of
formal resumption. With new supplies of
specie flowing in, as fast "a coin goes ont in
payment on maturing calls for six per cent
bonds, it is evident that the Treasury virtu-
ally has at command at all times a specie fund
nearly corresponding TO the excess of new
subscriptions over called bonds deposited as
security by bankers engaged In negotiating
the new bonds How large that excess may
be is not definitely known. But, second, the
Treasury has in its vaults a very large amount
of the legal-tendcr notes technically Outstand-
ing The currency balance August 81 was
$12 1872, III 81, an increase of $1,0l3,S54 "a
during the month, and this sum ut least must
be deducted from the specie liabiliti, More
over the Treasury holds in various funds
which cannot be materially diminished still
larger amount Of legal tenders, which can ct
actually be presented for redemption, md
therefore must be deducted from specie habili-
ties. And, finally, large part of the interest
oil Of tin,a he only acPrupl lint
not yet due, 80 that the corresponding amount
Of specie is free for use in any emergency.
The amount accrued, but not yet due, included
in the above interest statement is $1697S,-
$50 70.
1t will be noticed that the fractional cur
rency outstanding has not been mentioned rs
part of the specie liability. The amount is
nominaly $1G,351, 1913 10, but the Tedcmp-
ton goes on very slowly, and at fast dimn-
ishing ratio, only $1O3,87O OF having been
redeemed last month. Those who have yHan-
ined the subject most closely are of the opin-
ion that much more than $4,000 900, and
probably nearly $15, OOO,O OO Of the fractional
notes has been lost or destroyed, so that 1t
can never appear for redemption. In any
case, the amount yet to be redeemed is insig-
Dihcant, and, as the notes may be expected to
come in at rate not exceeding 100000 per
month, the item Is not worth considering in
connection with the preparations for resump-
ton.
In every respect the debt statement is very
satisfactory. The decrease Of $G,475, 504 "a
in the debt less cash during the month of Au-
gust is the more encouraging because 1t is
known that large amounts were paid cut just
before the end of the month, to meet cur
rency and coin obligations on the 1st of Sep
TENDER, and but for these payments the bal
ances would be still larger, The internal
revenue receipts were much larger during the
latter part of August than was expected, and
the gradual increase of imports gives hope
that the coin receipts from customs may here
after increase. With available specie amount
ing to more than 80 per cent of its coin liza
bilities, the Treasury is surely in safe condi-
ton to adopt more vigorous measures than
have vet been taken for the restoration of its
notes to par value.
1t is reported anew that Secretary Sher-
meits of gold. He is in position to
know, better than the public, what his OPP
portunlties are /; he has the highest pos
sible personal interest in the success of his
plans for resumption; and he has n right to
ask, and from reasonable men will receive,
the utmost confidence in his selection of means
to the end desiled. Whether the eff
fort TO put silver coins into circulation
was designed to satisfy the minds OF others,
OF to resolve doubt in his own mind.
the experiment has certainly proved that
nothing can be done in that direction with
out withdrawal of small notes. On the other
hand, it does not seem possible to doubt that
proponents of gold instead Of legal-tenders
would quickly convince tue public that the
notes of the Government are at last really
worth as much as the coin which they prom