Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-11-18
The Governments Financial Opera
tiOnS.
ANNUAL REPORT OF TREASURER GrLFrLLAN.

ended June 30th laSt-"a year" as the report
says, characterized by great transactions con-
nected with the refunding of the war loans into
| four per cents, and the resumption of specie
! payments after suspension of seventeen years;
| year of business which has taxed the industry
of tie office in all the varied duties devOlved
| upon the Treasurer as charged with the custody
OF all public moneys received into the Treasury
and the disbursement thereof upon the warrants
of the Secretary of the Treasury and upon the
warrants of the Postmaster General; as fiscal
agent for the payment OF interest upon the
| public debt; as the financial agent of the gov
erDment for the issue and redemption of the
United States note circulation; as agent, alSo'
| for the redemption of the circulating notes Of
all national banks as trustee and custodian of
bonds held by the Treasury for the security OF
| the circulating notes of national banks and of
bonds held as security for public deposits there
in as assessor and collector of all federal taxes
on circulation, capital. and deposits of national
banks; as custodian of Indian trust funds and
bonds of the Pacific Railway sinking funds; as
agent for paying the salaries OF the members of
the House of Representatives, and as commits
sioner OF the sinking fund Of the District Of
Columbia"
COMPARISON
OF the condition of the public funds upon the
dates OF September 30th 1876 1871, 1878 and 1879,
| shows two facts-an immense increase in coin
and bullion, and decrease in the note assets.
| The aggregate Of gold coin and bullion and Of
silver coin and MISUNDERSTANDING standard sill
yer dollars, which, being coined under the act of
February 2s, 1878, do not appear in the state
ment prior to that year-increaSed from $61, 49,
426.15 in 1876 to S114 464 9S2 70 in 1871 to $685.
969 444 70 in 1875 and to 1922 sO7, ,s6sO1 in 1879
The decrease in the aggregate note assets, in
Guiding credits in depositary banks on other
than loan account, has been gradual, the apparent
increase In 1877 being due to the failure OF the
Army bill to become law and the accumula-
t1on Of funds consequent upon Withholding pay
ment to that branch Of the service. The note
assets ranged as follows on the above dates: In
1916 S9s in 1871 s1o1 664 "a; in 1878,
SIS, ,172, 500. IA; and in 1879, $50 Cog, ,0sO.4O.
The decrease in the note balance arises from
various causes, notably from the receipt for GUS
toms and internal revenue Of coin paid out in
the purchase OF bullion for the coinage of stand
ard silver dollars; from the exchange of notes
for gold, and the payment of notes for foreign
gold received at the assay office, New York;
from the purchase of gold bullion with notes,
and the payment of interest upon the public
debt in United States notes, and from the pay
ment OF arrears OF pensions.
The most constant influence in the decrease
Of the note balance is that which proceeds from
the
PURCHASE OF SILVER BULLION FOR COINAGE,
thereby depriving the Treasury OF an equal
amount of note receipts. All the above-men-
toned causes of the diminution, except this,
can be controlled by the department. The pur-
chase of silver bullion for gold coin would in
yolve the same loss Of note revenues, and this
loss Will continue as long as the purchase OF
bullion under the silver dollar act shall con-
. tnue The m flrst bull bullion for this coinage was
ses were made with standard silver dollars
coined from bullion previously purchased. The
COlu tuuS ulSDuTSeu speedily returned III pay
ment OF dues, and, before resumption, every sill
yer dollar or silver certificate, paid out for bull
lion, by its return thrOgh the custom-hOuses
me treasury an OF god fo coin dt Which would
resumption, however, the Treasury is deprived
by the receipt OF coin paid for bullion, of like
amount of United States notes, amounting
| probably to seven per cent. of the annual reve-
| nues This percentage is greater than the
margin between the public receipts and expen-
ditureS, and will in time, without the other in
f1npnnpS manfinnpd render hQ1Qnna
Treasury, exclusively metallic and then exclu-
| sfvely silver.
That this is so glance at the monetary oper-
ations OF the Government will show. The an
nual receipts from all sources are $274 600 0O0 of
this amount at least 1924 600 900 is in silver dol
lars or in silver certificates. that being the mini
mum paid annually for silver bullion for coin
| age, which amount speedily finds its way into
the TreaSuTy-the more certainly because pay
ments for bullion are made either at New York
| or san Francisco, which are both centerS of
| large receipts by the Government. The maxi
| mum net note receipts are then $3.50, 900 900,
against which are payments of s261, ,oO0, 900 for
| debt, War and Navy establishment, and pen
sions, made in notes. or if made in con its re-
@ turn decreases the note receipts to that extent.
The excess of note expenditures over note re-
cefpts is Therefore ST., 100000, which is the an
nual decrease OF the note balance from the silver
| dollar coinage alone.
OF the s59699 OSO.4 40 note balance of the Treas
ury, september 3O 1879, but s53;042, ,6S6.T7 is
available, the remainder being simply credit
Will UdllkS. VI 1lle laUUer sum
500 GOO represented by clearing house certfi-
Gates outstanding, is, by sections 1913 and 5 1874
Revised Statutes, held as a special deposit and
traction Of the currency. but only for Il the sT re-
demption Of such certificates leaving 1928, ,sO2,-
6s6a and the current receipts to be applied to
the payment Of other demands, including the
funds for the redemption Of national bank notes:
the hve per cent. redemption fund being
SO, ,4s2, and the fund for the redemption OF
the notes of failed, nquidating and reducing
banks being s12, ,939, $50. Demands upon both are
now met with United States notes, for the rea-
son that all national bank notes presented for
redemption are paid for from the five per cent
fund upon their receipt, and after assortment
that rund is reimbursed from the other to the
amount found due.
The TREASURY MEMBER OF THE N. Y. CLEAR
ING HOUSE.
The arrangement by which the Treasury be-
came In January member of the New York
Clearing House has been of incalculable advan-
tage in establishing resumption and in saving
useless handling OF money, and may be made to
check the depletion Of the Treasury Of notes by
permitting the settlement OF balances in coin to
the extent that any eXigency may demand.
But at present the Treasury membership inures
to the benefit of the clearing house banks, and
unless change in the rules is made permitting
payment OF all or a certain percentage of bal
ances in silver, 1t may become desirable for the
Ireasuary to withdraw from a relation which
renders over thirty millions OF lawful money in
its vaults unavailable for payment at New York,
the point of greatest public disbursement. Ali
checks In payment Of called bonds and in pay
ment for foreign gold are now paid in gold.
The decrease or notes In the Treasury continues
however, and will keep on until the limitation
or cessation Of the present silver-dollar coinage
1t is not the function of this Office to do more
than to set forth the facts. Everything has been
done to put silver and gold into circulation To
this end all payments are made at the various
offices in silver, gold and notes-ten per cent.
each in silver and gold and the remainder in
notes, unless the payee desires more coin. A
further saving might be made by sllspendlng
the purchase with notes Of gold bullion at the
various assay Offices.
The silver bullion on hand has also decreased
during the year from So 634, 4S to g. 299 1A.25
on account of the difficulty In making purchases,
as prescribed In the act Of February 2S, 1878, at
the market rate, which is held by the depart
ment to be the equivalent OF the London rate.
The ten-m1lliOn fund In United States notes.
held for the redemption of fractional currency,
has disappeared from the assets under the pro-
visions OF law, which devoted it to the payment
OF arrears Of pensions to soldiers in the war Of
the rebellion.
UNAVAILABLE FUNDS.
The total amount Of unavailable moneys car
fled in the balances of the accounts Of this Office
on the dates mentioned, was as follows:
June 81, 1878. .$29, ,622 241 p
June 30, 1879. 29552 2S4. 81
The difference $50 956 "a
arises as follows: s47, ,097.65, which was stolen
from the Treasury June 2, 1875, was transferred
to the hooks the RppiStpr n the Troa curIy nv,