New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-08-23

The act of Nav 81, 1888, authorized the Secretary
of the Treasury. with the appreciation OF the rtoS'
dent TO cause Treasury notes to be issued aoooi"s
to the pro visions of. and subject to all the cond's
limitations and restrictions contained III the ac' VI
October IL 1887 in place OF such notes as had oeeh
or might be issued under that act ana al'eI""'u
paid into the Treasury and cancelled.
The act Of March 81. 1899 authorizing further
issue On similar conditions, was passed III inc III
stance of the Secretary of the Treasury, WHO IN
formed ,be House that il would stiil be imposSloe
TO meet the demands upon the Treasury WITHOUT IL.
President Van Buren,, in a special message oa'eu
February IL. 1910. informed Congress thaV
although the means of the Treasury Tor the whoie
wear wonld probably be equal TO the expenditures
vet the Department might notwithstanding De IN
able to meet the claims upon 1t when they ieh
due. because the largest proportion OF the charges
npon the Treasury. including the payment OF
,ensions and the redemption of Treasury notes, be-
came due in the early part of the year, while the
resources on which it might otherwise rely wou'd
most ~ he unavailable until the last half OF tue
wear. aud portion. being debts due from banks
might not be punctuallv paid
The act of March 81. 1910, was passed TO remedy
this Inconvenience, although srenuonsly opposed as
unconstitutional ard unnecessary, the House OF
Representatives being in session at one tine Tor
tweut, five hours on the bill 1t renewed the pro-
visions of the act of October r. 1887 except as to
the a,rount of notes and the time in which they
might be issued and authorized the Issue Of notes IN
lieu of those which bad been OF might DC
redeemed. but not 10 exceed. IN the amount
of notes outstanding at any one time, the sum OF
Is 900 600 to be redeemed sooner than one year II
the me ans of the Treasury would permit, by giving
sxry DAYS notice of those notes which the Depart
uoept was ready to redeem no interest TO be al
lowed thereon after the expiration of the sixty
i'm o
longer.
CONTINUALLY RECURRING DEFICITS.
Secretary Woodbury. in his report on the finances,
aated December 7, 1910. estimated that at the
close of the year 1871 there would remain III the
Treasury an available balance of orly SS24,213'
and that even this small balance might entirely DIS
appear and an actual deficit of several millions De
found under the operations OF the compromise tarlH
act OF s33, which rapidly reducing the amount
Of customs duties levied, aided by fluctuations IN
the amount of goods imported which had fallen OH
during the year 1910 neatly sixty lhlliohs Oh
dollars.
To ward off the danger of this possible deficit the
act of February 10, 1871. passed with the
limitations and provisions of the act of October
21 1887. as modified by the act of March 81, 1910.
President tyler in his message TO Congress- at It's
extra s.ion in june 1871, estimated the
probable deficit in the Treasury at The
close of the year at $l1'4O6,l3Z 9o'
while Secretary Ewing estimated the deficiency
on the 1st of September at $5,25l,3SS 80 ana
Informed Congress .nat during the previous four
wears the expenditures had exceeded the revenue
by S3l 31O,Ol4 90. On this point he says:
Thu, and TO this extent, within the last four years
were the expenditures pushed beyond The amount OF
snrp ms i'm tie Treasury ami outstanding debts due
u Uni,ed saes SO aent t d ~. s and Subject to
heavy ana immediate Liabilities | Was ALREADY our,
dened win debt incurred IN In OF peace ace a an
without adequate Resources eAeeP.. aug ,ue au,
thory granted by law 10 ansment that "a, ueSI , as
10 check its constant and rapid increase: we ma II,
Therefore as ar, as past egsaNe anu Hnaicla a. !,
National debt. The Temporary expedlen,s oy whch IL
has sustained DO not at all var is essen'i" chai-
FUNDED DEBT.
The only remedy for these notwithstanding
deficits was by loan, redeemaole at time sum
cently distant to allow the public finances AIDED
by returning prosperity among the people, chance
for recovery bill to borrow $4,000 900, re-
deemable after eight wears, was introduced III the
House June IA 1s41, and debated during many sue,
cessve days Ii opposed by some who declared
themselves averse TO creating National deo'; Nv
Others who prolessed to see III 1t scheme for START
ing Nat. ona bank, and by Others still VINO prefer
red the issue OF Treasury notes TO obtaining a
loan. 1t was advocated by members d mho
hut funding one which already existed.
entailed on the country by the democratic admins
n was the moro manly course to openly ask "A loan
navabe at some distant day rather than to continue
the issue Of which must return to the treasury
in few weeks or months to cause anotheI dencit,
Tie bill finally passed bO'h houses anu was APP
proved july 81, 1871. 1t authorZeh the PRESIDENT
In harrow on the credit of tine United States, al
any time within one year, sum not exceeding
$40 600 900 at a rate of interest not exceeding u
Der cent PAYABLE quarterly or tine loan
To be buIsabe either at the will of the Secretary
of the Treasury after six months notice or AT any
time after three years, from January l, 1912. The
oxvedw WAS 70 he
tiop OF outstanding Treasury notes, ana 10
defray the public expenses. Inc secretary
fore tbe time named for the redemption of the
stock such portions thereof as the funds OF the
(;oyernment might admit of and any surplus IN me
Treasury pledged for the redemption OF ths
This loan does not appear to have met with much
favor from those who had money to lend, OWING 10
the unsettled state OF the money market
and the short period when w Was Recsm 10
Der 20. 1s4I, tho amount received was only
S5532 726 So; while the estimated 6ebclency on
January l. 1872 was S621239 b. y ana the
ssvene for the year 1912 was $ 2is5o Gs
In this emergency Secretary Forward t,1 wit TeG
which the residue Of the loan not yet taken
should be redeemable, the reissue Of the Treasury
OF the duties on certain classes OF imports An
act authorizing the Issue anG ieis Su
Of Treasury not. notes meeting Tns w aPPOHs much
sifop on the old grounds of the unconsrltuionaiity
of bills OF credit, the inexpediency OF addlng 10
the paner money of the country, and the plea that
a little economy would enable the Government
to meet It's expenses without causing denci
In the Treasury. LIS supporters denied that tine
measure was unconstitutional. and admitted that
the best to provide for the deficiency wouid oe
by obtaining loan but asserted that II loan pli
WAS passed the money could not be obtained IN this
country ana that it would be necessary TO send the
bonds to Europe for sale which would consume
much fine while the needs of the Treasury were
urgent -,
the provisions and limitations contained IN the act
of October 49, 1897, except That The Authority
gwen was 10 expire at the end OF one year
=. lroo IN RE