New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-03-12
CONGRESS AND THE TREASURY.

| Secretary Sherman will be strongly urged,
| by business men of many classes. to increase
| largely bis purch ses Of United States bonds.
Some insist that it is not good faith for him
| to refuse, but such criticism Is most I'M
reasonable. The public announcement of the
Secretary. 1t is well to remember, was that he
would purchase bonds amounting TO 81, 100000
per week until further orders, and he has
| bought not only that amount but much more.
He is bound to act, not with regard for the
Temporary interests of dealers Of any c'ass,
but for the b st interests of the Government
and the people as a whole. SO long as he
does so he deserves appreciation, whether Lis
course suits the interests of individuals or
not
A more reasonable criticism, and one which
has the support of many judicious men, is
based upon the belief that the Treasury is
accommodating a large amount of money for
which it has no On account OF
the enormous importaticns,> the payments
to the Government for duties have been
quite large. Last week the imports
amounted to $13, 900, and If the duties
average 40 per cent, the'amount already paid
or to be paid on that account to the Govern
ment exceeds $500. 900. But 1t does not
follow that the Treasury can safely dlsburse
an amount correspondingly IN excess of its
customary expenditures. The full amount of
duties on imports does not go into the Treas
ury Immediately upon arrival OF the goods,
as q considerable proportion of the goods inn
ported goes into warehouse. Nor can the
Secretary safely rely upon a continuance of
receipts at the abnormal rate recently prevail
ing; on the contrary, it Is to be expected that
a glut In the markets for many kinds of i'm
ported goods will speedily follow the unusually
large importations and that the imports and
receipts of the Government will then fall off.
Moreover, Congress is still in session, and it
is impossible TO guess how large sums may
yet be appropriated. Since the votes In the
House to deny control of the River and Harbor
bill to the Committee on Appropriations. 1t
has been evident that the members who look
for liberal legislation ore in the majority.
Nor can the Secretary be sure that Congress
will not materially reduce the revenues by
changes of the tariff.
All these considerations Justify the Secre-
tary in proceeding with great caution In tho
dls5urs ement of cash for bonds But there is
one other, to which he has officially called the
attention Of Congress in vain. AT present the
Treasury is obliged TO stow away at least
So, 900, 900 of useless silver each month, and
to pay out gold or It's equivalent III the pur-
chase of silver bullion. Twenty-Five millions
in gold might with safety be applied to the
purchase of bonds within the current year.
which cannot now be so applied, II the silver
coinage had been discontinued, as Mr. Sber-
man recommended. Nor Is this Ill. The fact
has been widely noticed that the gold reserve
Of the Treasury is being rapidly reduced, and
the silver reserve cOrrespOndlngly increased,
and this fact causes not little apprehension.
Ii leads many. banks and bankers In all parts
of the country, to get into their possession
stores Of gold, by way Of provision against
possible mischief hereafter and there can no
longer be any doubt that considerable boarding
Of gold has commenced, by individuals as well
as by bankers who are obliged to hold reserves.
How great this drain upon the resources of the
Treasury and the country may become, it Is
not easy for the Secretary to judge, but 1t is
certain that he ought not to overlook 1t wholly,
as long as Congress persists in requiring the
coinage of silver.
Finally, the prices of commodities have so
advanced, and imports have so increased and
exports decreased. that the country may at
any time be Obliged to send much gold abroad
This would cause another and very important
demand upons the reserves in the Treasury.
So long as there is O probability that gold
may be drawn from us In large amounts, Mr..
Sherman would be unwise to depete his re-
serves by excessive purchases Of bonds. And
so long as prices of commodities are held so
high as to check exports and unnaturally
stimulate imports, so long Mr.. Sherman Is
compelled to provide against probable out
flow Of gold.