New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-08-23
FROM 1886 TO 1913.
TIE ADMINISTRATIONS OF VAN BuREy. TYLER AND
POLK.

FROM 1886 I'D 1913.
TIE ADMINISTRATIONS OF VAN buren, TYLER AND
POLK.
ley TELEGRAPH To THE TRIbCsE.i
WASHINGTON, Aug. 22.-THE TrIBUNE of the 26th
Of last month contained a dispatch describing 90
length the blundering and disastrous management
of the financial affairs OF the Government by tho
Democracy between the year 1867 and the outbreak
of the Rebellion, showing by facts gathered from
their own official records that during that period
matters were gradually going from bad TO worse,
and that financial crisis would have been una
vodable if the Rebellion bad rot interviewed TO re-
licve that party frou further responsibility
An examination of the records in the Treasury
Department back to period many years irlier
than that described in the letter referred to dis
closed a state of affLrs which Americans who have
been enjoying the fruits Of Republican financial
management of public affairs during tho last
eighteen years. oonpreheuding G periods OF Tn"
greatest war and the greatest financial and indus
trial crises in our history will hnd it hard IL ap-
precae.
From the year 1897 to 1S4S the Government was
Giving from hand TO mouth" and probably could
not any single day of that period have closed up
its affairs with balance III It's Golfers The Presidents
and Secretaries of the Treasury seem to have had
little more knowledge OF the state Of affairs than that
to he gained by counting the cash on hand ana es-
mating the cry necessities of the Government; ana
Congress was besought every session Tor reflex
which it was as incompetent to devise as the EXecu-
five was TO administer It, 1t is charitable to suppose
that the mismanagement or want of foresight was
due chiefly to inexperience. The observant reader
cannot fail place the record in contrast with tho
brilliant record of the Treasury suthortirs during
the period which has elapsed since the close Of tue
Rebellion.
In the year 1886 the United States was for the
first time in the history of the country practically
ont of debt The Secretary Of thc Treasury. IN ms
report to Congress dated December ;, 1873, est'-
mated the amount of the public deot stili outstand-
ing at 1928, ,5S2 10, and this remained unpaid
solely because Its payment had not been deniahded'
ample funds to meet it having been deposited with
the Bank of the United States as commissioner Ok
loans during the preceding year. Al tile same tnie
the estimates Of the receipts and expenditures pre-
sented showed the probability Of a surplus IN tho
Treasury at the close of the year 1886 of at least
SI4 600, ,OOO and this estimate was really, 40
events showed, far below the truth
In this favorable of the publIc finances Con-
gress resolved to deposit all the surplus revenue
over 80 600 600 with the several States. and pro-
vi,ed the method by which 1t should be deposited
in four instalments under the act approved Jun'
%, 1886.
In 1887, howeveA the condition OF the country
had changed The flush" times of 1885 and
1886 had been succeeded by unprecedented depres-
sion aud panic. By the month of May most OF tho
banks had suspended specie payments. The re-
ceints from the sales of public lands and
duties on the large importations OF foreign
goods. which had helped to swell the
balance in the Treasury to over $42,OOOOOO.
had fallen off enormously. Even on the goods thar
were already imported it was exceedingly d,icuit
TO collect the duCes at all, the law required bem
TO be paid IN specie, aud specie was hard to Obtain
and It had not only become impossible To pay tns
fourh nstalment of the surplus AT the end OF s36
TO the several States but even to meet the current
expenses of the Government from Its ordinary rev.
enues. - ,,u
Secretary Woodbury. therefore suggested thai
contingent authority be given the President 20 ISSUE
Treasury notes bearing interest at SIX per cent.
hill for this purpose introduced III The iouse OF
REPRESENTATIVES September 49, which after
heightened debate passed that BODY, and passing
| the Senate became a law. The bill was supported
| ON several grounds. One was that the ISSUE
| of Treasury notes absolutely necessary
there being already deficit OF S2,O00O 900, which
uromised to largely increase should the then condi-
| ton OF the country continues aud another was thao
| so large an increase Of the circulating medium
would tend to alleviate the prevailing distress Tho
principle of the bill opposed however, by ihoss
1
would tend to relieve the Treasury, while others
| denounced il as an attempt - to start Treasury
| bank"
| The hill passed the House only by snail ma
;oritv hut IN the Senate there were only six votes
| AGAINST it: and it was approved October H. 1897.
Tho President was authorized to the issue Of
Treasury notes in such sums as the exgences of the
Government might demand mot to exceed in tho
aggregate $40 OOO,000), of various denominations.
| not less than $50, redeemable one year after
| date bearing interest from their respective
dates for the term of one year at rates
| m he fixed by the Secretary OF the Treas
urv. but not to exceed per cent They were
70 be issued in payment of debts due by the United
s,ates to such public creditors other persons as
chosa IN receive them payment at their par value
| were 10 be transferable by delivery and assignment
| ndorsed on them. and were TO he received IN pay
| meut of all duties and taxes laid by the United
states for all public lands sold by the SAID authority
and OF all debts 10 the United States; credit 10 bo
given for the interest due the notes at the time
of payment, The Secretary OF the Treasury was
authorized to borrow. the credit OF the notes. at
| not below par, such sums as the President might
| deem expedlent
| FURTHER RFLIEr DEMANDED.
The state of the country and of the public finances
WAS no more favorable at the close Of the year 1887
than it had been at its beginning. There was IN the
Treasury January l, 1888, an apparent balance ol
| over S34 900 900, but Of this amount the largest
portion was unavailable. 1t Consisted OF the amount
deposited with the several States, $2s, 6i4 "a
of money belonging to the Government deposited
with suspended OF insclvent banks; cf amounts du'
from merchants or bonds given for duties OIL
imports. difficult or impossible TO collect land of va
,ious other items aggregating, so large an amount
| that the Secretary of the treasury estimated the
available balance at the close OF the year az onl!
slIls.3 1893. 1t is probable that even this estimat
or,ss in NAV. 1888. that the available means in tn
Treasury amounted to about S2l6,00O. with larg
demands suspended in the Departments avail
ing payment from appropriations yet