The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1881-11-10
Treasurer t3rlallan,s Report
WAsHINoruN. Noyemhr 4

Treasurer 6il6llan's Report
WASHINGTON. Novembe Z
The report of United States Trcturer
0ilfilian for the fiscal year ended jus 30,
1851, shows an increase In the recsiptiov
those for 1880 from every source. Intease
In customs, $11, 49,, GIL; internal reNnue,
$l1, 255 .Ol1t sale Of public lands, $1,18, $50;
miscellaneous sources. $3,177, 702; tohl in.
crease; $27, 205, 6s1, which, added to tie net
reduction OF $6,93O,O7O in expenditures,
makes an increase in the surplus revenue Of
$a4, Isl, 751. sfksF EE
Tie net reventtes were $3.50, 1872 ,291 and
the net expenditures, 1880. II, 1887. Tie ex-
cess Of the receipts over payment was
$780, 69, 4A, of which $0o,s72. PSI wa ex.
pended in the redemption Of the public
debt.
The balance In the Treasury increased
SIS, 667 1903 from $2O3, 791, 321 at the begin.
ming to $3.50. 45S,925 ut the end of the fiscal
year. The am0untexpended on acca,nt of
interest and premium on the pubIi, debt
ran down from S9S, 552, S95 In 1880 to $S3.
PSI, $50, . reduction of ia, yS2,9O The
balance standing to the credit Of d:sblrsing
officers and agents Of the United Sta,e with
0Ua
1881, was ~, 936, 1907.
The receipts for the fiscal year on account
OF the Post -Officc Department was SIS, 757,.
664. and the expenditures, $6S,544 935, Of
which amounts SA,702. 703 were received
and expended directly by Postmasters.
The unavailable funds in the Treasury
amount to ~, 521 ,682, an increase since the
last report, by reason Of taking up certain
items previously carried in cash. At the
close of the year there was held by the Treas.
tlrer in United States bonds, 1850. BD5. 800
% security for the circulation of National
banks. and $l5, 29o, 800 as security fOrpubiic
deposits in National Bank repositories.
During the year S216, 500, 7OO in bonls was
deposit ed for these purposes, and $2:7 ,527,-
actions OF any former year.
The amount OF United States currency
outstanding at the close of the year was 1862.
b0. 437; redeemed during the year, ST. ,O69, i.
ga. Total redemptions since first issue Of
currency, -, 800, l41,O73
United States bonds amounting to $S5,
8C4, $50 have been retired during the year.
The aggregate retired by purchase, redemp.
ton, conversion and exchange, from March
IL, 1869, to the close of the fiscal year, was
u. 9S3 ,344, $40. Coupons from United
States bonds Of the value of SO, 797, 667 were
paid during the year, and quarterly interest
on registered stock Of funded loans, amount.
Ing to IA, 4j5, 100, was paid by means Of 3J5, :
1O5 checks.
National Bank notes received for redemp.
ton during the year, S59, 65l $50. The ag.
gregate redemptiOns, under act Of June ~.
1874. has been $l,O99, ,772.
Comparing the condition of the Treasury
september 81, 1881, with the condition the
same day last year, the most striking
changes are the increase in gold coin and
bullion and standard silver dollars ON hand,
and in silver certificates outstanding. De.
Quoting gold certificates actually outstand.
Ing, the gold belonging to the Government
September 30, the last four years, was SIP.
l2,622 in 1878, 1854 ,9S7,37l in 1879, $l2S, /.
l6O,OS5 in 1880, and $l69, 552, TAG in 1851.
The gross amount Of gold and silver coin
regard to obligations outstanding against it,
ranged from 1858, 969, Az in 1878 to $222, .
SO7 1868 in 1879, to $2l4, 3U3, 2l5 in 1880, and
$3.50, 7O6, 99S in 1881. The increase last year
was $55, 100000. of which S39, l5O, 700 was in
gold, and SIG, $50, 900 in silver. The increase
In gold was greater and in silver less last
year than any year since the Coinage OF the
standard silver dollar began.
The United States notes on hand slightly
increased last year, Notwithstanding the
urgent public demand for notes for circula.
ton. The amount on hand above the
amount required for payment of clearing.
house certificates is 81, OOO, O0O against $1S, !.
1900 year ago.
The practice the past year has been to
make 10 per cent. Of all payments In silver
dollars Or certificates, ~ per cent. In
gold coin aud 50 per cent. In notes. To
this rule there is one important exception.
Under an arrangement between the Treas.
ury and the New York Clearing House all
payments by the Treasury to this institu.
tion, aggregating $275,0OU,OO0 a year, must
be made in goll coin or United States notes,
I'll Ill 0~>S.~ 4
under its rules. although silver certificates
are now being paid it by the Treasury to
some extent in large denominations, in lieu
OF gold coin, for use In payment Of custom
dues. Aside from any personal views AZ to
the expediency of reviving the silver dollar,
the Treasurer says 1t would seem unwise for
any branch Of the Government to encourage
an arrangement by which coin, which the
law has made full legal tender, Is discred.
tied.
The gross assets of the Government, in.
Guiding funds held for redemption Of gold,
silver and currency certificates, are 1881 =.
9Sl ,21O, having increased more than S., co.,.
OOU las, year, land being larger than on the cor.
responding date in any year since 1878. The
increase is due in chief part to deposits on
account Of silver certificates, which amount.
ed to SAG, COZ, 600.
In referring to the reserve held for the re-.
demption of United States notes, the Treas.
urer says: "There is no provision in the law
requiring specie reserve for redemption of
for the resumption OF specie payments .
fund was created in the Treasury, under sec.
tion 3. Resumption act of 1875, by the sale
of $95, SOC, 900 in bonds, and the accumula.
ton of surplus revenue to protect 0utstand.
ing notes. The amount Of this fund has
never been definitely fixed, but it has been
maintained at about 40 per cent. Of United
States notes outstanding.
''It has usually been assumed that reserve
of 40 per cent. is sufficient for the protection
Of United States notes, but under the
method Of computation the reserve is not
merely 40 per cent. of liability represented
BY United States notes, but also 100 per
cent. of all other liabilities. So far as gold,
silver and clearinghouse certificates are
concerned, it is necessary, under the laws
authorizing their issue, that their full
amour, should be set aside In gold, silver
and United States notes, respectively, as
funds for their redemption, but rs to tho
other liabilities there Is no such obligation
as this, and it is submitted that no higher re-
serve Is required for their protection than is
required for the protection of United States
notes. In the changed condition Of trade
and commerce, unless some calamity shall
overtake the Nation, there seems to be no
probability Of . run upon the reserve OF the
Treasury. The total demand for coin in the
redemption Of United States notes aggre.
gated since resumption but SIP, 029, 0S6, and
no notes whatever have been presented for
redemption since February, 1881.
"Should there ever be run on the specie
reserves of the Treasury, United States notes
will be made the basis Of demand, and not
the other matlired obligations, which COM
pose the very varied current liabilities Of
the Government. The excess Of assets over
demand for liabilities Of the Government,
other than United States notes, is shown BY
q tabuIated statement to be STAG, 443, 49I. -
Considering these liabilities IS q whole, the
Treasurer says: ut is clear that what
ever percentage the reserve will protect,
United States notes will protect the
other liabilities. The Treasurer does
mot attempt to say what this
percentage should be, but IL of opinion
that uniform percentage should be fixed
for all current liabilities other than the
three classes Of certificates, and the excess
Of cash in the Treasury should be expended,
from time to time, in the purchase or re-
demption Of the public debt, according t.
some definite and publicly announced plan.
Should this be done the policy Of the De-
partment would cease TO be subject ia
speculation, and the influence of the Treasury
on the money market would he reduced ia
. minimum. During the last two years
there has been steady increase in out
standing notes of denominations of ~ and
under, and a prop0rtionate decrease in notes
of higher denominations, hundreds alone