The daily gazette., 1881-03-26
FINANCIAL PROBLEMS.
TREASURY PROJECTS AND RUMoRs-A
PLAN FOR PURCHASING $3.50 ,0O0, ,0OC
OF PER CENT. BONDS.

| TREASURY PROJECTS AND RUMORs-A
| PLAN FOR PURCHASING $3.50 ,0O0O
OF PER CENT. BONDS.
| There has been great deal of specu-
lation as to what course the Secretary of
the Treasury will take TO provide for the
| payment OF bonds which become redeem
able in May and July in case an extra
session OF Congress is not called for the
purpose OF passing Funding bill. Upon
this subject the officers of The Treasury
Departments and the Senators who would
be NEST likely 10 be consulted have been
extremely reticent, and no statement re
garding the var.oas plans considered has
been authorized. A special despatch
from Washington TO the New York Trib-
une says:-
Within the past twenty-four hours a
rumDr has been in circulation to The
effect that the Secretary of the Treasury
has, among other projects, considered
the plan of using money in the Treasury
! to buy, before the 1st Of next December,
$50, ,OOO, 900 of 9 per cent. bonds. IL has
also been asserted that this plan EN-.
braces the idea that it will be practicable
to avoid the necessity of issuing the
$104, ,000, 900 OF per cent. bonds. There
is some reason TO believe that a project
like that above outlined has been taken
into consideration, but nothing is known
regarding the probability that ii will bs
adopted.
III the Statement of Liabilities and
Assets of the Treasury" Issued on the
lst instant, there were embraced cei-
tain Items not belonging to the Treas
urer's general account, and amounting
| that daV n ahnnf GO
amount was considerably larger thai,
the usual liability on account of the
several items, because the fund for th.
redemption Of notes of national banks
"tailed," Gin liquidation" and "reduc-
ing circulation" had been suddenly
swelled from about 500 900 900 to near.
ly $37 100000 by the retire. ent OF bank
circulation on account of the threat con.
tanned in the fifth section of the Fund
Ing bill. Among the other items max.
ing up the $83 100000 mentioned were
the following Post Once Department
account, $2,414,92T +; discussing officers
balances, $1S,966, ,l22; undistributsu
assets, failed national banks, S476, 1907 ;
per cent fund remption national bank
notes, 14,0S9, ,424; Treasurer's transfer
checks and drafts outstanding, 50, ,27I,- :
. also included in the $50, 100000.
1t has always been the practice of the
, Treasury to keep on hand 100 per cent.
! Of these liabilities, all OF which are sub.
ject to payment on demand but there
4 IS no law requiri ng this to be done, and
' an examination of the "mouthly state.
i ments" shows that the balances on ae
I count of the several items which make
up this class OF liabilities have no. tallel
. below S65 100000 at any time during
I the last thirteen months. 1t is reported
4 70 have been suggested to The mind
! of Secretary Window, therefore, thaI
there Is no need of keeping in the
Treasury constantly enough money tc
pay all these liabilities, but that a re.
serve Of 40 per cent. (the same amount
held against outstanding grsenbacks,
n would be sufficient to meet all probable
4 current demands apon the Treasury on
account of the Liabilities mentioned.
r IL this suggestion should be- adopted
e and the monthly or daily balances Of
5, these various amounts Do established al
. so5,OOO, the Secretary would be able 10
II obtain from this source $50, 900 900 with
which to buy per cents. Iuciuded In
the IreAsurers general account are item.
10 amounting 10 about $4,000, 900, which
II also preserve nearly uniform balance
and agar nst which 1t has been the prac.
~ tce OF the Treasury to hold a reserve ot
II 100 per cent. If 40 per cent reserv,
should be considered sufficient to NEE
III all probable current demands upon thu
= balance, the secretary might derly,
o from this source an additional sum o
~ 81 100000, with which to purchase
per cents. This would make S46 0O0, ,O0U
IA An officer of the Treasury sald TO- day
in reply to question by Tribune cor
+; respondent, that at liberal estima ate ID,
,r surplus revenues from this time to De
oember will amount TO So 100000 ,
~ month or $4,000 900, for the min,
q taonths. This sum, added to that befor,
:, mentioned, would make an aggregate o
- ll8, ,000, 900, which would be available 70
the purchase OF bonds. This wuult
leave S32, 900 900 of the $50, 600, 900 frs
ot mentioned unprovided for.
Secretary Sherman always insiste,
very strsDuously that to maintain conf
er dence in resumption a reserve equal 4
10 40 per cent OF the outstanding legal ten
% ders should be kept in the Treasury.-
III This requires Sl33 10000. The monthl
kt balance for the last thirteen months ha
always exceeded S140 900 900, ami ha
~ sometimes exceeded SI50,0O0,000 o.
he lsl inst. IT was a little more tha