New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-05-05

teaching
REDUCING TIE PUBLIC DEBT.
Since the close of the war Republican Ad-
ministrations have made the monthly state
ments of the public debt almost Invariably
creditable TO the country and encouraging to
the people. Mr.. Gladstone did not speak with
out reason. when he called the attention OF
the British people TO the fact that the United
States was the only nation that had for years
been continually reducing its debt In good
times or bad, this good work has gone on
almost without ceasing. Nor has the payment
been effected in such manner as to impose
severe burdens upon the people A body OF
indebtedness amounting to many hundred
millions, rs large as the entire national debt OF
most of the great nations has been extinguished
entirely, and yet the burdens have been almost
imperceptible, and the growth Of the country
in wealth and industry has at no time been
stunted. The payment Of debt in April, 1881,
amounted to $1,000, 900, and this reduction
has been exceeded in April only three times
since the war. Since the fiscal year began the
reduction in tlie public debt has been
$7s,099,OO1.
Remarkable changes will appear in May, and
have in fact begun, of whichthe official statement
gives no sign. Though it is known that part
Of the six per cents were extended, and VIZ
tualy converted into three and half per cents,
priorto May I, thcreisno change in thedebt state
ment as toamouut of six per cents outstanding
over $40, 600, 600 Of these bonds, according TO
telegraphic reports, have already been stamped
for extension at the new rate, and the amount
which will remain outstanding at the old rate
when the next statement appears VIII promo
bly, he very small. The amount OF hve per
cents remaining is Sl5G,022,9jO and OF these
about SlG,OOO,OOO have been called and are
now being paid. There will remain ahont
SIIO, O0O 600 10 be extended at 3i2 per cent
if the Secretary finds reason to take that
course.
The available cash balance, including the
bullion fund, has been slightly increased
since April I. from Si51,9SG273 69 TO
sl54Gio.G0s -. The payments now being
made will reduce that balance during the cur
rent month, but the Treasury also holds
so 1924 for redemption of National bank
notes, of which the greater part will ie un-
called for q considerable time. The cash IN
hand consists of Sl70,319,75i 53 in gold
SIS lO2. OBJ 80 in silver S22,927096 33 IN
legal tenders, and $5,s29,959 81 IN National
bank notes. besides deposits in National banks
exchanges and minor coin.
The unplcasant feature Of the monthly re-
turn ia that the gold reserve has diminished
and the silver reserve increased IN Ike meas
ure. Deductng the gold certificates not held
bv the Treasury. the amount of gold coin and
bullion owned il SfGi,3JS,jji %. and II Is
smaller by $3.50, 7OS - than on the LIST Of
April. Il is a suggestive coincidence that
the amount of silver held, not covered 10y
certificates outstanding, is just @3,2l2'o0o 70
larqcr than il was April 1. In effect the
Treasury has paid out during the month about
5000, 600 in gold, which il needs to main
tain its credit, in the purchase Of like amount
of silver, which il cannot force any creditor to
take without breaking its credit The silver
coinage during the month has been S2'3OO'ooO
and not a dollar Of that amount has been
taken into circulation by the people. On the
contrary, sos, SOS more silver dollars, which
were previously in circulation, have been
emptied into the Treasury through payment OF
duties. Inasmuch ~ these duties must have
been paid in gold if not IN silver, the Treas
ury has virtually been obliged to buy silver
dollars with gold But the ease Is still worse
The silver i'm the Treasury is in part covered
by certificates outstanding which circulate as
money. But the amount Of such certificates
outstanding has also decreased during the
month by about $4,000 50 that the Treas
ur, has also received these certificates for
duties. in place of gold.
0It must be evident, even 90 the most san
guue advocate OF silver coinage, that this
arrangement docs not work well for the Gov
eminent mt present. The danger is that the
entire specie reserve of the Treasury may in
time come 10 be composed of silver only nor
can this bc prevented by any possibility if the
! Treasury continues To buy and coin silver
largely while receiving 10 through the Custom
House in place of gold. The gold coinage
during the month amounted 10 Se,933,OO0
and yet the gold coin in the Treasury de
creased S12,O22. 100 fl, so that nearly
S2I 600, 900 of gold coin was paid ont during
the month, mainly for bullion received AT the
Assay Office. The amount of bullion ON hand
was larger than ever before, S97 80, 500, and
notwithstanding the large coinage increased
during the month s., 673, G9G. But the Treas
ury cannot long afford to continue increasing
its pile of useless silver. which amounts al
ready TO more than SS,i0O,00O.
Is De Lcsseps dcociving the French public abont
the lsthmus Canal An reports from Panama agree
IL ia. Ill.