New-York tribune., 1881-08-31
THE TREASURY AND MONEY

1t was reported on Monday that Secretary
Window was about to call in 500, 200, 600 of
the recently extended 3l2 per cents. This re-
port, though contrary TO information given by
THE TRIBUNE, was by some believed. The fact
that the Treasury is accumuating IA very large
surplus, and at a time when such withdrawal
of funds from the market is likely to cause in
convenience, seems to bc the only basis for the
report that this method had been chosen to
lessen that surplus. But the report was at least
premature, and there is no evidence that the
Secretary has yet reached any decision on the
subject.
1t is the fact, however, that the excess of
| revenues over expenditures is reducing the
public debt at a rate almost uncXampIed. The
probable decrease of debt less cash, for the
month of August, is said to he at least
$l7OOO,OOO. Unless by payment of bonds,
the Treasury has no means of getting rid of this
| surplus. The bonds called for August -
originally about 100000 in amount. stay
out SC obstinately that only about $4,000, 900
| are said to have been redeemed The regis
tered bonds, of which about $2S 800, 900 were
said to be outstanding and not extended Au-
gust l, have for one week been invited by
proposal to pay interest on them up to October
l, whenever they are surrendered, and yet
only $3.50, 700 of them have been received
for redemption According to these state
mentS, the entire disbursements of the Treas
uTy for bonds redeemed during the month
have been only about 1913, 100000, and yet
the excess of receipts over other disbursements
for the month is said to have been about
S3 ,5O0,O 900 greater. In other words, though it
was expected that the Treasury would pay out
largely III August of money accumulated in
July, the actual result is that the Treasury has
withdrawn from tie money market in August
| about S3, 100000 more than it has dsburscd
during the month.
OF course, no blame can attach to the Secrc-
tary of the Treasury for this result Indeed, his
| measures to prevent the operations of the
Treasury from causing an unhealthy strngency
in the money market have by some spectators
and their friends been severely criticised Yet
the result proves that he acted none too soon
for, had S1O,OOO,0OO more, taken from the
market by collection of taxes, been retained
from 1t by refusal of the Secretary to invite
more rapid surrender of bonds, it is now evil
dent that the consequences would have been
very serious. The effect upon legitimate bus-
ness of all kinds would have been even more
severe than the effect upon the market for Sc
curities, which the speculative fra ternity con-
slider almost exclusively. In short, the order
| of last week undoubtedly prevented grave
disturbance, and possibly great disaster
Having wisely done much to prevent mischief,
the Secretary is still called upon to consider
whether other steps to the same end may not be
necessary before long.
The country is not in q position to stand u
further withdrawal of $17,OOO,0OO a month
from its available funds. If the revenues of the
Treasury are likely to continue as large as they
recently have been--and there is no reason now
to suppose that they will nOt--the reserves in
the Treasury will be materially increa sed dur
ing September at the expense of the money
market The heavy shipments of specie from
| abroad, though not yet wholly arrested by the
advance of rates by the Bank of England and
| the Continental banks, may not mprobably
decrease for a time until there is apprehension
of serious pressure in the money market here.
The deliveries of bonds, which have naturally
been large during the week following the
Secretary's latest ORDER rapidly declining.
On the first day, over $3,000,000 were re-
ceived; the next day about 50 900, 900; and
since that time there has been a rapid decrease,
SO that only S240,O 900 were received yesterday,
and only so, 5iO,7 700 up to the close of business
last night. The remaining SIS, 200, 900 will
come in slowly.
Secretary Window is undoubtedly wise in
refusing to take any immediate action in the
matter AT present, the money market needs
no further supplies. Over $1,000, 900 III gold
arrived by the Britannia, and other large re-
ceipts from abroad will come this week, while
the disbursements on account of bonds redeemed
have not yet been fully felt The payments
here last week were 81, 100000; on Monday
about $500,000, and yesterday 81 ,13S ,OOO so
that very large amount has yet to come For
some time to come, the money market will be
fully supplied, unless there should be some un-
usually powerful speculative arrangement to
depletc it. Greater supplies of money, at pres
ent, would only tend to dry up the flow from
Europe by depressing the rate of interest. here.
But time is coming when it may be important
Tor the Secretary to avoid an unnatural and un-
necessary accumulation of money in the Treas
ury. Then no dOubt he NAV consider Gov;