New-York tribune., 1881-09-12
PEFUNDING and THE STRpLrS

President Garfied's first question was
whether the work of relunding, to which he
had given so much of care and interest be-
fore his injury, had been completed. 1t must
have been peculiarly gratifying to him to learn.
and to Secretary Window to report that the
work was all finished, and magnfccnty sue
cessful. On Saturday $6,242, 600 of the
coupon and $14,714,350 of the registered five
per cents had been received at the Treasury
for payment, 1898, 600 of the coupon and
So, 492, 900 of the registered bonds having
been received during the week. At this rate
the redemption of the remaining called bonds
will go on ut a rate sufficient to afford an out
let for all surplus revenues this month,
and no Inconvenience will arise reur-
ing any modification of his course by the Sec
retary. BY the end of the month he will prob
ably be able to report to the President that he
has not only completed the refunding of
$5S0,O00,O 900 of bonds, but paid off from the
surplus revenue, without disturbing the re-
serves or the money market, all except about
$4,000, 900 of the bonds not extended. 1t is
not strange that the President has been anxious
to learn of the success of an under
taking so vast and so bold. No doubt
he realizes that this one achievement would be
enough to establish and perpetuate the fame
other thing of especial merit.
Ii there is a prospect that the President
can be safely consulted upon public affairs
within two or three weeks Secretary Window
will naturally defer any action in regard to
the disposition of his future surplus. For the es-
sential fact, which many persons seem disposed
to overlook, is that the Treasury will have a
large and growing surplus, so long as the rev.
enue laws remain what they are, and the busi-
ness of the country continues to prosper The
revenue will grow for three reasons: : Because
the business of the country will increase be-
cause refunding has reduced the sum payable
in interest on the public debt, and because
Star Route Investigations and other reforms
have enabled the Government to cut down its
expenses. The proper use of this surplus rev.
enue has nothing to do with the work of refund
ing, which, as we have seen, is practically
finished without involving any monetary dis
turbance. Precisely the same question would
have arisen had there been no bonds maturing
this year and no refunding necessary
1t is a mistaken idea, too that the Secretary
needs to come to some decision and make some
announcement Immediately, because he cannot
unlock his surplus until after a call has ex-
pired. The Secretary can purchase bonds in
open market at any moment, and it is not ne
cessary to give more than two days notice In
this respect, the advantage of this mode of dis
posing of surplus revenues is very great The
Secretary can use the money Immediately,
whenever a surplus appears, or its disbursement
seems important BY any other method, some
delay would be involved, since notice must be
given to the holders of bonds that can be called
in. 1t is true that the Secretary has power to
call bonds, announcing at the same time that
he will receive them at any time and will
pay interest to the maturity of the call. But
even when this is done, there can be no GER