Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-11-04
WASHINGTON GOSSIP.
FIGURES FROM ANNUAL REPORT OF
TREASURER GILFILLAN.
Formidable Facts in Relation to Our FL
nancIal Condition-W What Has Been Done
and is Yet to be Done-The President
Gone-Notes on the Navy. Etc.

WASHINGTON, Nov S.-Ths report o
United States Treasurer Gilnllan for the flsca
year ended June 80, 1881, shows an increase II
receipts over those for 1880, from eve ~
source. Increase in customs. $11, ,6S7 OIL
internal revenue, $11 oil; sales of public
lands, S1,1S5,356; miscellaneous sources
So, ,7O2; total increase, S27, ,S55 ,6S1
which added to the net reduction of $6,930,
OT0 IN expenditures makes the increase In the
surplus revenue $S4, ,165,75l net. Revenues
712, $780, Excess of receipts over payments
800, ,O69, ,404, of which 800, ST., ,26l
was expended in redemption of the public
debt The balance In the treasury increased
$4S, ,667 6OS from $203, ,79l 1921 at the beginning
to S252, ASS, ,925 at the end Of the fiscal year.
The amount expended on account of interest
and premium on the public debt ran down
from $9S,552, ,S97 in 1880 to SS3, ,569, $3.50; re-
duction, $l4, ,9s2 ,905; balance standing to
and agents, as with various officers of the
treasury, June 80, 1881, was s24 ,s36, ,S07. Re-
ceipts for the fiscal year on account of the
postofice department., s39,757 1854, and ex-
penditures $3S,544, 1886, of which amounts
S24, ,7O2, ,703 were received and expended directly
by the postmasters. Unavailable funds
Of the treasury, $29, 1921 ,632, the In
crease since last report by reason Of
taking up certain items previously carried in
cash. At the close of the year there was held
by the treasurer, in United States bonds, $780,
banks, and SIS ,295, 800 as security for public
deposits in national bank repositories. Dur
ing the year S276, ,S99,700 in United States
bonds were deposited for these purposes, and
$277 ,527 $40 withdrawn, exceeding by far the
transactions of any former year.
United States bonds amounting to SS5, ,SO4, =.
$50 were retired during the year. The aggre-
gate retired by purchase, redemption, conver-
sion and exchange, from March II, 1859, to the
close of the fiscal year, was 81 1888, ,344, 800.
Coupons from United States bonds of the
the year, and the quarterly interest
in registered stock of the funded loans
amounting to s44, ,455,790 was paid by means
of 3O5, los checks. National bank notes re-.
ceived for redemption during the year $780,.
650,259; aggregate redemptions under act
of June 20, 1874, have been 81, ,099, ,634;772.
Comparing condition of the treasury SeptS0,
with its 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.
ing gold belonging to the government Sep
tember 80, last four years, was $112, ,602, ,622,
in 1878; $l54, 1887 ,37l in 1879; $12s, ,Os5 in
1880, and $169, ,552, ,546 in 1881. The gross
amounts of gold and silver coin and bullion
held by the treasury without regard to obli-
cations outstanding against it, ranges from
$l63 1869 444 in 1878 to S22, ,SO7 1868 in 1879, to
1914 ,sO3,2l5 in 1880, and $769, 9,706.99S in
1881; increase last year, ss5, 400, ,ooo,
of which $39,15O.OOO was gold and SIG ,25O, 600
silver The increase in gold was greater and
in silver less last year than any year since thu
coinage of standard silver dollars began.
AS notes in hand slightly increased last year,
urgent public. demand for
notes for circulation. Amount on
hand above amount required for payment of
clearing house certificates $2O,0OO,0 900, against
$4,000, 900 year ago. The practice OF the
past year has been to make 10 per cent. of the
payments in silver dollars or certificates, 40
per cent. in gold coin and so per cent. in notes.
To this rule there is one important
exception. Under an arrangement between
the treasury and New York clearing house, all
payments by the treasury to this institution,
aggregating $274 ,000, 900 year, must be made
in gold coin or United States notes, standard
silver dollars not being receivable under it's
rules, although silver certificates are now be-
ing paid it by the treasury to the same
extent in large denomination in lieu of gold
coin for use in payment of customs due.
Aside from any personal veiws as to the eXpe-
dency of revivipg the silver dollar, the treas
urer says it would seem uuwise for any branch
of the government 10 encourage an arrange;
ment by which coiu which the law has made
full legal tender Is discredited.
Gross assets OF the government tincluding
funds held for redemption of gold, silver and
currency certificates 1881 1881 ,2lO, having in
creased more than $64 100000 last year, and
larger than on the corresponding date in any
year since 1878. The increase is due in
chief part to deposits on account
of silver certificates, which amounts to S45,.
100000. In referring to the reserve held for
redemption of United States notes the treas.
urer says: There is no provision of law re-
quiring specie reserve for redemption of
United States notes in proportion for resump-
ton of specie payments. The fund was crea-
ted in the treasury under section three Of the
resumption act of 1875, by the sale
of S95,500,000 bonds and accumulation
of surplus revenue to protect outstanding
notes. The amount of this fund has never
been definitely fixed, but it has been main
tanned at about 40 per cent, as notes outstand-
ing. 1t has usually been assumed that the
reserve of 40 per cent. is sufficient to protect
notes; but under this method of computation
the reserve is not merely 40 per cent of the
liability represented by United States notes,
but also 100 per cent of all other liabilities.
So far as gold, silver and c.ea1ing house Ger
.tificates are concerned, it is necessary, under
laws authorizing their issue that their
full amount be set aside in gold, silver
and United States notes respectively
in funds for their redemption, but as to other
liabilities no such obligation as this exists,
and it is submitted that no higher reserve is
fo, klns sr
for the protection Of United States notes.
In the changed condition o. trade and CON-
merce, unless some calamity should overtake
the nation there seems to be no probability of a
run on the reserve of the treasury. The total
demand for coin in redemption of United
States notes aggregated since resumption but
$12, ,029, ,0S6, and no notes whatever have been
presented for redemption since February, 1881.
Should there ever be a run on the specie
reserves of the treasury, United States notes
will be made the basis OF the demand, and not
other matured obligations which compose
the very varied current liabilities of the gov.
ernment. The excess of assets over demand
liabilities of the government other than
United States notes is shown by tabulated
statement to be $l46, AZ, ,491. Considering
these liabilities as a whole, the treasurer
says it is. clear that whatever
the percentage reserve will protect United
States notes, or Will project other Iid-
bilities, the treasurer does not attempt to say
what this percentage should be but is of the
opinion that uniform percentage should be
fixed for all current liabilities, other than
three classes of certificates. and that the ex.
cess of cash in the treasury should be expend
ed from time to time in purchase or redemp.
ton of the public debt according to some
definite and publicly announced plan. Should
this be done the policy Of the department,
would cease to be subject of speculation and
the influence of the treasury on the money
market would be reduced to the minimum
During the last two years there has
been A steady increase in outstand
ing notes of the denominations o.
so and under, and proportionate decrease IL
notes of higher denominations, zoos alon,
excepted. The total amount Of standard silve
dollars coined to September 80, 1881, under tn,
act of February %, 1878, ia sos, ,S22, ,705, o
which nearly 81 per cent. is in circulation ani
the remainder in the treasury. Amount coinet
L. - ~ rrh;n