Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1881-03-31

notes. Now the silver balance in
the treasury is growing, and for some
time to come probably will grow. 1t
amounts to $84,OOO,OO0 already. 1t
is perfectly well known that this sum
is entirely unavailable for the re
demption of notes OF bonds, If the
government means to maintain q de-
cent credit. Hence the amount of
available reserve is not now so large,
nor likely to be SO large, that it can
be loosely depleted with safety. Elk
animation will doubtless lead the
President and secretary to act with
great caution in that direction.
The power to receive temporary
loan deposits, conferred by the act
of June 80, 1864, was obviously
given for very different purpose
from any now in hand. Yet the
temporary loan was not authorized
for any purpose expressly named,
and the power then granted has not
been recalled by Congress. It is a
mistake to say that special reserve
of S50,OO0,OO0 in legal tenders must
be held at all times against the tens
porary loan Of $150,000,OO0, for the
act provides that "the Secretary Of
the Treasury may issue and shall hold
in reserve for the payment of such
deposits United States notes not
exceeding $50,000,O0O," the obvious
meaning being that the extra issue
of notes, if made at all, shall be held
for that especial purpose. Other
wise the act provides for the receipt,
''by any of the assistant treasurers of
the United States OF depositaries
designated for the purpose other
than national banking associations, .
of deposits of not less than $50 each,
for which certificates shall be issued
sin such form as the Secretary of the
Treasury shall prescribe" These GER
tifcates may bear interest at 6 per
cent. or less, and the amount is lin,
tied to $150,0O0,000. Possibly that
amount Of 3 per cent. certificates
might now be sold to the holders OF
small savings, and might in part
serve the purpose of the per cent.
notes which Secretary Sherman
recommended. Whether the act in
question gives power to make the
temporary loan for the present pur-
pose the Administration will proba~
bly, soon decide If so, S15O,OO0,O0C
can undoubtedly be borrowed, either
at 3 or 81 per cent.
With this sum, and the surplus
revenue for nine months, estimated
at 100000, all the 6 pei cents
can undoubtedly be retired without
depicting the reserve or selling 4 pei
cent. bonds. In that case, it is 6
question whether anything should
be added to the thirty~year debt fo1
the purpose Of cutting down the in
terest on the per cents. without
without waiting until next winter
The utmost loss by delay would bt
only six months difference in inter,
est On about $4,000, O00-perhaps
100000. Sales Of 4 per cents
would reduce the principal of the
debt, and might be made at sucl
rate that the loan would cost the
government not more than 81 PEI
cent. But the part Of the debt nov
remaining which it is possible tt
pay off within twenty-six years
without the assent of creditors, il
now only about $9O0,OO0,0OO, ani
that amount should be paid in tif.
teen years at most. If 1 per cents
are sold, they run for thirty years
and place a larger part of the deb
beyond the reach of the people after
about ten years from this date.