New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-10-19
THE TREASURY AND MONEY.

The financial policy OF the Government Tor
some months to come can he quite surely an
ticipated. II does not depend so much as
many persons suppose upon the selection of
Mr.. Windows successor. In fact, the necessi
ties of the case define the policy which must
be pursued within narrow limits, and no Sec
Rotary of the Treasury can greatly change IT.
The surplus revenues have been fully ex-
pended to date, and no Secretary Is likely to
be selected who will think of trcnching upon
the reserve. From the surplus for the next
two months, the Treasury has already bound
itself to pay about $l3 100000 III redemption
of called bonds not yet presented for redemp
ton. At this season of the year, the surplus
NAV not be much greater than this sum, and
in that case the Treasury viii only restore
to the market December 24, or earlier
the sum which It may take from
the market in revenues. If, however, the
surplus revenue should exceed about So, 100000
per month, as it has done recently there will
be a balance to be- expended in the purchase
of other bonds, and such purchases are likely
to be made, by prudent Secretary, only after
the excess of revenue over required cxpcndi
lures has been actually realized
Hence the margin for the exercise of official
discretion is comparatively narrow. To men
of sense, it is hardly necessary to suggest that
no Secretary of the Treasury is going to pay
public debt out of his own pocket; nor can
any Secretary change the laws SO as to insure
a larger revenue; nor will any prudent Secre-
tary deplete the fund held for the redemption of
legal tender notes. II is possible for Secretary
of the Treasury to determine whether he will offer
to take, at any time prior to December "a, a
part or the whole of the bonds called for
that date. But the offers received on Monday
were but slightly in excess of the amount in
vited, which indicates that there may not be
great amount of called bonds remaining in
such hands that they would be presented be-
fore the maturity OF the call. Several millions
Of them, in any case, probably will not be
presented until the call expires. AS to this
matter, therefore, the discretion Of the Secre-
tary will only affect the time of discussing
sum probably less than $1O,00O,00O And
as to all other disbursements, they will depend
upon the amounts first taken from the market
by taxation.
Since the situation is such that, in any event,
the market will be compelled to take care of
itself this fall without much further influence
from the Treasury, it is fortunate that there
seems to be a fair supply of money at pres
ent, and that rates are now comparative
ly easy. The heavy disbursements of Mon
day have placed the money market be-
yond the reach of actual want for the pres
ent. But it must not be forgotten that either
OF several contingencies might at any time
cause strngency. Heavy speculation in stocks,
continuance of the speculation III grain,
monetary disturbance in Europe, or an advance
of rates by the Bank of England so far IA to
cause the return of many American securities,
might quickly exhaust the supply of money
now available. 1t is noted already that for
eign house in this city has been selling United
States bonds for two or three days, to the ex-
tent of several millions though it is claimed
that the bonds thus sold we're not recently
imported RumOrs of trouble in Paris yester-
day showed how sensitive the market was to
such influences. Judicious bankers, having in
mind the necessities of legitimate trade and
industry at this season. viii perceive the i'm