American citizen., 1881-11-12
Report OF the United States Treasurer.

WASHINGTON. November q.
The report of United States Treasurer
Gifillan for the fiscal year ended June -,
1881, shows an increase in the receipts over
those for 1880 from every source. increase
IN customs, Sl1 ,631 GIL; internal revenue,
$11 Pa. oil, sale of public lands. $l,1S5, ,3j6;
miscellaneous sources, So, I02; total in
crease, $2T, $50, 6S1, which, added TO the net
reduction of $6,33o,07U in expenditures,
makes an increase in the surplus revenue OF
$34, 1S5, Isl.
The net revenues were 1850, 7s2, ,292. and
the net expenditures, S2G0, Tl2, SS1. The ex
cess of the receipts over payments was
$100, ,069, ,4O4, of which 500, 81. 251 was ex-
pended in the redemption of the publie
debt.
The balance in the Treasury increased
$1S. 667, COS from 1908, 791 1921 at the begin
ming to $252. .45S ,925 at the end of the fiscal
year. The amount expended on account OF
interest and premium on the public debt
ran down from S9S, o12, S)5 in 1856 to SS3,
569, $50, reduction of S14,9S2,905. The
balance standing to the credit OF disbursing
officers and agents of the United States With
various officers Of the Treasury, June 30,
1881, was S24, ,936,301.
The receipts for the fiscal year on account
of the Post-office Department was $39. 157.-
664. and the expenditures, S3S, ,544 $50, OF
which amounts IA, 102. 703 were received
and expended directly by Postmasters.
The unavailable funds in the Treasury
amount to S29, ,521 632, an increase since the
last report, by reason Of taking up certain
items previously carried in cash. At the
close of the year there e.was held by the Treas
urer in United States bonds, 1860. .JiJ, 800
as security for the circulation Of National
banks, and S15, 29o, 800 as security for pubic
deposits in National Bank deposit,ries.
During the year 1916, ,S99, 700 in bonds WAS
deposi'ed for these purposes, and S2H,527,-
$50 Withdrawn, exceeding by far the trans
actions Of any former year.
The amount Of United States currency
| outstanding at the close of the year was 1862
539, 43l redeemed during the year, s11 ,069, :
974. Total redemptiOns since first issue Of
| currency, 81, 30J, 141 ,0I3
United States bonds amounting to SS5,
| 8O4 $50 have been retired during the year.
| The aggregate retired by purchase, redemp-
| tion, conversion and exchange, from March
| IL, 1863, to the close of the fiscal year, was
slss3.344, $50. Coupons from United
states bonds OF the value Of So, 737, 667 were
paid during the year, and quarterly interest
| on registered stock Of funded loans, amount
ing to IA 455, $50, was paid by means of 3J5,-
| lO5 checks.
National Bank notes received for redemp-
fion during the year, s59, }, 25a. The ag.
gregatetredenptions, under act Of June 20,
1874, has been ST ,099, ,634, ,772.
| Comparing the condition OF the Treasury
September 30, 1881, with the 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. De-
| ducting gold certificates actually outstand-
| ing, the gold belonging to the Government
September 30, the last four years, was s1l2,-
6l2 ,622 in 1873, 1854 1857 ,371 In 1879, SI2S, =
16u, ,Os5 in 1880, and $iG9, So, 746 in 1851.
| The gross amount Of gold and silver coin
| and bullion held by The Treasury, without
| regard to obligations outstanding against it,
ranged from $lG3, 969, ,444 in 1878 to S222, :
! in 10 2l2 - in nd
| $2G9, 7V6, ,99S in 1881. The increase last Year
was 100, 40 900. of which S39, 150, 900 was in
gold, and SIG, 25o, 900 in silver. The increase
| in gold was greater and in silver less last
year than any year since the coinage Of tho
standard silver dollar began.
| The United States notes on hand slightly
| increased last year, notwithstanding the
urgent public demand for notes notes for % eireula.
amount required for payment of clearing
house certificates is So, J,0OO, 900 against $lS,
o00, 900 year ago.
The practice the past year has been to
make 10 per cent of all payments In silver
dollars or certificates, 40 per cent. in
gold coin and 81 per cent. in notes. To
| this rule there Is one important exception. {.
| Under an arrangement between the Treas
ury and the New York Clearing House all
| payments by the Treasury to this institu-
tion, aggregating S275, ,ooo, 200 q year, must
| be made In GOLD coin or United States notes,
standard silver dollars not being receivable
| under its rules, although silver certificates
are now being paid 1t by the Treasury t1
seme extent in large denonfin ations, in lieu
| of gold 6oi1, for.us in payment OF csstom
| dues. Aside from any personal vfews as te
the expediency of revfving the silver dollar,
| the Treasurer says II would seem unwise for
| any branch OF the Government to encourage
| an arrangement by which coin, which the
law has made full legal tender. is discred-
tied.
| The gross assets of the Government, in.
cluding funds held for redemption Of gold,
silver and currency certificates, are 1881 =
9SI 210, having increased more than a64, ,oOo, =
600 las, year, ,and being larger than on the cor
| responding date in any year since 1878. The
| increase is due in chief part to deposits on
| account of silver certificates, which amount
ed to $45, ,6OO, 900.
In referring to the reserve held for the re-
| demption of United States notes the Treas :
urer says: "There is NO provision in the law
| requiring specie reserve for redemption Of
United States notes. In the preparation
| for the resumption OF specie payments q
| fund was created in the Treasury, ,uader sec
tion 8. Resumption act of 1875, by the sale
of $95, 500 600 in bonds, and the accumula-
tion of surplus revenue to protect outstand-
ing notes. The amount q this fund has
never been definitely fixed, but it has been
| maintained at about 40 per cent. Of United
| States notes outstanding.
| ssIt has usually been assumed that q reserve
of 40 per cent. Is sufficient for the protection
of United States notes, but under the
method Of computation the reserve is not
merely 40 per cent. Of liability represented
| by United States notes, but also 100 per
cent. of all other liabilities. So Tar as gold !,
| silver and clearing house certificates are
concerned, 1t IL necessary, under the laws
| authorizing their issue, that their full
amount should be set aside in gold, silver
and United States notes, respectively, as
funds for their redemption. but as to the
| other liabilities there is no such obligation
| as this, and it is submitted that no higher re-
| serve is required for their protection than is
required for the protection Of United States
notes. In the changed condition Of trade
and commerce. unless some calamity shall
overtake the Nation, there seems to be no
| probability of run upon the reserve Of the
| Treasury. The total demand for coin in the
| redemption of United States notes aggre-
gated since resumption but S12, ,O29 0S6, and
no notes whatever have been presented for
| redemption since February, 1881.
| "Should there ever be q run on the specie
reserves of the Treasury, United States notes
| will be made the basis of demand, and not
| the OF her mntured obligations, which COM
| the Government. The excess Of assets over
| demand for liabilities of the Government,
| other than United States notes, is shown by
| a tabulated statement to be $146, 443, 49I. .
| Treasurer says: "It is clear that what
ever percentage the reserve will protect,
| United States notes will protect the
other liabilities" The Treasurer does
percentage should be, but is of opinion
| that a uniform percentage should be fixed
| for AN current liabilities other than the
three classes of certificates, and the excess
| from time to time, ia the purchase or re-
demption of the public debt, according to
| some definite and publicly announced plan.
Should this be done the policy OF the De-
partment would cease to be subject TO
| speculation, and the influence of the Treasury
| IN he tn