New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-02-03
THE PUBLIC DEBT And THE SENATE.

GUDLIC
Two facts make the monthly debt statement
unusually interesting. Gold began to 50 TO
Europe on Wednesday. The Senate has voted
to spend in the redemption of bonds " all OF the
funds now held in the United States Treasury
in excess of 800, 100000"
The decrease of debt less cash in the Treas
ury. during the month of January, was
$12, 978, 1886. If such reduction can be
made in a single month without trenchlhS
upon the reserve for resumption purposes,
what possible excuse can there be for weak
ching that rescrve2 The decrease in debt was
S2O.2O3, 900 in interest-bearins bonds Gall ID
extended per cents, and $4,G1o,OG0 IN IN
terest due; but the bonds on which interest
has ceased were increased $2,391,74O, so that
the decrease in all forms Of debt, except GER
tificates, was So, 4G5,78S. On the other
hand, the cash not covered by certificates out
standing decreased $9,4S6,953 and part Of
the reported cash, also, was in certificates re-
ceivcd, of which the amount on hand had in
creased 81, 102, 900
What resources does the Treasury actually
hold, with which to protect its obligations due
on demandR 1t has on hand $l1,S6l, l69 VI
in bank deposits, but these apply against as
bursting officers balances and amount due the
Post Office, in all $27, ,737 26, and leave
balance due on salary and service account OF
S15.4O6, 5G8 %. Again, the Treasury holds
80. 4e4. 500 OF in various bonds and coupons
and in New-York and San Francisco exchange,
but owes for bonds and interest due and I'M
mcdatey payable 26,SO9,211 90 leaving m
medatcly due to bondholders 50 1924, All 81
1t has on hand $7377994 80 in bank notes
but owes to the banks, in trust funds held toI
the redemption of notes and the settlement Oh
accounts. $45,G72,318 IS, leaving balance
Immediately due to the banks of $3s, 1913 80.
Finally, the Treasury has on hand of legal
tenders not covered by certificates of deposit
a17.384,394 46, but it has outstanding or
notes payable on demand S3l6,67l'O1o' IeaN-
inc due 1929, 29G,G 81 to holders of notes.
Adding these balances, we find that the treas
ury owes on demand $407,321, 924 y, and 1t
has on hand in gold, in excess of the gold Ger
tilicates outstanding, only $159,912,56o 90, OF
barely 1872 per cent Of its demand obligations.
What else has the Treasury with which to
meet its debts ? Not legal-tenders; those on
hand are merely evidences OF debt pad. Not
hank notes; those on hand have been de-
Quoted from the sum due banks. Not eX-
change. or deposits, or bonds held these
have also been deducted. 1t has or hand
lot of silver.
On the lst, the Treasury held, of all silver,
SIO2,24S,383 50. But part OF this was IN
bullion, part in fractional silver coin, and OF
the S72.421,5S4 in silver dollars, $61,537,54
was covered by silver certificates outstanding,
and not included in the demand debts. De
Quoting these the Government really has on
hand besides its gold, only $1O,0S4Ol4 In
Iegal-tender silver, and even that small
sum 1t could not use for the payment
of salaries, banks, interest or principal OF
bonds, or the redemption of notes, with
out destroying its credit Practically
the whole of the silver held, and about
$4O2, 773 81 in minor coin and fractional cur
rency, is absolutely useless for the protection
of the public credit. But this large sum
SIO2, 65l, 157 Spin unavailable funds, forms
part Of that balance in the Treasury Of which,
according to the vOres of Senator'S all but
500, GOO, coo must at once be expended. Do
these Senators, then, desire to leave the Gov
eminent without any available funds whatever
for the redemption of its notes. Or DO they
intend that the Government shall become
bankrupt, unless a reserve of $ll, 100000 I'M
available silver, and $59,C0O,OOO gold which
is being drawn out at the rate of $7,OOO,OOO
in a single month, will suffice to maintain its
notes at parl
1t may be charitably supposed that some do
not. The necessary inference, however, IS
that they did not know what they were voting
for, and that inference, though charitable, Is
not highly complimentary. Certain it IS that
some of the Senators did know what they
were voting fer, and distinctly intend to leave
the Government bankrupt if they can. They
have been unceasing, indefatigabe, fertile and
ingenious in efforts in that direction ever
since Confederate rebellion was suppressed
by the credit and resources of the United
States. And it is a melancholy sight to see
4 few members, who were elected and trusted
bv loval and Republican constituencies, agree
ing and consOrting with these Weu-khoWn ana
inveterate repudiatOrs
1t will be said, OF course, that the Govern
ment will not be restrained, under the vote OF
the Senate, from holding silver only against
the SOL. 537, 900 silver certificates outstanding
But the fact is that the Government is obliged
to redeem these virtually in gold as fast as
they may be presented at the Custom House,
for. when received, they discharge debt to
the Government which would otherwise be
paid in gold or its equivalent. In January
S1.1O2, 900 of these certificates were thus re-
deemed, and the Treasury received 50 much
less gold for the payment of interest on Its
bonds In addition, it was compelled to buy
silver and to coin $4,000 silver dollars, and
vet the stock of silver dollars lying idle IN
the Treasury increased 50, s31, CAT during the
month. Moreover, $GO4,23l 80 in fractional
currency came in, which the Treasury cannot
use. No wonder, then, that its stock of gold
was reduced during the month $7lG4,G7S rs.
IN "a +,.l-o many sucb months TO arouse