New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-09-05
SIXTEEN MILLIONS PAID.

SIXTEEN MILLIONS PAID.
The debt statement for September l shows
that the revenue in August has exceeded all
payments except for the principal OF the
debt by 1916, ,261 "a In. two months OF
the new fiscal year nearly $3O,0Oo,oOo OF
debt has been paid, Notwithstanding the large
disbursements involved by large and long
delayed appropriations. 1t is not to be expected
that the excess of revenue will continue at the
rate of 81 80, 100000 through the year, but 1t
is manifestly large enough to justify the
strongest censure of those Democratic leaders
who contrived to prevent any reduction OF
taxes mt the last session of Congress AT the
present rate nearly all the three and a nail
per cent bonds that have not been already
offered for exchange will be paid With
in little more than year, so that those
who make application for three per cents now,
and take late numbers, will hardly gain more
than n single year in the life of their securl-
ties. The exchange has been generally made
already. it is said by the banks that have
three and half per cents on deposit for cir
culation. ard the monthly statement of the
Controller gives the gratifying intelligence
that the bank circulation increased $1,7l5,49O
A
of circulation increased only S737,313. But 1t
cannot be expected that the circulation VIII
continue to increase when the opportunity OF
gaining time by obtaining three per cents has
passed From that time, rapid payment OF
debt will tend to accelerate surrender OF CIR
culation, especially if the Treasury continues
| to employ extraordinary means to put silver
| certificates into circulation.
The course of the Treasury in this respect Is
strongly criticised by The Financial Chronicle,
| which has not seemed until recently to COM
| prehcud fully the meaning and effect OF the ar
| roncemcnts for transfer of silver certificates.
| As has been repeatedly explained by us, the
| Secretary issues silver certificates to any de-
sired order from any Assistant Treasurer 5
Office at the West or South, upon deposit OF
money here. Banks wishing to make remit
tances are thus offered premium equal 10 the
whole cost and risk of shipments, provided
| they will consent to shove into circulation the
| least desirable and least desired form OF cur
rency The Treasury statement OF september
shows that this performance has succeeded
| in thrIsting into temporary use no less imam
| 50. 9S2.1GO of these certificates III excess
of the amount outstanding August L, al
though they have been coming back to the
| Treasury here in large amounts. The payments
for duties at New-YOrk i'll silver certificates
amounted to $7941, 900 in the month OF
| August. out of $16936,0OO received in all
| kinds of money. At the same time, the gold
certificates which the Secretary was ordered
| Inv Congress to issue are delayed in prepare
ton. so that it is now said they will not
he ready until October |, and The Financial
| Chronicle saws 1T almost looks as If this de
Law was part of the same scheme" to force
silver notes into circulation. But we cannot
conceive what the Secretary could expect to
| gain by any such scheme, either Ill further
ance of his aims as a candidate for Governor
or in any other way. Certainly the advocates
| of silver imitation are not supposed to have
control in this State. 1t is more liRely that
the arrangement has been made without full
understanding of the fact that it was virtually
placing premium upon the use of silver notes
| instead Of bank notes.
| The immediate effect, of course, has been to
| increase the gold reserve in the Treasury,
which is now $4,249,290 larger than it was
! August 1. Of necessity, the contrary effect
a very large and rapid depletion of the gold
reserve-wll come whenever the silver notes
are no longer desired in use. In effect the
Treasury is borrowing gold on notes payable
| after two or three months, or sooner If the
gold certificates are issued as the act OF Con-
gress provides. This can do no good, but may
do much harm when the silver certificates
come into the custom houses for redemption
faster than they 90 out, as they must before
| long.