National Republican., 1882-12-05

ana II IS not certain event that II VIII ever make
Itself whole again, and to the extent OF some part
of the premium, IL extinguishes no debt,
II is doubtless good policy to extlnguish the long
bonds Of the government, rather than those pay.
able at its pleasure, for the time is at hand when
with the present rate of receipts and the present
rate of payment of tue public debt, all the bonds
been called In. Then, II there be surplus in the
Treasury, there will be no outlet for IT save by
purchase at large premium of long bonds, or
the disbursement of 1t through appropriations
for purposes beyond the ordinary and economi-
cal needs of the government. II is therefore for
Congress to consider the propriety of empowering
this department to buy the long bonds at high
premium. If 1t shall deem 1t polite to make gen
eral purchases of bonds at such premium for ex-
tinguishment, II should by law give to this de-
parnnent express authority so TO do, and thus
adopt that policy.
There have been other suggestions of modes of
freeing the Treasury of all excess of assets. The
national bank act, section 80 UNITED States Re-
vsed Statutes, sec. 5l3S), provides for the desig
nation of national banks as depositaries Of public
moneys, security being taken in corresponding
deposit of United States bonds. All moneys re-
ceived for customs must be paid into the Treas
ury, and no part of them can be placed In ma
tional bank depostarles. 1t is seen that II they,
orapy part of them, were deposited with national
bank depositares, they would soon find their way
back into the currents of business in loans and
discounts, as do now the receipts from internal
revenue taxation.
There are in the Treasury over $50, 900 Oo0 being
the D per cent. fund for the redemption OF ma
tional. bank notes, and the fund for the redemp.
ton of notes of national banks that have failed.
ment as public moneys" within the intent Of the
sections above cited. and have been kept in the
Treasury. 1fCongress should give an interpreta:
tiOn to the words public moneys" which would
take in these funds and they be put on deposit
with the public depositaries, the same results
would follow as are above suggested as to customs
receipts.
1t is argued by those who contend for larger use
of the banks as depositaries that all other
the United States in the relations between their
treasures and the money market; that their gov
ernmenis keep their accounts with the strongest
banks III the country, and in this natural way of
transactng business they do not deprive their
trade of the natural and necessary services of
floating capital that 1t is only in the United States
that the government, chiefly by law, and partly
for want of the use OF existing discretionary pow
ers deliberately dsturbS the natural currents of
money, intlicting upon trade prolonged or spas
modic stringency by locking up its receipts, or
stimulating speculation by sudden outpouring of
It's hoard that all business is taxed by this system
of legal caprice and that it is probably exagger
counts in New York city to average two per cent.
higher than under the more natural system of
employing the ordinary business agencies for
the governments collections and disbursements.
do not yield TO this reasoning to the full ex;
tent that 1t is sought to push it, 1t may be well
10 give the department the power TO make larger
deposits in the public depositaries l conceive
that the receipts from customs, now to great ex.
bs 10 m yh
another course there are disadvantages that might
come to both government and people, and which
o.
either 1t is safe to say that the country is never
SO sure of continued course Of prosperity ns that
prudent forecast will not take heed of possible
financial disturbance and disaster. 1fsuch should
come in such magnitude as that the national
bank depositaries should be involved in common
with ALL it would be of the greatest good that the
government had in its own hands the means to
meet the daily calls upon 1t. 1t has chanced that,
sngly national bank depositaries have failed to
its embarrassment Greatly more SO would it
be If all or many. should SO fail together,
and together should have in keeping, in main,
the assets of the government. The policy of the
department has been to keep for the redemption
of the United States notes reserve of about 40 per
cent. OF the amount OF them outstanding, and, be-
sides that to hold money enough TO meet all other
obligations payable OH demand. 1t Is part OF
that policy that the Treasury should itself hold
and, being ready for the evil day. the evil day al:
most never comes; not being ready for the evil
day, it is certain to come" For these reasons
would not seek release Of the Treasury from this
complication in these modes.
The radical cure for the evil is in
more will be taken from the people than enough
to carry on the government with economy; &c
meet ali its obligations that must be met from yeai
TO year, to pay of with reasonable Gelerty the par
provide through the sinking fund for the payment
Of that which will become, payable by and by
The evil comes from the Likelihood of the govern.
ment holding from time to time large surplus to
be poured out in volume at uncertain and unfor.
seen times and at times often inopportune for the
surplus surely not so great one, If the subjects
taxation were lessened and the rates made smaller
upon those retained.
estimated surplus of public moneys for the fiscal
year ending June 80, fSS9 upon the basis OF exist
Ing laws and including the sinking fund, OF
S75,5T7, ,0i3.75.
Unless some disturbing cause comes in, not now
foreseen, that surplus will increase from year to
For without such cause the revenues from all
sources will not be diminished If the laws pro-
ductive thereof remain unchanged: As so great
an annual surplus Is the direct result ofthe exist
ing revenue laws, what will be the financial con-
dition of the county II these laws remain un-
changed and taxation be not reduced?
mind the increasing expenditure for pensions, as
likely to affect In some degree the increase OF
The Commissioner of Pensions has furnished
to this department an estimate based upon facts
on his records which give these figures:
Number of claims filed to June 80.
1882. ...................... S17,72-
Number admitted .;.:;...........,.. 472516
Number on rejected files......"... 75,26s
Number ending..................- 269,67S
- S17,722
OF the number pending 197,62S are entitled to
"arrears," and the first payment in the same
compiled from dis discharge M or death to date, would
The remaining 72,O55 were filed subsequent to
June 80, 1880. and pension, when allowed
would commence from the date of filing
Last year he estimated that the average value on
the LIST day of January 1884 Of each claim allowed
ont of the class in which are the 1877 ,623 above,
would be 81 $50. and he then reckoned that about
five -sixths of that class would be found valid
claims and would be allowed.
The amount of United States bonds which are
now due and payable at the pleasure Of the gov
ernment are Us follows:
Fiyes continued at 31a per cent..... $685. 1856 $50
Threes. 25937O, 800
Total. Observation-Disclosures. Ala. $50
Those which next become redeemable
which
paid sepember l, 1891. $3.50 900, 900
Lastly, the per cents, redeemable July
To which viii add the reminding certii. ''H''0''
Gates. ..............,........... 42s,75O
Making. ........................... 739353 ,S5O
The amount of the funded debt redeemable at
any time before September ], 1891, which will re-
main unpaid OH the 30th OF June, 1883, Is about
100000 000 and upon the foregoing estimates for
the fiscal year ending June 80, 1SS3 the whole
funded deDt now redeemable could be paid before
June 80 1886. This would leave as the surplus for
more than five years the amount of 5000, 600,
undsposed of in the Treasury, unless. yielding TO
the temptation of seeming wealth. ex penditures
be largely increased. The amount of the loan re-
been stated, no other loan becomes redeemabe
until 1907 so that tue surplusunder the conditions
supposed will rapidly increase until that date. The
amount of the loan Of 1907, as already appears is
less than S740 0O0 000 that, were 1t ull redeem
able the whole public debt could be paid from a
surplus as great as estimated early in the fiscal
il has not oflen occurred in public financial
history that embarrassment has arisen through
superabundance of revenues. The condition OF
the country in that respectwhile 1t illustrates IL
almost boundless resources, and establishes itS
credit beyond question, presents difficulties oi
grave character.
The accumulation in the Treasury of large
surplus, which must occur unless immediate
measures are enacted for q reduction of the