New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-10-05
THE pUBLIC DEBT AND FINANCES.


The decrease in public debt less cash on
hand, during the past month, has been
S14sO5, 949. In the three months, of the new
fiscal year the decrease has been SID, 794,23S,
which is at the rate of nearly $1S0,0O0 600 in
n veal At this rate one year more Will extn-
guish all the old five per cents, for there are
now outstanding only $177,O62, 900 of these
bonds. continued at 3l2 per cent. The continued
skies have all been exchanged for three per
cents. except $3698, 200, upon which interest
ceased at the maturity of the last call. The
amount of three per cents returned as having
been already issued in exchange for continued
six and five per cents is 1927 ,233,2 200, and the
decrease in interest bearing debt during the
last month was over 81 100000.
No calls of any amount will now mature until
December %, when the interest will cease on
bonds of the last call for $25,000,0O0. Some
of. these bonds have been surrendered already
under the proposition to prepay interest to
December %, but it is a general and natural
impression that, inasmuch as week has
elapsed since the offer was made and less than
So, 900 900 of the whole amount has in that
time been turned in, the amount surrendered
during the rest of this month will not be very
large. Hence it is that the Secretary of the
Treasury is said to be considering the pro-
priety of buying bonds.
The assets in the Treasury, however, have
not so increased during the past month as to
Justify very large purchases. There has been
an increase of $3,519,7S6 in the gold owned
by the Treasury, it is true, but there has also
beer a decrease of So, &C., 1872 in the amount
of legal-tenders owned. Inasmuch as the
whole an cunt of such notes held, in excess of
legal tender certificates is only $2l, 1901
while the Treasury owes $3S, 800, 600 to the
fund for redemption of notes OF banks reducing
or in liquidation, and nearly $l6,O00,000
more to the banks for per cent fund and
undistributed assets, it is evident that part of
the increase of gold held really belongs to
these trust funds held for the banks. For its
own uses, therefore, the Treasury holds only
1859, 900 more gold than it did September L.
But much worse feature OF the case is that
it has issued during the past month, and now
has outstanding, about $4,000, 600 more silver
certificates, against which its increase of silver
held has been only $l,100,000. Hence the
Treasury actually has on hand less assets than
at the beginning of the month. And the silver
certificates, as all experience has shown, come
back into the Treasury only through the
Custom House, where they are taken in place
of and therefore virtually redeemed in gold.
In reality the Treasury has on hand SS59,0OO
more gold, but has outstanding S5,50O,0OO
more notes redeemable in gold than it had a
month ago. Under these circumstances, its
purchases of bonds cannot well be very heavy.
The new gold certificates will be issued to-
day, however, and it is the general opinion that
the demand for these will quickly place the
Treasury in possession of several millions
of additional gold. 1t is well to notice, there
fore, that these certificates not to be distrib-
buted gratuitOusly. They will take from the
banks gold for every one that may be issued,
so that, il the Treasury should then proceed
10 use the gold thus received in the purchase
of bonds, it would not have the gold On hand
for redemption of the certificates. But tho
trouble is that the outstanding silver certif-
Gates will become OF less use, IA soon rs the
gold certificates can DO had and will therefore
20 back to the Treasury more rapidly. Every
payment of 81 900, 900 in these certificates. in
asmuch as it lessons by that amount the gold
which would otherwise DO paid to the Treasury
for duties, will virtually take that sum in gold
from the Treasury. There are now
&c., 100000 OF the silver certificates outstand-
ing, and If the payment of these to the Treasury
equals the demand for gold certificates, the
Treasury WIN gain no gold by the operation,