The sun., 1883-10-31
THE TREASURY SURPLUS.
MILLIONS POURING IN AND USED TT
REDUCE THE DEBL


-Comptrolier knos's Fears for the Nation.
al Banking system-Enect OF Bond Cnlis.
WASHINGTON, Oct 30.--No accurate state
ment can be made rs yet Of the effect upon the
revenues that tho reduction of taxation OF last
winter will cnuse. Still 1t is plain to tho Treas.
ury Department that there will be n large sur.
plus notwithstanding that reduction. Tho re.
ceipts for the first quarter of this fiscal year
were in round numbers ninety-throe million
dollars. while for the corresponding three
months OF last year the Treasury received one
hundred and thirteen millions. The expendi-
lures this year were seventy EIGHT millions for
tho same period. while last year they were
eighty Millions The surplus. therefore. for
this first quarter was about fifteen millions.
while last year 1t was thirty three millions. II
this ratio OF receipts to expenditures be kept
up during the year. the surplus will
amount to about sixty millions. as against
one hundred and forty-fye millions last
the surplus for this year will be larger than
the, above figures Indicate, and it is certain
been been doing Notvithstsnains the redactiSn y
bonds lie has nothing else to do. Each month
tho figures are brought M to to him, They N show f,1
the Treasnry. Il IS ali plain sailing for him.
He has already called sixty millions of bonds
this fiscal sea. year All the three anG halls are
thirty millions. with possibility Of increase
wiped out at this prodigious rate by the Secre-
up stairs the sqdx
officer is Comptroller Knox. the guardian and
| This rapid wiping out OF tho debt. he fears is
cutting away AZ too rapidly the foundations Of
cent. bonds that Secretary FolEer has called.
the banks hold nearly twelve millions. which
s"ye rot to do Of wa @ m%ss
either give up so much much OF the circulation as is
latter step is almost impracticable: TO take
the former means n contraction of the cur
ten TENN millions Nor is this ihe worst Of it. These
bond calls. according to the present light. must
presents itself. in tho Immediate future. OF a
| very large contraction OF the currency. due to
much M W greater sums than are needed ior tho ex. Y
penses Of the Government COMPTROLLER Knox
banks be allowed to deposit foreiGn bonds ITO to
secure their circulation.
While the national banks may be somewhat
great apprehension at tho Treasury Of such a
contraction Of the currency as would imperil
Silver and gold certificates for the past year
show an increase over tho year before Of more
standing a decrease in United States notes
and Of national bank notes Of more than thirty
|
has any. idea that business need alarm itself
1t is clear that something must be done
right away to help the banks. Comp.
troller Knox expects to make some rec
ommendation, to Congress so does Secre'
tary FolGer; but neither has ANYTHING more
The present condition Of affairs is due larGel,
to short-sighted legislation. Three years agc
: | this coming winter. a Democratic Congress
PASSED a law that had this very CONTINGENCY !,
ing Of the tives and skies into n three per cent
a | bond that had ton years to run. with the op
. ton Of twenty, The bill was bitterly fought b.
Rebublic leans in both Houses. Bankers protest
pointed to the measure as n specimen Of Demo
cratic financial legislation. Lending Demo
Gratis In both Houses protested that the mea
sure was one that protected tho national bank
ten years; 1t was asserted by the opponents {
n the bill that tho bonds could not be refunde
!. at three and 1t was charged good MANY time
G that the measure was Democratic nj
Il tack on the national king system. Blu
h the bill passed. and and passed as Demoerati
J. John Sherman. vetoed it. What was the result
e In six months Secretary Window. by n YER
!. strained exercise OF authority. to say the leas
g refunded the bonds at three and n half. an
. and in the opinion Of good flnanciers the Who'll
( could easily have been refunded at n less rat
II there had been any time limit. But tn
Government now has the option to call them
enormous revenues. that even the huge reGu
lar and pension appropriation bills cannC
equal and the banks find u problem stnrin
). them in the face that Republican leadershi
n asserted would not be at hand for ten years.
TWAS in the canvass of 1880 that it was s
&" strenuously urged that business interests wcr
g safest with the Government in the hands Of th
Republicans.