New-York tribune., 1884-03-25
.,rru vopk nAU W. TR JRTNE TUESDAY, MARCH 25 1884

other currency. But what difference oooe IL
make whether the silver notes or the bank notes
are in circulation In two respects the difference
"a important. The bank notes do not go into
the custom house instead OF gold, thereby
lessening the amount Of gold received. Inc
banks having notes in circulation have u more
direct and stronger interest in upholdlng inc
credit of the Government.
What does the Treasury take int The puD-
lished returns Of receipts for customs at New
York give an idea, and yet necessarily an I'M
perfect one. For it happens that the treasury
has been paying ont silver more largely at other
principal importing cities than at New fork'
and SO has thrust into channels OF circulation
there relatively larger proportion OF silver
which has found its only use in paying duties
Presumably, therefore, the ratio OF payments III
silver to total payments has been greater else
where than at New York, and if it has been in
creasing here 1t has presumably increased still
more at other points. From January 10 Mafch
l, inclusive the payment OF duties at New OK
amounted to $24,S69,631, OF which only
S5OS, 900 was In gold coin, S15, $4,000 IN gold
certificates, and $5,712,000 in silver certln-
Gates. Of the latter, the proportion in these nine
weeks was $50 per cent. But during the week
ending March 8 the proportion rose to 27.5
per cent. And during the week ending March
Is. out of 50, ,785, ,502 paid in duties no less
than 5000, 900 was in silver, or 32.6 per cent
Last week, with receipts of $1,5S2.74O, the
silver fell back to 100000, or 1913 per cent
about the average for the first two months, but
the later days Of the week showed large silver
receipts again.
This would prepare us to believe that the
Treasury had been falling behind in its gold
since March 1. The official statement OF bal
ances of different dates confirms this belief.
Since March 1, the decrease in amount OF gold
held by the Treasury on Saturday was
$S, ,865, ,5S3. In part compensation Tor this
excess of gold disbursements over gold receipts
the Treasury had taken in $1,212,99O more
gold certificates than it had put out, so that 1t
actually owned only 1852, ,593 less gold. In
like manner, it had paid out more legal tender
notes and certificates than it had taken In by
S413,265, virtually borrowing money on Its
notes to that amount to avoid immediate pay
ment of more gold. But, as the legal tenders
are redeemable in gold on demand, the Treasury
really owned $2,O65, ,S58 less gold on Saturday
than March l. On the other hand it held
S2.144. .563 more silver, and had outstanding
S3G7, 900 less silver notes. so that it owned
2,511, ,653 more silver, and $2,O65,S59 less
gold. Such was the change in three weeks.
So long as the substitution goes on gradually,
even though at this rapid rate, there Will be no
excitement But, in timo there will come an
alarm. Nobody can tell when or why; monetary
shvers of apprehension do not send notice OF
their coming. When one comes, tue banks that
have virtually retired circulation and lost in
tercst in the National system will be strongly
tempted to send in the legal tenders they hold
and the gold certificates, and to get gold for
them at once. If a few start such movement,
a state of alarm prevailing, the gold balance OF
the Treasury will vanish in a weeK. That is,
unless the Treasury refuses to pay gold on de-
mapd-and if it does, that is bankruptcy.
Nominally, the Treasury held $l45,OOO'oOO
@available for redemption of notes on Satur-
day. In reality, $66,4OO,O0O of this pro-
fcssedly savailable" money was silver not even
nominally covered by silver certificates out
standing. Out of $95,0000OO formally bor-
rowed for the specific purpose of forming re-
demptiOn fund to be sacredly held in gold, the
Treasury actually has in available gold only
S78 .6OO, 900, and has lost the Test. Moreover,
it is losing gold and substituting silver. as has
been seen, at the rate of $2,000,00O in three
weeks.