New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-04-03
TIE NEW DEBT SETTLEMENT

The new form of debt statement which the
Secretary of the Treasury has issued VIII con-
vey no new information to those who have READ
THE TRIBUNE. The information which 1t gives
in regard to the condition OF the treasury,
with more of the same sort, has been from time
to time given in Analysing and commenting
upon statements previously published. But IL is
simply political revolution that such state
ment should be made on Democratic authority.
Not to 90 into details, which just now might
seem annoying to Democratic friends it is
enough to remark that few months ago,
during the Presidential campaign, scores OF
Democratic statesmen, great and small, includ-
ing conspicuously Mr.. Randall. were going up
and down in the land declaring that the
Treasury held surplus of more than
5000, 600, OOO which it ought Immediately to
employ in paying debts. But now the iirst debt
statemen. issued by Democratic Administra-
ton officially informs the world that the
Treasury has on hand surplus OF less than
$12,OO0,000.
To make the matter clear to all ordinary
readers, it is only necessary to remember that
in previous debt statements the interest due
and unpaid, the called bonds and other debts
on which interest has ceased. and the gold,
silver and legal-tender certificates, are deducted
from the total cash of all sorts held by the
Treasury, leaving, according to the statement
of March 1, q balance of $152.OOO,OOO, which
was called the "cash balance available"
Necessarily, as THE TRIBUNE has many times
pointed out, there was included in this bal
ance available" the fractional silver coin held
by the Treasury, the minor coin, and also
what are known to the Treasurer's books as
unavailable funds" Secretary Mannings first
statement makes a proper and sensible change
by emitting, as unavailable for reduction OF
debit the fractional coin. $50, 632 1876, and the
minor coin, $S76.O51. There can be no question
that this form of statement is in every respect
preferable to that which originated when the
amount of fractional silver held was insignih-
cant, and was mere balance liable to be used
from week to week. But, second the Secretary
makes another important change. Hitherto all
Secretaries of the Treasury have recognized the
obligation urising unicr tho pe.e,aptie" Aet tn
hold n certain amount of gold coin as resump-
ton fund. There has never been any question
permitted by Republican Secretaries as to the
sacredness of this obligation. Indeed, all have
urged that, in addition to this fund proper,
further amount Mr.. Sherman held about
$40 600. 900 in all. should be maintained as
resumption fund. This was question of
safety and prudence. But as question OF law
there can be no doubt that when the Treasury
was authorized to sell certain bonds in order To
prepare for the resumption OF specie payments
and did sell such bonds, obtaining nearly
800, 600. 900 in gold for them, 1T was bound 10
devote the gold thus procured to the purpose OF
maintaining specie resumption, and to no other
Use. Lest there should be any doubt about 1t,
in the Act of 1882, July II, it was expressly
provided that the issue of gold certificates
should be suspended whenever the amount OF
q gold coin and gold bullion in the Treasury
reserved for the redemption of United States
a notes falls below $10O,O00,000." III the
language of law can possibly be made explicit
enough to create special fund applicable to
one purpose and to no other this law creates
such fund to consist of gold coin and bullion
alone, never to fall below $780, 100000, and to
be sacredly preserved and maintained ex-
clusively for the redemption of the legal-tender
notes.
Secretary Manning, in the form OF debt
statement now adopted, recognizes this
as q definite and sacred obligation OF the
Treasury, and therefore formally deducts
it with other matured obligations from the
amount of cash on hand. Subtractlng
this sum and the $31 100000 of unavail-
able funds from the "cash balance available"
as it would have appeared in the old form, there
remains as a surplus only $22, 259,O25. But in
this reckoning the Secretary has not deducted,
as he should have done, the accrued interest not
vet due. In all debt statements, h therto Re
publican Secretaries have deducted this amount
also, as a private business man or firm would
do i'm seeking to ascertain its actual condition.
The amount of such interest accrued April was
$40, 362, 1896 IS. Corrected by the deduction
of this item, the balance in the Treasury
amounts to only $11, 396,629 SO.
Secretary Manning will receive great many
curses and kicks from his Democratic friends
on account of his distinct recognition lof the
sacred obligation of the Government. But he
has done wisely. Republican Administrations.
relying upon the support of Republican party,
have not found it necessary to be especially
emphatic in regard to any Part OF the National
obligations. A Democratic Administration
having to deal with Democratic House, may
well be extremely careful to present in the
strongest and most explicit manner those obll-
cations of the Government which cannot be
disregarded or neglected without dishonor
For they have to deal with party which, where
mjsconstruction or misunderstanding is posi-
BILE, will seek to debauch the currency and
undermine the public faith. Secretary Manning
shows that he understands his party, and
r IL x...I.I 70 Gatf