The National tribune. [volume] (Washington, D.C.) 1877-1917, 1885-03-05
THE CONDITION OF THE TREASURY.

the silver question Mr.. Cleveland used Ian
guage which was calculated 70 create appre-
/ hension with reference to the financial con-
ditson OF the Treasury Department Hesays:
! Your solictude that my Judgment shall have
been carefully and deliberately formed Is entirely
Just sind acccptthe suggestion IN the same friendly
/ spirit in which it has been made II Is also fully
justified 10y the Of the financial crisis winch
under the operation Of the aga OF Congress OF Feo.
! Is ISIS, Is now close at hand.
Silver and silver certificates have displaced and
! are now dn-pIsciHg gold, aud the siam Of goii
IN the Federal Treasury available for the pay
| ment Of the gold obligations Of the United St'ie9
and Tor the redemption OF the United States notes
called Erceubscss. If not already eucrosched upon,
| Is peTilously near such cucroachmcut.
Now, the fact Is, that the Treasury Of the
United States to-day is in perfectly sound
and healthy condition. IN other words, 1t Is
in that state which may be described in
banking terms as "strong." There is to-day
in the Treasury net reserve above all pcs
sible liabilities of $154.500O00. This enor-
nous cash reserve is lying there idle, after
having subtracted every liability, vast
amount Of which is merely nominal. from the
fact that it never viii or can be presented for
payment within the range of human posi-
bilities. There is nearly 81 100000. for ex-
ample, of what is called the old debt, dating
back from the beginning Of the Government
aud including bonds and obligations put cut
| from time TO time, which have undoubtedly
been lost or destroyed and can never be
| presented for payment. There is a vast
amount of national securities known
TO have been destroyed in The great
fires Of Chicago, Boston, and other cities,
which cannot he produced for redemption.
There IS about S8,00200O worth Of fractional
currency stiu provided for as a liability on
the books of the Treasury, which has Ger
! taialy al been worn out or IS boarded by
curiosity seekers, and VIII never he sent in
for payment.
In point Of fact, instead of being weak,
the Treasury is So strong that were it con-
Quoted upon the principles which govern
conservative bankess, there are certainly 30
CT 10 millions of this reserve which might
safety be invested in Government bonds,
thereby saving the interest without leopard
izing the assets for the redemption of green
backs or gold certificates.
On the I'd of January, 1881, the Treasury
cash reserve above all liabilities was $50
100000 less than it is to-day, or only $l33,
100000. A year from that date, on Japuary
=, 1855. it Was almost the same, amounting to
1871. 100000. Since TIRE opening of the pres
enJ year there has been a constant increase
until it has reached, as stated above, Sl5t,-
| 50000 which includes gold, gEesnbacis,
and silver.
The net gold reserve in tee Treasury at
| this time, in excess OF outstanding certiG-
cafes amounts to SI27, 0O0,OG0 The lowest
point which the net gold reserve has reached
this year is $I23, 250,0 600. The net amount
of silver IN the Treasury, in excess of certi-
fcates outstanding, for which the coin is
held, equals S86,00o,00O.
The net amount Of notes or greenbacks has
increased since the beginning Of the year
from Sl1, 100000 10 S19GOO,0G0. TIE result
viii be seen, therefore, that not only has the
! total reserve increased since the beginning
Of the present year to an extent of over
$50 600 900, but that the gold itself has
formed an important part, so far as the
| present month at least is concerned, of this
steady growth of the national assets.
What makes the situation still more secure
| is the fact that the balance Of trade is at
| present and has been for some time in our
favor, so that there is at least no present
danger OF drain of gold from this country,
which is the condition of things that would
cause the effect that Mr.. Cleveland seems
to regard as imminent, and that even could
not happen until very large amount of
gold bullion had been exported.
The receipts at the Treasury Department
continue to be as large as usual, and there is
no indication OF diminished revenue. Upon
What, Therefore, the President can predicate
his predictions Of financial crisis close at
hand does not seem very apparent.
The correctness Of the policy of ultimately
suspending the silver coinage is not here
taken into calculation. We simply have
undertaken TO show that there is no iInmi-
nent danger Of panic from this cause
alone.