New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-12-04
FACTS ABOUT TIE TREASURY.

Next week We shall have the Presidents
view of the financial situation. But the data
are known as fully now as they will be after
the Message and the Secrctary's report have
been published. An unofficial and common
sense view of the situation may perhaps prepare
for better understanding Of the Presidents
recommendations. 1t may be the more needful
because the President will probably affirm that
the Treasury holds $1OO,OO0,OOO in gold Tor
the redemption Of leeal-tender notes. and Is by
law REQUIRED to hold that sum. In reality IL
has spent a large part Of the money, or else OF
trust funds in rcdeemng three per cent bonds
and making money less stringent during the last
political campaign
.Julv ] the Treasury reported outstanding
SI44 O46, 600 Of the three per cent bonds
December 1 il reported outstanding only
S71.15425O. Whence did it get about
S73. 900, 600 for redemption Of bonds In hve
months The revenues have been large, but
since July / have amounted In all to
Sl52. O6O. 1872 go, and the ordinary expendi-
lures. the payments for pensions and for in
terest. have amounted to $125.917.S3495 30.
Thus the surplus available for debt payment
has been only 5000. 900 for the five months.
Where did the Treasury get the remainder OF
the sum required Part Of it came from de-
posts for the redemption OF bank notes held
by the people, The amount in this trust fund
July was Sol 100000. and it has increased
December l to $S8. 491,2 71. But the cash OF
all kinds in the Treasury has scarcely increased
at all. 1t follows that the money added to the
trust fund must have been paid out. or else
the bullion fund must have been paid out. for
the redemption of bonds This may have been
exactly the right thing to do lei that be sepa-
rately considered. Just now, it is important
to know precisely what has been done.
The Treasury reported November 80 that
SlOO,OOO,OOO are held as "reserve for redemp-
ton of United States notes. acts OF 1879 and
1882" II will hardly be claimed that this
consists of legal tenders, the very notes to be
redeemed it could not consist of deposits of
banks for the use of discussing officers in pay
ment of salaries; and it could not have con-
sisted of silver, unless the law requiring the
Treasury to hold gold has been disrcgardcd.
The gold held, not on deposit for gold GER
i6catcs, amounts to $l63. 93O,22O 81, but &C
cording to the debt statement over 1OOOOOO
was held for called bonds and interest unpaid.
That would leave $l43OO0OOO in gold, and
he two trust funds for redemption of bank
| notes amounted 10 poi,OOO,OOO' iOi""P' ''iN
bank noe redemption fund may have been In
legal tenders but deductng all The legal ten
| ,lors in the Treasury. not covered 10y certlii-
Gates, the remaining trust fund is $67 100000
How can this sum be taken from $l43,OOO,OOO
| gold, and still leave $lOO,OOO.OOO in the bull
| ion fund 7
The fact is that the Treasury has spent the
| cash deposited for redemption of notes about as
fast as it was received. The cash account
shows only $1,1OO,OOO more gold. silver and
legal tenders, above certificates outstanding,
| in the Treasury December 1 than July l, so
that the increase of deposits has not been kept
| in the Treasury. But the amount will have
to be paid as fast as the bank notes come in for
redemption Then the money thus virtually
borrowed must como out of the sum now re-
| ported as bullion fund. unless the Treasury can
| use silver dollars or silver certificates. The
calculation is that it will be able to put out and
keep out enough additional silver certificates
to cover the bank notes that are to be re-
deemed. IL that works, and the silver dollars
and certificates do not como back into the
Treasury faster than they 60 out, the gold re-
serve can be made good. If not, the repayment
of the trust funds must take gold which is now
reported as being part Of the bullion fund.- II
is well to get this clearly in mind. before the
| recommendations of the President and Secre-
tary arrive because the official statement ig-
norcs the trust funds as being no part OF the
public debt, whereas they are getting to be an
important part.