Sacramento daily record-union., 1888-09-01
THE SURPLUS SCARE.

We print elsewhere a statement mad
public by the banking house of Harvey
Fisk Il Sons, New York, a firm than which
no other is better informed concerning tn,
finances of the nation, since it has for year
had a large business with the Government
in the disposal and redemption of bonds
1t will be seen that the statement com
pletely disposes of the surplus cry anc
dissipates utterly the fears that the Demo
cratic administration has so industriously
fostered-for political purposes-that We
are pilling up an immense amount o.
treasure for which we have no uses, and
that it represents hard earnings of the
people wrung from them by taxation that
is unnecessary.
1t will be remembered by our readers
that the President not only did not obey
the order of Congress and apply the sur
plus money in the treasury to the pur,
chase of bonds, but claimed that the au-
thority to do so had expired, whereupon
Congress, but recently, by resolution inter-
preted the law for his benefit and declared
that it remained in force and ought to be
executed. Since that time, as will be seen
by the showing of Fisk g. Sons, there have
been redemptions in large amounts, which
should have been made long prior. 1t
needs no special financial intelligence to
fathom the purpose of the neglect to obey
the law. So long as the treasure could be
kept IN the national vaults, the hollow
political cry of "a surplus" could be kept
up, to fortify the demand for reformation
of the tariff revenue system according to
the Democratic plan, and thus give mo-
mentum to the candidacy of the head of
the Democratic ticket.
According to the Fisk exposition of the
state of the Treasury the July report of
the Treasurer of the United States showed
the surplus to be, including fractional sill
yer coin, Sl32,517,751 55. In addition he
had on hand on the Slst of July last other
sums held for specific purposes amounting
to S249,4l2,9S5 q, or total of $732,775,-
527 76. Against this sum had been is
sued gold, silver and legal tender certif-
Gates amounting to $350,S44791. This
taken from the aggregate given would
leave 1881, ,930,736 rs. From this must,
of course, be taken the sums dedicated to
specific uses, such as meeting accrued in
terest on bonds, the greenback reserve of
100000 coo, redemption Of notes of COL
lapsed National Banks, etc, etc, and
amounting, as stated, to over $249, 100000.
The remainder represents the exact sur
plus, or the figures first given-S132, 2,517,-
75l SIS.
Such is the showing of the Treasurer of
the United States, and it is this exhibit
that the Messrs. Fisk analyze and criticise
They show that on the date the exhibit
was made the Government had outstand-
ing over 81, 100000 of interest-bearing
debt, on over one thousand million of which
We are paying interest at from four to six
per cent. per annum. Why, then, is the
natural inquiry, should we have a surplus
over and above the specific funds devoted
for specific purposes, as stated? Under
She law the Secretary of the Treasury has
ample power to buy in these interest-bear-
ing evidences of the Indebtedness of the
nation, and thus stop the interest leak. 1t
is with national finances much as with the
private purse, that the rental one pays for
the debt is the chief obstacle to the re-
moval of the debt itself Certainly having
been by Congress specifically authorized,
and in manner TO make it practically
mandate to buy in these bonds to the ex-
tent Of the surplus, what possible reason
could the Administration give for failure
10 do so?
1t gave no reason worthy the name; it
simply replied last spring, when arraigned
for its negligence that the authority re-
ferred to was not continuing. Congress
taking different view, declared the
power of the Treasury to diminish the
national libility to the extent of the sur
plus still existed. Whereupon, unable to
make excuse for any further negligence,
the Secretary N April last began to apply
the surplus 10 reduction of the accumu-
lating interest Since that date he has
UP to August 2lst purchased with the
NsurpIus" sSS,6O1, ,15O fours and four
and,a-haIfs. This has effected saving to
the people Of interest payments in excess
OF S12,C00,aoe, even after making full
allowance or 4li premiums paid to induce
surrender.
The Mess,e Fisk assert that with the
surplus now On hand tue Treasury Depart
ment can save, if SO disposed, S40,COO,000
more of interest payments, and thus re-
move the menace of the so-cailed "great
perilD to he business interests of the
country. rhe ;aw requires that whenever
the surplrs s.eeds the S100,000,000 re-
serve -eq,..-5 80 be held against the
preenhaci.a. il shall be used to decrease the
sletrt by purchase of bonds at the market
price. TIE surplus is now Sl32, 100000
in excess oi he greenback reserve. Tn