Semi-weekly south Kentuckian. [volume] (Hopkinsville, Ky.) 1883-1889, 1888-08-31
The Great Peril.

silver coin, as 1892, jl7, 75l.jj. In adj
dition TO this amount. by the same
statement, he held: S9WI $50 81 10
cover accrued interest on bonds. 49,
COZ, 79j 30 to meet disbursiug Officers
balance" &c, &c. 9j 7lO,3J0 80 "for
redemption of notes If National Bank
failsd,h &c lOO,OOOOOOO0 preserve for
e1emtion of United States Notes "
In short, the Treasurer of the United
States had in his custody on the date
in money, 1892, 77j ,j2I7G, against
which had been issued gold silver
and legal tender certificates to the
amount of $3j0,Sli,79l 90, leaving
1881 o '0.739 70 in his hand Of which
Sl32, 100000 is clear Surplus This
does not seem right, especially as the
| United States Government had out
standing on that date Sl,Ol4, l38, ~
interest bearing debt on over thOus-
and millions OF which it is paying
interest at four TO six per cent. per
aunum.
The Secretary of the Treasury has
full authority in his hand, under
Acts of Congress, to purshase Of
these interest-bearing bouds-and
stod the interest running longer on
all so purchased-up to the extent
of the Surplus" PLENTY Of bonds
can be had TO save the Government
two per cent. per annum for the years
they may have to run. Since the
Secretary of the Treasury commenced
to purchase with the surplus money
in April last, he has, by official state
ments from the department at Wash
ington, purchased, up to August 2lst,
$33, col, $50 tours and four-and-a-
half,on which he has made a saving
to the people in future interest pay
meuts upwards of Sl2,O00,00O, and
this after allowing for the premiums
paid and with the surplus money
now in the Treasury he could save
the people, in addition forty millions
more of future interest payments and
take this "Great Peril" aud menace to
every interest in the country out OF
the calculation of business.
The enormous crops of the land
now just beginning to move, the
cotton crop of the South on which
we depend so much to pay the bal
auce of foreign trade-all these in
terests demand that they shall not
be imperilled by lack Of action on the
part of the Administration
The spirit Of the law authorizing
the Secretary to purchases bonds, is
clear and unmistakable, that when
ever Surplus" accumulates over
the Sl00,000,000 reserve to be held
against the greenbacks, il shall be used
above fair working balance, 10 de-
crease the debt by purchasing bonds
at the market price; that Surplus"
now, is 1872 800 600 over the green
back reserve. The Secretary has
saved the peop'e, as stated above, about
$1,000 900 on his purchases so far;
therefore there is every good reas-
on why as long as he can get bonds,
he should increase this saving, de-
crease the bearing debt, comply with
the spirit Of the law and take this
Great Peril" of large Surplus"
from the business of the country.
The four per cent. bonds now
have 10 years TO run two per cent
per annum, for each year they have
to run would be IS per cent. If the
bonds should run to maturity each
bond Of $1,000 would cost the Govern
ment l7G%, or Sl7G0 TO save two
per cent. per annum the Government
could pay up to 1885,, or $3.50 for
each bond: but millions could b.
purchased at or under l3096 or ST.
300 for each boud. The "Four-and-
a.halfs," to save two per cent. per
annum, would have to be bought at
not over l0S5g% it might be very
difficulty TO secure many millions at
a.better price than to save the Gov
eminent five per cent. gross for
the short time they have 20
run. The "Currency Skies" not yet
included in Government purchases,
could be had in fair quantities to net
the Government oyer q per cent.
saving for each year they have to run
| Therefore, as large dealers in Gov
eminent Bonds, we do not hesitate to
give our opinion that the Government
could invest the whole surplus OF
Sl32 100000 TO save on the average
two per cent. for each year the bonos
have TO run. and this is exactly two
per cent. per annum better than the
Government is getting on its large
balance lying in the Treasury aud
: National Banks draw no interest
The evils Of a Surplus" are best
corrected by not having any. The
present Surplus" and lis eyils can,
| in very few months be all done
away with by using 1t TO reduce-at
the best price the bonds can be pur-
chased-thc interest bearing debt
much TO the saving aud comfort of the
people. After this fiscal year, judg.
ing from the temper Of both political
parties, there will not be much "Sur-
plus, after providing for the Sink
ing fund, to trouble the business OF
the country.
HApyFy EIsK g. SnJ