New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-06-17
DEMOCRATIC FINANCIERING.
SOME BOND OPERATIONS WHICH THE LAST AID.
IMMIGRATION ENGAGED IN.
To the EDITOR OF The TrtbHns.

To TIC Editor OF The TrtbHns.
Str: comparison Of tho receipts and expenditures
Of the for the years ending Juno 10
1854 with thoSe for Tx" period ending June 30.
1854 while not drawn strictly party lines. Is
Just tho Democrats. for II Is well known tina,
after the election Of M Cleveland tho policy Of the
Treasury shaped according 10 his views and thosr
Of his adytscrs SO that they only few months
after June. 1851 OF purely Republican Adminlstra
ton, aud the record Of those months shows 10 tho
advantage Of tho Democrats In the comparison. In
round numbers the revenues during the four hSra
years ending in i5s4 were 81 olI OOO,OO and dur
ing the four years sl5ll 100000. or tIoOOOO.
900 loss. But there decrease ~ 1900 900 ln
the amount N Interest paid on tho public dob', that
the decrease Of the available revenues only a2T.
100000 On the other hand. the ordinary eNpcndIt-
ures the nrst period s7sOOOO. 600 and In tho
second ss30 100000. Increase OF s7GOoO.oOO.
The total decrease OF the amount available for tho
reduction Of the public debt therefore sIO3. 600.
600 But the amount applied for This purpose
only Sl4G.OOo.oCO as against 1901 900 900 in tho
four years preceding. or Sl46,OO0.O 600 less. The
s42 900 900 remaining. which available bnt not
used. deposited In National banks pledges o!
United States bonds.
Putting II IN another light. tho Dsmoc ratlc Admin
statlon. Is compared with tho last Republican one.
applied si45 900 less III" reduction Of the debt
Of which sum s27 900 900 represented the decrease
OOo withheld from this object and applied rs
follows:
Incrrase OF ordinary expenditures so nOO 900
Deposited IN National NEUTRALITY-SUSPICIOUS.. - 90 0oO
Total ... 900 900
II Is not the purpose Of this letter 10 comment
the first ~ these items though II may bN remarked
that $40 600 900 year IS 4 considerable addition to
running expenses even though not quito half Of ~
goes for pensions Tho second item has received n
good deal ~ discussion, hut will bear morr.
The result Of these deposits to the banks may be
illustrated by example In December. 1887. 4 IL
pr cent bonds worth in tho market lO7 ~
A bank bought sloO 900 Of them for s1O7 800. de-
posted them in the Treasury and received IN return
100000 In money, set aside eli 900 OF this as a
reserve and had left $4,000 to loan to its customers
Tho Investment with the Treasury only 900, 800.
and on this up March l. 1879, the bank received
g. 625 interest and then sold the bonds 10 the
rotary OF the Treasury for s1Oso 900, $500 morn
than they cost The total profits were therefore
60 1876 not a bad investment Of 800, 800 for year
and three months. Il Is nearly twenty-five per cent
per annum The s4a, 100000 loaned In this way
brought into the banks something lrks g. 900 900
venr nj the same rate Of profit 10 them.
Tho result to the Treasury may not be accurate
" asceraiuabe, but It's character Is equally clear.
The $40 600 900 went into tho circulation and had
tts effect II raised prices, including the price Of
bonds But It did more. II gave To bonds value
that probably no bonds ever possessed before When
ns &y have be- Se can T sR 70 ss S
on ,bcm and the mercantile rate on IS per cent Of
their f.cc value besides he will no longer offer them
a. i ,p Treasury could have mad for that price Ia
December, 1887 COS. him o. 3; ,t up to ~, March
then h' hos TO- p sS @ them Sa
@Sss sn. Is wsu have paid lls So for them in