Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-09-10
STATUS OF THE PUBLIC DEBT.
Secretary Window Says II WasReduced,
Not Increased, In July and August.


Referring to certain Newspaper statements
that during the months Of July and August Of
this year the public debt had been increased
over d, 900 900, while during the same mouths
in 1883 the debt had been decreased over e1l,-
100000, Secretary Window said: Those state
ments convoy an entirely erroneous impression.
The tact ID, - shown by the books Of the
Treasury, that on the 30th Of June. 1889, the
total amount Of the public debt, including
bonds Of all kinds, was $685. sss, ss7, and on the
slst day Of August it was only ss75, AZ, 500,
showing reduction Of Gao, $40, 1ss during these
twomonths. The reduction during the Same
months OF last year was only about
one-tnird OF that amount viz, ~ les, 40
The reduction Of the annual interest charge
on the public debt during the months Of July
and August, 1883, was only &29l, SOL 10, while
the reduction Of the annual interest charge
during the same months this year was Ss75.os5,
being little more than three times - great
reduction a. that of last year. In fact, the
reduction Of annual interest on the public debt
during the last two months has been equaled
BY only few periods in the country's history,
notably in President Garfeld's administration,
during the first six months Of which the annual
interest charge was reduced Sl5.347,o72
The erroneous newspaper conclusion above
referred to arose, doubtless. from the peculiar
form of the monthly statement Of the public
amoui.t Of tbs debt Is given, less cash in the
Treasury By this form any increase Of the
cash In tie Treasury shows an apparent de-
crease Of the debt. and disbursements, for any
purpose other than the purchase Of bonds at
par value, show an apparent increase Of the
public debt equal to the amount OF such dis
bursements. For instance, il the public debt
were stated today at $500 900 000 less cash in the
Treasury and tomorrow 1000, 900 should be
paid out on warrants drawn by the other depart
ments, the amount Of the public debt less cash
in the Treasury, would be stated tomorrow las
suming no receipts) at est, 000, 900. notwith-
standing the fact that the entire Sl0, 000, 900
drawn out may still be in the hands Of the
bonded discussing officers Of the other depart
ments, and to all intents and purposes as much
the money OF the government as il it were in
the vaults Of the Treasury.
'The facts during the last two months exactly
correspond to this supposed case, and, though
the actual reduction OF the debt was e2O $40, $780,
the debt statement showed an apparent in
crease Of 81, 094, 0O3. The increase Of disburse-
ments made in July aud August this year over
July and August last year is accounted for by
the fact that most Of the appropriation bills
were not passed in 1888 until September and
October, and the money was not available, eX-
cept to such limited amounts as were per-
mitted by the continuance resolutions OF Con-
gress, while In 1889 the appropriations for the
entire year were available on July l. Nearly
all Of the departments drew in July and Au-
gust and placed in the hands Of their bonded
disbursing officers sums for future use largely
In excess Of the expenditures for those months.
One OF them will have balances on hand from
such drafts Of $1,000, 600 after the September
payments shall have been made.
The largely increased purchases of bonds
for the sinking fund during the last two months
over the corresponding months Of last year
show an increase in the premium paid Of e.
90, ZIG. a. All these things figure in the last
debt statement as an increase in the public
debt, while in reality they have nothing to do
with il. can readily see how an honest mis-
apprehension may arise from the form of the
monthly statement, and therefore have taken
the trouble to make this explanation. Similar
apparent additions to the public debt are quite
common. For instance, in March, 1885, the
apparent increase was as. 256: in November,
1855, it was "a, S37, 900; in November 1887,
sLa9o'OO0; in November. 1sSs. sll, ls9, 81, and
IN February. 1889. S6. 443 344"