The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1889-09-10
Secretary Window Points Out Some Popu.
lar Fallacies Arising from the Peculiar
Method Of Stating the Public Debt.
General Ben Butler, Charged with For
gerry, Creates an Interesting Scene.
Europeans Alarmed at the Possibilities Lris-
ing from the Pan-American Congress-
Josie Holiness Appointment.
GOVERNMENT FINANCES.

Secretary Window Points Out the Deceptive
Nature Of the Debt Statement
WASHINGTON. Sept. 9.-Referring to cer-
tain newspaper statements that during the
months of July and August of this year.
the public debt had been increased over
$7.0O0,0O0 while during the same months in
1888 the debt had been decreased over Sll.-
100000, Secretary Windom said to-day:
Those statements convey an entirely
erroneous impression. The fact is as
shown by the books of the Treasury, that
on the 30th of June, 1850. the total amount
of the public debt. including bonds of sill
kinds, was $S96, ,Sss. .9S7. and on the 8lst day
of August it was only SSH. .47s s07, showing
reduction of $40 ,910.ls0 during
those two months. The reduction during
the same months of last year was only
about one-third of that amount-S7, .2J0.
The reduction of the annual interest charge
on the public debt during the months of
July and August. 1883. was only S29l. .Sol.10.
while the reduction of the annual interest
charge during the same months this year
was SS75. .6S5. being little more than three
times as great reduction as that of last
year. In fact. the reduction of annual in
terest on the public debt during the last
two months has been equaled by only q
few periods In the country's history. nota-
bly, in President Garfeld's administration,
during the first six months of which the
animal interest charge was reduced Sl5.-
347,S72
THE erroneous newspaper conclusion re-
ferred to arose. doubtless. from the peculiar
form of the monthly statement of the pub
lie debt issued by this department, in which
the amount of the debt is given less cash
in the Treasury BY this form any increase
of the cash in Che Treasury shows an appar-
ent decrease of the debt; and disburse-
ments, for any purpose other than the pur-
chase OF bonds at par value. show an ap-
the amount of such disbursements. For IN
stance, if the public debt were stated to-day
at $500, ,000.0 .000 less cash in the treasury
and tomorrow $l0,O000O0 should be paid
out on warrants drawn by the. other
public debt, less cash in Treasury.
would be stated tomorrow lassuming no
receipts). at $50, 100000, Notwithstanding
the fact that the entire S10.000.000 so drawn
out may still be In hands of the bonded
disbursing officers of the other depart
ments. and to all intents and purposes as
much the money of the government as if it
We're In the vaults OF the Treasury. The
correspond to this supposed case, and
though the actual reduction of the debt
was $40, ,9l0. $50. the debt statement showed
an apparent increase of S7,094.0 .003. The in
crease of disbursements made in July and
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, except to such
limited amounts as were permitted by the
continuance resolutions of Congress,
while in 1889 the appropriations for the enc
tire year were available on July 1.
NEARLY all of the departments drew in
July aud August, and placed in the hands
of their bonded disburslng officers sums for
future use largely in excess of the expendi-
lures for these months. One of them will
have balances on hand from such
drafts of S5,0OO.000 after the Sep
tember payments shall have been
made. The largely increased purchases
of bonds for the sinking fund dur
ing the last two months, over the
increase in the premium paid of q, 575. .926.4 .43.
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
misapprehension may arise from the form
of the monthly statement, and therefore
have taken the trouble to make this ex-
planation.
''Similar apparent additions to the pub
lie debt are quite common. For instance,
in March, 1885. the apparent increase was
SIS, $50; In November, 1885, it was q. SS7 900;
in November, 1887, 81 .490. 600; in November.
1883. Sl1. 9,S17, and in February, 1889.
Sc. 443 344.v