Huntsville gazette., 1889-09-14
THE PUBLIC ACCOUNTS.

Secretary Window Explains the Appar-
ent Increase in the Public Debt in the
Months of July and August-Instead of
an Increase of s.. 9O4. OO3 There
Reduction of $50, $40. .1S0-It is the Pc
culiar Method of bookkeeping that
Makes the Adverse Showing.
WASHINGTON, Sept. 10.-Secretary Win
dom, in an interview with a representa-
tive of the United Press, made the follow
ing statement in reply to certain news
paper statements that during tue months
of July and August of this year the pub
lie debt and been Increased over seven
million dollars, while during the same
months in 1888 the debt had been de-
creased over eleven million dollars.
"These statements" the Secretary said,
convey an entirely erroneous impress
sion. The fact is, as 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 1896.
S3S, 81, and on the 3lst day of August it
was only SS75, AIS, S07, showing a reduction
or $50, $40, lS0 during those two months.
The reduction during the same months of
last year was only about one third of that
amount, viz, s. 051, go. The reduction of
the annual interest charges on the public
debt during the months of July and Au-
gust, 1888, was only $291, 3)l.10 while the
reduction of the annual interest
charges during the same months
this year was $S75, being a
little more than three times as
great reduction as 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 couutry's history. notably
in President Garfield's Administration,
during the first six months of which the
annual interest charge was reduced SIS, :
347,S72. The erroneous newspaper con-
ciusions above referred to arose, doubt
less, from the peculiar form of the
monthly statement of the public debt
issued by this department. in which the
amount of the debt is given ''less cash in
the treasury" By this form any in
crease of the cash in the treasury shows
as an apparent decrease 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, if the public
debt were stated at $500, 900, 900 less cash
il the Treasury and tomorrow $4,000, =
600 should be paid out on warrants drawn
by the other departments, the amount Of
| the public debt less cash in the Treas
| ury would be stated tomorrow (assum
| ing no receipts) at $50, 0g0, 900, notwith- :
standing the fact that the entire $40, 900.
| 600 SO drawn out may still be in the
| hands of the bonded disbursing officers
| OF the other departments, and to all in
! tents and purposes as much Of the gov
ernment as if it were in the vaults of the
Treasury.
1.-The facts during the last two months
exactly correspond to this supposed case,
and though the actual reduction Of th Q
| debt was 20,9l0 $50, the debt statement
showed an apparent increase of $7,90i, 003.
''The increase 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 iu 1883 until Sep
tember 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
entire year were available on July l.
Nearly all Of the departments drew in
July and August, aud placed in the hands
of their bonded disbursing officers sums
for future use largely in excess Of the ex-
penditures for those months. One OF
them will have balances on hand from
such drafts of five million dollars after
the September payments have been made.
'The largely increasing 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 S2,57j, 926 43. All
these things figure in the last debt state
ment' as an increase in the public debt,
while in reality they have nothing to dc
with it.
81 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 ex'
planation. Similar apparent additions q
the public debt are quite common. Fol
| instances: In March, 1885 the apparent
increase was $50, ,256; in November. 1885,
| S4,8S7, 900; in November. 1887, S1,490, 900
in November, 1888. $11, 49, SIT and il
February, 1889, $6,443. 344"