The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-09-10
REDUCTION OF THE DEBT.
A STATEMENT FROM THE sECRE-
TARY OF THE TREASURY.

Newspaper Claims That the National
Obligation Was Increased $1,000
600 During July and August De-
clared Erroneous-Fi Figures Given in
support Of the Secretery's Denial
WASHINGTON. Sept 9.--Referring 20 GER
tain newspaper statements that during the
months of July and August of this year,
the public debt had been increased over
S1,OOO,00O, while during toe same months in
1888 the debt had been decreased over s1I.-
100000 Secretary Window to-day said,
These statements convey an entirely err
roneoos impression. The fact is, as shown
by the books Of the treasury, that on June
80. 1889, the tutal amount Of the public debt.
including bonds of all kinds, was 1896. .9sS.-
9S7; and on Aug. 81 it was only 1915.
AIS, ,S07, showing q reduction Of $20,91O ,1S0
during those two months. The reduction
during the same month of last year was
only about one-thlrd of that amount. viz:
$7,051, ,270
INTEREST CHARGES REDUCED.
''The reduction of the annual interest
charge on the public debt during the months
of July and August, 1888, was only $780,
30l 10, while the reduction Of the annual
interest charge during the same months Of
this year was SS75, ,6S5, being lit
tie more than three times as great
re iuction as that of last wear.
In fact, the reduction Of the annual interest
on the public debt during the last two
months has been equaled by only few
periods In the country's history, notably In
President Garfleld's administration. during
the first six III nths Of which the annual
interest charge was reduced S15, ,347,S72
HOW THE ERROR AROSE.
"The erroneous newspaper conclusion
| above referred TO arose doubtless from the
peculiar form of monthly statement of the
public debt issued by this department., I'm
which the amount of tho debt is given less
cash in the treasury. By this form any in
crease OF cash in the treasury shows an ap-
parent decrease of the debt, and disburse-
ments, for any purpose other than the pur-
chase of bonds at par value, show an APP
parent increase OF the public debt equal to
the amount Of such disbursements.
AN EXAMPLE.
"For instance, If the public debt were
stated to-day at '$S000O0,0OO, less the cash
| in the treasury aud tomorrow $4,000. 900
| should be paid out on warrants drawn by
other departments, the amount of the
| public debt less the cash in the treasury
| would be stated tomorrow assuming no
| receipts) at $4,000, 900, Notwithstanding
the fact that the entire $40, 900, 900 so drawn
out may still be in tho hands of the
| bo ded disbursing officers Of other depart
| ments, and to all intents and PURPOSES
as much 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 $20,-
80, $780, tho debt statement ehowed an APP
parent increase of $7,004,003.
HOW THE INCREASE OCCURRED.
The Increase in the disbursements made
| in July and August of this year over july
and August of last year is accounted for
| by the tact that most of the appropriation
bills were not passed 10 1888 until Septem-
Der and October, and the money was not
| available, except TO such limited amounts
as were permitted by Continuous resolu-
tions" Of congress, while i'll 1889 the appro-
| priations for the entire year were available
| on July |. Nearly all the departments
| drew in July and August, and placed in the
hands Of their bonded disDursing officers,
sums for future use largely in excess Of
the expeditures for those months. One Of
| them will have balances on hand from such
| drafts Of S5,000,000 after the September
payments shall have been made.
BOND PURCHASE PREMIUMS.
''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 premium paid
of 81, ,575, ,926 43. All these things figure in
| the last debt statement as an increase in
the public debt, while in reality they have
nothing 10 do with it. l can readily see
how an honest misapprehension may arise
from the form OF monthly state
ment, 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
$89, ,256; in November, 1885, it was $4, ,SS7,-
600; in November. 1887, 100000; in No
vernber, 1888. 81, 1893, ,5l7, and in February,
1889, 81, 6,443, ,444"