Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1890-04-25
ELr. Plumb Introduces a Radical
Measure tO-CIear the Treasury
Of it's Surplus.

Measure &C. Clear the treasury
of it's Surplus.
WASHINGTON, D. c., April 14-1Ir.
Plumb introduced a bill for the dis
position of certain funds in the treas
ury, and asked that it be read in full,
as he desired to call the attention Of
the finance committee to it. 1t pro-
vides that the money required to be
deposited for the redemption of the
national bank circulation shall be
covered into the treasury and treated
as funds available for the payment of
the public debt, and for the current
expenses of the government; that all
funds held for the payment Of the
matured debt. and interest due and
unpaid, shall be similarly treated, and
that hereafter no funds available,
above the sum of S10,OOO.OOO shall be
retained in the treasury this not to
be construed, however, as permanent
ly diminishing the fund of 100000,
600 now held for the redemption of
treasury notes. He said that there
was less than $500, 100000 in cIrcula-
ton for the use of the 65,OOO,OOO peO-
pie Of the United States, probably
not more than $40 per capita. The
system of finance that had been built
up and maintained had brought about
! that result. It had It's merits and its
great defects. One of the greatest of
those defects was the compulsory
holding in the treasury Of that very
large sum Of money on the theory
that it was needed Ia theory confuted
by every known fact), and on the
further theory that the secretary of
the treasury was to be the arbitrator
of the financial questions of the peo-
pie. It had been stated in the public
prints that in pursuance of his policy
/ of controlling the finances of the coun-
| try, the secretary Of the treasury had
contracted the currency during the
month Of February over $IO,OOOOO0.
He, Mr. Plumb, believed that that re-
tention of money in the treasury and
that assumption on the part of the sec
rotary to do what might have once
been proper, but which now cOnsti-
tutes a menace to the business Of the
country, ought to be prohibited by
law. A senator setting near HIM had
asked ham for what nominal purpose
the $3.50 100000 was held in the treas
ury. He would tell HIM. A hundred
millions was held in assumed obedi
ence to the law Of 1888, to provide fol
the redemption of legal tenders
treasury notes. Sixty odd millions
was held for the redemption of nation
al bank nOtes-of banks that had gone
out Of business, or that were retiring
a portion of their circulation. Be
tween five and six millions were heIC
for the redemption of such notes o
national banks as. from time to time
came into the treasury and wer,
found to be unfit for further circula
ton. About seven millions was helC
for the purpose of the payment o
coupons due and not presented, anC
of debt which had matured from tim
to time, but the evidence of which haC
p not been presented, and some o
p which probably never would be pre-
sented AS to the remainder Of 1t,
was impossible to tell why it was held
He had given all possible scrutiny t
the statement of the treasury and b
could not tell. The confusion Of sub
jects and of amounts was such that
was impossible for any one to tel
about It. It was enough to know tina
1t was not held there for any usefu
/ purpose. He did not think that th
2 law required any oft to be held ther
except such portion as in the discre
ton of the secretary was necessary t
meet the obligations of the govern
ment-
g He mir. Plumb admitted that th
$ secretary might even, under that the
d DRY, hold as large a sum as now /
b the treasury, although he (AIr. Plumb
, should think it an extraordinary US
/ of the secretary's discretion. FrOl
every quarter there was abundant ev
dence that the public need for tt
y transaction of its business, that tn
u money in the treasury should be di
IS bursed. For all useful purposes !.
# might as well be In, the bottom Of til
e sea as in the treasury. During la
> year nearly S4O,OOO,O00 Of nation