New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-03-11
TIE TREASURY AND THE MONEY MARKET

Again complaint is made that the connection
of the Treasury with the money market Is i
source of peril. The Treasury took from chan
nels of trade Sl1. 100000 in February, II i
said. and 1.-THE very nature of the system IN
wolves first Withdrawing currency from com
merce and then returning it in bulk" Then IT
is argued that the Treasury system l. anti
oua,ed. and ought to be retired. Il WAS well
enough in Jacksons day, when total receipts
were twenty millions yearly but has become
a constant source of mischief when receipts
exceed four hundred millions yearly.
The Treasury takes from the channel OF
trade Sl1.OOO.OOO. it j. said. Who stops TO
observe that this money was first put ont by
the Treasury into channels Of trade. in response
to passionate appeals, in either OF several
months last wear? Who has considered that
il must be taken back, because such passionate
appeals were sure 10 be made that the same
money should be empted into the channels OF
trade in this month Of March Who reflects
that the channels of trade will be dry and deS-
ncrafc again next fall and the Treasury must
be prepared TO meet frantic appeals by business
men of this and other cities or be condemned
as wilfully destroying business? If the Treas
il is wanted, il must al some time take i'll those
millions.
II is now one year since Mr. Window became
Secretary. The debt statement OF March, 1889,
Secretary Fairhilds last. showed Sis,O9G, 1913
net cash in the Treasury. Secretary Window 5
statement of March l. 1890, shows of net cash
in the Treasury only $50. $50 $50 50 that there
has been a decrease Of S15.34O.00O. The two
statements were made on the same principles,
and the same items were treated As available
or not available. The net result is that the
amount available has been diminished. and not
increased, during the last year. The Treasury
has put into the channels of trade good many
millions in response TO passionate demands ol
business men and bankers. When II began TO
take in small part Of the amount in February
there was an cutlery, and the bank surplus runs
down TO nothing.
On the face of it., these things indicate, not
i'm the Treasury, but among business men and
bankers a remarkable want of sense. They
knew or ought 10 have known that the Treas
ury would find it necessary to restore early in
the wear the cash balances from which demands
in the fall could be met. But they went on
borrowing and lending Just as long as they
| tONiu, always DI'pdi'N w hl' An' bItnI' VII lH'
Treasury if the money market ran short. There
| is great deal said about the excess Of revenue,
but when the Treasury puts back by purchase
of bonds all the money ii collects in excess of
appropriations. and S15, 00OO 900 more during
the year, what ground for complaint is there
! Business men knew or were informed by this
journal some time ago, that the Treasury had
already bought all the bonds it could afford to
buy for the entire fiscal year, unless prepared
to run down its summer reserves, and enter the
fall months with scanty resources to answer the
customary calls at that season But business
men did not stop borrowing, and banks did no,
stop lending, and so tightness comes.
Let it be granted that the SubTreasury sys-
tenn is not the best conceivable At all events
it is blessing to the country that there is
somewhere a force and man capable of re-
tanning little cash on hand for an emergency
without yielding 70 the temptation to put out
every dollar in sight. Being out of the none,
market the Secretary OF the Treasury has nc
inducement except to adjust business so as u