Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1891-05-08

sesvfng tbe residns u IL II pr eeuk-
loan for adjustment vifhin The ~
cal year which begins On The 1T dry
Of Jsiy NEXT This action on his
part vas simply precautionary neas-
are, ard one 10 BE- emphst1ca1fy
endorsed In he present condition q
the money market, there Is no occasion
whatever for the tressury bsying bonds
70 satisfy currency demands. During
the next fiscal year sinking fund require.
ments will call for shout 30 go 600.
|srd Il IL certainly prudent on the parf
OF the secretary to strengthen his
resources against future demands at q
time when. like the present, such &C
ton Ill be least felt Moreover. there are
about 81 600 900 Of these 4 II per cent.
bonds outstanding. Of which over S2a,-
go go are held by national banks a. a
basis for circulation. and number Of
profnsnen. bank officials have taken
particular peins To fmpress the seere-
,ary sfth the advantage Of extending
these bonds, temporarily at least, at
per cent; thus saving the banks the
necessity Of further contraction in
circulation, AMI relieving the treas
ary Of the Obligation Of redeemipg all
OF part Of the 81 600, zoe, should such a
cogrse be deemed convenient 70 the
government. These considerations alone
are snfIsient TO justify the temporary
suspension Of bond purchases. The ap
prehensions, however, that the treasury
vii! BE- unable 20 meet its obligations
are altogether gronndless, and can only
be attributed to ignorance, else to
ramors circulated for speculative and
political effect. The fear Of any in
trenehment upon the traditional
10000 600 gold reserve arises
only from lack Of knowledge a.
10 the treasury's real condition
At the present time there Is In the treas
rry over sI42 COO 900 gold in excess of
gold certificates outstanding. The banks
hold s2s ,000, 900 Of governmen: deposits
ia addition to which the treasury holds
about $50 600, 900 fractional silver and
about si5,0oo,0 900 against which no GER
have been Issued. Excluding
the 100 millions gold held for redemp
ton Of United States notes, here are re
sources available Of not less than los
millions. Its quite true that the demands
upon the treasury Will be enormous at a |
time when It's income will be curtailed |
by the adjustment of sugar duties. Itj
Il quite true, also, that those demands
VIII obIige prudent management of the
nations finances; but the resources Of
our fiscal machinery are varied and
ample enough TO meet every difficulty.
1t should not be overlooked that |
many OF the liabilities Incurred by
recent legislation, enormous as they
are. cannot all become due in a i
single year. Payment upon many Of
these appropriations. particularly those
on public works, necessarily extend |
over = considerable period, and are not
made in the lump; besides, the govern
ment can and always does consult its |
own convenience in respect to meeting a |
large portion Of its current obligations. |
Differences Of opinion may exist about |
the wisdom and extravaganza of a Con.
gress which imposed such burden
upon the treasury; and in certain
quarters efforts are certainly be-
ing made to exaggerate the changes
In policy thus imposed; but all fears
the latter's ability to meet
every probable demand are too absurd
70 deserve serious consideration. A good
ieal of speculative capital will be made
Put OF any new departure in treasury
policy which circumstances may require,
but those who are banking upon the
possibility of the United states entering
he market as a borrower next fall are
likely to find themselves very much