St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-07-03
THE REASON OF 1T.
Secretary Foster Explains the New
Debt Statement.

Debt statement.
WASHINGTON, July 4.-The following
is an authoritative explanation of the
change in form of the debt statement
issued yesterday and the reason there
for. The secretury of the treasury calls
attention to certain changes IN the
monthly debt statement issued for June
1861, and in the daily statement of cash
in the treasury. Heretofore the man
ner and makeup of the monthly state
ment required the showing of the in
crease or decrease in the monthly debt.
Under this form it has happened on
several occasions that when large rur-
chases of bonds were made, the state
ment following would show an increase
of the public debt, when a reduction
had really been effected. This was
owing to the fact that the principal and
premium paid for bonds reduced the
cash Oh hand beyond the amount of
bonds actually redeemed.
The secretary has concluded, after
much thought on the subject, to separ-
ate the statement of the debt from the
statement of the cash in the treasury.
Hereafter the statement of the cash on
hand Will show the net increase or de-
crease from month to month, and this
statement will be part of the form now
adopted. In making up the new state
ment of cash in the treasury, the figures
will plainly show the different kinds of
money included in the total. Against
this total will be stated the cash liabili-
ties. These items have been elimin-
ated. The secretary holds that if ac-
crued interest may be charged as a
liability against cash, then with equal
propriety accrued salaries can be so
charged, or IN like manner, the accrued
liability for the construction of public
buildings, or for the improve
ment of rivers and harbors.
The matured debt item is made up of
the remnant of bonds and other indebt-
edness remaining unpaid from the foun-
dation of the government. 1t is as
sumed that less than % per cent of these
will ever be presented for payment.
They are now, as heretofore, carried on
the debt statement, but not as liability
against cash.
The secretary also calls attention to
the items of liability against the cash in
the treasury, composed first, of the
per cent fund held for the redemption
of the uncurrent national bank notes,
which sum can Only be reduced by the
retirement of national bank circulation.
The secretary thinks this amount ought
ny law 10 NC CON6Ieu lulO lll6 treasury,
as was done recently with the fund for
the redemption of failed and retired
national banks. The probability is
that this sum will be increased
during the coming year instead
of being reduced. Second, the the item
of outstanding checks and drafts which
rarely ever falls below s.. 900, 900. Third,
discussing officers balances, now
amounting to about S34, 10000 This
money is in the treasury and in govern
ment depositaries to the credit of dis
bursting officers. and seldom falls below
the present amount. Fourth, agency
accounts, made up mainly of postal
revenu es and subject to the draft of the
postma ster general. This too, rarely
falls below S5.000,000.
These four items amounting to $751;
000, 900 and if held by a bank, could be
safely loaned up to nine-tenths of the
total sum.
The secretary will not hereafter de-
duct from his cash balance the amount
on deposit in national banks, nor the
fractional silver coin on hand. He
thinks there is no good reason why this
should ever have been done.