The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1891-04-29
THE NATIONAL TREASURY.
Conflicting Opinions as to its Present
Resources.

| w ASHINGTON, April So--MlnG DITeCIoF
| Leech. in explanation of his statement OF
| Saturday that there was an available cash
balance of s259, 900, 600 in the treasury, says:
Il hold that the treasury owns some
! S25S 600 900 of hard cash available for any
| legitimate expenses. The money In the
treasury, which amounted to S151, 900 00C
on the lst of this month, consists of two
classes: That which the government holds
! as trustee and that which it owns 1t can
not consist of any other kind of money.
The gold and silver certificates amounting
| Including currency certificates) to S493,
000 000 represent trust money; that Is, the
coin has been deposited by individuals and
the government has issued certificate to
pay back the same upon demand.
Possibly the fund of $1,000, 600 placed
with the treasurer by the national
board for keeping their currency in
good condition is trust money; but
as congress has just ordered the money
placed here by the national banks for their
circulation to be covered into the general
balance OF the treasury. it is difficult to
conceive why this money is any more
sacred. The remainder of the money III
the treasury, some S2lS, ,0oO0O0, Is money
which belongs TO the government as abso-
lutely as the treasury building belongs to
it.
prior to 1885 the available balance in
the treasury WAS always shown as the
amount of money which actually belongs
to the government The 500, 600 in
gold, purchased by the sale of bonds for
resumption purposes, was always included
as a portion of the available. balance
in the treasury prior to that date by
all of the secretaries of the treasury.
Mr. Sherman never set this apart as a
liability or any special reserve. The law
does not say it shall be so set apart, and
there is no reason why it should. Nor is
there any reason why the legal tender
notes issued in the purchase of silver
bullion are any more current liability
against the cash in the treasury than the
other greenbackS are. They are the same
class of legal tender money, only better
money, and the credit of the government
would be just as much in jured if the
treasury should fail to redeem one of these
notes or any other obligation In gold as it
would be if it should fail TO re eem one OF
the green backs in gold upon demand.
These notes are not silver money, as peo-
pie generally suppose. They are issued IN
the first instance in the purchase of silver
bullion, but as they come back into the
treasury are re-issued for all purposes and
are simply and purely new issue of the
old greenback.
''The fact that the secretary is anxious
to convert all the assets of the govern
ment into the most available form OF
money Is no lUulcdIlUu IiIhJ JucTS Is any
shortage in the treasury funds. So far as
coinage of the trade dollar bullion is con-
cerned the coinage of that bullion into
silver dollars was ordered by act of the
last congress, and it is he intention to coin
it into dollars after July l, whether the
treasury is low or full of money. So, too,
In regard to the coinage of the subsidiary
silver coins, congress made an appropria-
tion of $50, ,0J0 TO pay the loss on such re-
in md 1TJGfa nlfl wa f-at
new designs for our coins it is my intention
to set the mintS at work on such coinage
as far as the appropriation will extend
But none of these matters have anything
to do with relieving any shortage in the
treasury. If the secretary should decide
to extend the ~ per cent bonds at the
rate of . per cent, it would simply be a
business proposition rs to whether it
would be more profitable for the govern
ment to use its money in buying bonds
bearing per cent interest at the current
rate, IL problem which the secretary in his
wisdom will doubtless decide at the proper
time. But imagine that the recent or
der suspending the purchase of bonds and
the policy of the secretary in regard to
the AZ per cent bonds arises more from the
considerations of the fall money market
than from any present or any anticipated
lack of funds.
AS a matter of fact, some 500, SOC, 900 of
4 per cent bonds are in the treasury as secu-
rity for national bank notes and the treas
ury would only have to provide 10 per cent
of the cash required to redeem them, as the
banks themselves would have to provide
the rest of the money, unless they should
decide TO purchase As to replace the 414s,
which at the present price is not very prob
able. 1t must be remembered that when
the banks pay this money to redeem their
notes the money paid in, under the recent
act of congress, becomes Immediately an
available asset of the government. while
the national bank notes themselves would
come IN very slowly for redemption"
ANOTHER VIEW.
WASHINGTON, April % The condition
of the finances OF the government has
been a subject OF active discussion for
some time past. The Democrats have
been insisting ever since the adjournment
of congress that deficit was unavoidable,
and Republican papers have been con-
tending that there would be money enough
on hand to pay all liabilities. All along
there has been a conservative expression of
confidence from the treasury department.
in regard 30 the ability of the secretary to
meet every alleged emergency. The couu-
try was Informed that the large appro-
priations made by the Fifty-frsu congress
were not ventured upon until after fuli
between the chairman of the
committee of the house and
the proper officials in the department.
The ways and means were all calculated
upon, and not dollar was recklesslv
Some Of the appropriations
have been demanded sooner than expected,
as for instance the refund of the direct
tax, but that only called for a little closer
figuring 10 meet the immediate demand.
At no time has there been any appre-
henSion in the department of a deficiency
occurring. That there would have TO be
close financial sailing and calculating was
from the start, but that the in
creased expenditure and reduced reCeipts
would eventually cause Il deficiency was
always denied. In recognition of The ad-
lnltted needs OF the treasury for careful
Secretary Foster has from
time To time OF late suggested several
methods by which the surplus could be in
creased. Not that extraordinary shifts
were needed 10 meet the current expenses
OF the government, but merely As a matter
OF good hnRnClering. Every way was
studied TO keep the falling surplus at a re-
5 Spectaole figure. in order 10 have safe !
margin TO draw from.
With this situation thoroughly under /
stood there has been no alarm ielt any
" here, but If interviews such as that I
given out by Director of the Mint Leeoh I
the treasury department VIII (
not only be laughed at but NAV become /
embarrassed. This official, who I
nas nothing TO DO with managing the /
finances Of the government sets himself 4
up as an authority. and asserts that the 4
| III ell states has IN its vaults today in 4
good hard money over $3.50, 0o0, 0o0 availa- /
bic for any OF the legitimate expenses of /
the government. This startling announce /
nent by Mr. Leech, made al = time when
he secre etary and other able finsnciers ara !
iZuring on sayIn- Il few millions here aud
here out OF the appropriations, l. sufficient
% demand instant attention. It's 30 .
as to make every oae wonder
Why some one connected with the govern
nent never discovered * before, and uue
o shame those Republicans OF the last