New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-07-03
THE NEW DEBT STATEMENT.
PRAISE FOR THE CHANGES MADE BY SEC.
RETARY FOSTER.
EXPRESSIONS OF OPINION BY NETWORK
BANKERS AND BROKERS.


The changes made by the Treasury Department in
the form OF making up the monthly debt statements
were known to be contemplated by the Secretary and
hcnce their appearance in the statement Just issued for
June has occasioned only slight comment in financial
circes The explanation of Secretary Foster, which
accompanies IT, is lucid that any one at all familiar
with figures can readily understand wherein the I'M
portant differences from former statements exist
Bankers who talked on the subject expressed the
opinion that the baancesheet is cearcut and honest
in detail and that the items are so arranged as TO ad
nit of their study without confusion.
Henry W. Cannon president OF the Chase National
BANK said IN a general way "The change, In my
opinion is a step towNrd simplifying what has oeeh
for some time a complicated balance-sheet' Inc lie"
items that have been dropped from the statement aS
heretofore made would not have appeared IN the stae
ment ~ any large corporation like the Bank of England
or the Bank of France, and did not give anything Oh
value 10 the public by being printed The operation Vi
the Treasury Department under present conouohs Is III
many respects similar to that OF great eoVeIli'o"
bank without deposits, and, therefore, "eIo nv
reason why the statement Of its affairs should not be
made in plain and simple manner, with as rev coii
plications as possible In other words al Oh u'e "'
sets are entirely available against all liabilities OF tne
rsnry The fact that te assets consist partly Oh pun
ION partly of subsidiary silver, and partly {" uepo9U "
National banks really makes no diierehce 10 o4io P
While neither the bullion nor the SUBSIDIARY IN On,
al
in the National banks might not be Withdrawn al at
once without great discomfort nevertheless they are
available for use as may be needed from nme 10 'iio
in the course Of the business Of the Treasury Win VI.
public There is reason why the puoHo W.
statement should not show the actual olherenoe Oe
tween assets and Liabilities as indlcaUed III Ui0 H0"
form" . g y,
ro,oh,ns +bts came feature of the statement s. "
White said The form of the debt statement as pro-
posed by Secretary Foster is sensible IN thaO oo
forms 10 the facts There never was INC i'9'
sense IN not counting deposits in National banks as M
available asset. There never was any .nsror-n
saving that those deposits could not be WITHDRAWN
.,hout uonetarv disturbance. If the Government
checks on the Bank of Commerce for Sl,oOoVoo -
no harder for the Bank Of Commerce 70 pay IL u'" "
Drexel, Morgan Go. drew ohecA ioI 'No % s
amount In either case the person receiving IL NC
posit n in their several Individual banks ana IL Wy
pears in the Clearing House sheet as deDt 70 u.
1.Dr 10 Cormerce and q credit to the PARK ana
American Exchange and the Importers ana Iraoers'
or wherever else the parties do business anu ~ uo
not affect the business of the city DOLLAR
aAs TO the form in which the minor silver CONS
appear the Secretary proposes to report UV"i 40
wh.t they are. and the public can judge ior HSem
:. h.bor q Is dangerous TIE statements VIII
speak for themselves and will enable the puonc 10
estimate at their exact value the Bourbon ana Mug
vump lies disseminated on that subject"
pravton Ives president Of the Western National
Rank said: at seems to me an entirely hatural anu
proper method Of Issuing the statement Cef'''i'iS
- the banks are good it cannot be helo thaV AoneH
20 tba credit of the United states or OF any o'her
account In them is not available. IL "ouiu w %
available as money in the Treasury. proVlueu inc u"N
are solvent II seems to me, also' ehuIe1y PioP'
that the amount OF subsidiary coin should De cuuo III
the statement since the Treasury Department mas u
cided to recon that balance tlhaiS' IL Soen1 " .
that this form Of statement will give moch inore
ta idea NJ the true state of the Treasury nnances
,oD the form of statements which have been lssued III
recent years" -, -,
Henry Clews. speaking generally on Vhe SUI
,ect said 81 think the statement is perfectly honest
and straightforward 1t has been the practice IN tIe
rost "a regard the sum Of S10o,o00oO0 as reserve
cd against the lepaltender notes issued, and by
oomnon consent IL has been supposed that 1t would
remain there as a sacred fund. There was no Ia"
that made il incumbent upon the Government 10 40
this Now the new method Is TO call it part OF the
balance. This makes better showing 10 the cEe"'
of the Government but 1t does not follow uat DC
cause this money is held to be part OF the balance 1t
is going to be infringed upon. 1t SIMPLY bl1gl'ehs
ND the statement that the Government issues here
tofore that 800 900 has been scarcely recognized
as having an existence great many people had
almost forgotten that 1t there. This new meulou
of bookkeeping is going to make 1t transparent 10 10
every one that it has an existence, and IL VIII
srengthen the credit OF the Government accordingly
it In active Slght De1oIe DONy -'VA Nv
see any objection to counting the fractional cola
II is lying in the Treasury. II can be put lnlo
larger coin and into circulation when necessary.
al take exception TO some Of the papers charg-
ing that the Treasury Is bankrupt. treasury can
not be bankrupt when the Government back OF that
treasury Is not bankrupt The treasures of Portugal
or of Argentine are bankrupt because the Governments
are bankrupt. But you cannot say the Treasury OF
this Government is bankrupt when the secretary Of
the Treasury Will be able TO refund the S5lOO0,OOO
of bonds maturing SEPTEMBER ! with the rate re-
duced TO per cent. When these S51OOO,0OO bonds
are negotiated, they will he as soon as the Govern
ment consents, they viii be virtually thereafter .
perpetual bearing per cent interest being pay
Able at the pleasure Of the Government there being
no date fixed for their maturity. They will become
then bonds of the largest issue the Government has
ever had and at the lowest rate issued by any
nation. How then any one say the Treasury
az the United States is bankrupt, when the credit
OF the Government behind the Treasury must be
measured by that very transaction and which of IT.
self places our National credit at the highest standard
OF any nation i'll the world. The lowest rate for bonds
issued by other nations has been per cent and these
were English cons0ls. On part of these the Interest
stand today at 96, drawing 81 per cent more thar
those OF our Government which are going to be
taken at par and Will stay al par and above. Suci
a showing as this does not indicate bankruD
Treasury"