The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-09-07
D0DGING A BIG DEBT.
TRUE INWARDNEsS OF FOSTERS
BOND EXCHANGE SCHEME.

The Extravaganza of the Billion DOL
lar Congress has Placed the Secre-
tary of the Treasury in an Awkward
Position.
Tho indulgent public. says Washington
special to the Republic, and that part Of it
particularly that is inclined, by reason of
It's great faith in the tru,hfulness of its
party leaders, to accept, without question,
the reports of the Secretary of the Treasury,
may believe fully the explanations that are
being sent out TO supplement the scanty
debt statement of the first of the month.
That debt statement was intended to show
thai the government has as available assets
the large sum Of more than $50, OOO, 900 with
which to meet all demands upon it. Asa
matter Of fact, wherever that impression
has been made there has been a deceived
person. If the treasury had at its command
$6O,O0O 900. or even half the amount, Secre-
tary Foster would at once, and with a great
deal OF satisfaction, call in and redeem the
"A per cents. amounting to about $27, 0O0.-
OOJ, that became due and payable Yesterday,
ls has been seen for months that there
would be difficulty in satisfying the appro-
priations of the billion-dolar congress and
the bondholders at the same time. In order
TO meet demands that could not be eyaded
the treasury has been declining to paw
many of the appropriations. some Of which
were of large amounts, the secretary tind-
ing it convenient to say that the appropri-
atoms were made out of money not other
wise appropriated and, as there was no
money In the treasury not otherwise APP
propriated, he could not pay the appropri-
alton. Several Indian appropriations, ag-
gregating probably S3.000,000, we're in
cluded in this category. The chance of
their being paid soon is very slim indeed.
Instead of calling upon the creditors of
the government wh) hold the AZ per cents.
to come forward and receive the face value
of their bonds, as the Secretary would do
If he had the money, he announces, as if he
were comforting great favor upon them,
that the time for extending the Ala per
cents. at 2 per cent. will be continued in>
definitely. That means plain enough that
he has not the money with which to pay
them, that he be allowed to pay unauthor-
lied interest, and that he must have time in
which TO save up the millions necessary to
discharge the indebtedness.
This situation makes the parade of figures
TO lead the people to believe that there are
$50, 600 of available assets in the treas
ury seem like very cheap and demagogic
trick. SO near the end Of his tether has
the secretary gone that he is considering
whether he shall not draw from the deposit
tories the sum of $4,000 900 with which to
meet the Immediate demands for redemp-
ton OF the 415-per-cents. Should he get
the 81, 900, 900 that he wants he will still
have several millions less than the amount
of the bonds outstanding. If the whole
amount outstanding should be presented at
once he would be embarrassed. Some reli-
ance is undoubtedly placed upon the for
bearance of the bondholders to come in
when Mr.. Foster is in better financial con-
dition.
The unofficial statements of the available
cash make it to be SIS, 900, 600, but to those
who DO not hold on to odds and ends of
doubtful character as do the statements
makers of the treasury, it appears to be Its
tie moro than $4,000, 000 This would not
he so bad, perhaps. if the income Of the
government were as good as it was year
ago, when Reeds business congress was
passing the bills that are bringing the treas
ury into awkward straits. AS it is the in-
come for two months for the present year,
with Its inflated expenses, is far behind that
! of a like period in the last year.
Already 1t is intimated that Mr.. Foster
| does not intend to attempt to pay all the
| appropriations made by the "billionn con-
| gress, but TO let them go over to be taken
| out of the revenues Of the next year. The
democrats of tho FifitY-second congress
| would be Obliged TO be economical for the
sake OF contrast and good example. but,
| with the remnants OF republican debt facing
them, it begins TO look as If they would not
| be in position to make generous appropria-
lions for many undertakings that need to
! have continuous support.
| Until Congress meets and some member
| shall call upon the Treasury to render an
! account that will be Ineligible, it will not
| be possible to tell how much short Of funds
the Treasury was in August, 1891, but
it is PLAIN that if ali obligations now due
were paid there would be q deficiency.
Trickery has served to keep from the public
the true state of affairs in the hope of
averting that proper indignation that
would be felt against the billion dollar con-
| gress and its managers if the exact truth
was known about the effects Of its extrava-
| gance.