The weekly tribune. [volume] (Great Falls, Mont.) 1891-1894, 1891-06-13
WEEKLY TRIBUNE.
SATURDAY. JUNE 10. 1891.
MONEY WANTED.

per cent, mature and are payable neXt
September - ninety days from date
More than this, that amount of money
is needed by banks and business mer
throughout the country to move the
forthcoming crops. The government ha.
not the money in the treasury to meet
these demands. Secretary of the Treas
III. Foster met a large number of repre-
g. ,tjyes of banks and brokers in New
", couple days ago 10 consider The
mttirt. The result of the conference is
conl..acd in ii resolution which appeared
IN the Tribune's dispatches yesterday
morning. 1t was agreed that the time
for the maturing of the AZ per cents.
should be extended at a , per cent. rate
of interest. This resolution was unani-
mously adopted in the face of as quite a
unanimity of opinion among members of
Harrison's cabinet that they should be
paid Oft and not refunded at a lower rate
of interest. The fact that there is no
money in sight to make the payment
it looks at this distance as though the
government will be compelled to adopt
the suggestion of the bankers.
But where is the money to come from
to move the crops? That is the con-
dition which presents itself to the pco-
pie. and in the presentation the govern
ment is more or less concerned. While
it is not within its province to interfere
with the money market Of the country,
still it becomes absolutely necessary at
times for it to lend Il helping hand to
tide business over rocky places. This is
the way it is done. The revenues of the
cuuntry that is the money received for
import duties-goes into the national
sub-treasuries where it remains until
drawn out upon government orders. In
case Of a tight money market relief can
be afforded two or three ways. One is
by anticipating the payment Of interest
upon outstanding bends. This throws a
great deal of money into circulation.
Another way to get this tied-up money
out Of the national sub-treasuries is by
the purchase of unmatured bonds by
The .rcrnment. BIT those means can
not be resorted to by the government
simply because the sub-trcasuries as
well as the national treasures are com
paratiyely empty.
However. Secretary Foster has a
scheme of his W to raise the wind.
There are SlOU,O0O,OOO in gold set apart
by the government as a reserve fund to
secure the redemption, when necessary,
Of the nations paper currency. Now
there are about ~o3J0.00O.000 treasury
notes in circulation secured by that $780,
100000 in gold. If to get out of a tight
pinch it be found necessary to use this
money, Secretary Foster considers he has
a right to draw upon it. The doubtful
ness of such an expedient is apparent to
every man who values a security for the
United States treasury notes which he
may pass to his credit in his bank ac-
count. The secretary may also obtain a
few millions from another source.
The government has 52S. 100000 on de-
post in the national banks of the coun-
try. During Cleveland's administration
when the national treasury was groan-
ing under the weight of its surplus and
the people were demanding more money,
this money was placed in the banks and
loaned out to business men. 1t tided
the country over "a very critical period.
That money is still in the hands of Dor
rowers. Foster can call it in if he wishes
to, but its withdrawal from trade
channels at the present time
will be attended by grave consequences.
He must do it or draw upon some part
Of that SlOO,00O,0OO greenback redcmp-
ton fund. for he must raise S2G,OOO,OOO to
meet pension payments due this month.
Some little money will flow into the
treasury during the month which may
be applied in these payments, but not
enough to relieve the situation of its
gravity. This is the condition of the
government finances at the end Of two
years of Harrison's administration.
When Cleveland made way for the
present executive Of the nation the GOV
ernmcnt had a cash balance in the treas
ury of nearly 3~lJO.O00,0O0. The exact
figures are 5li9.J}J.l7S. On the follow
ing December the fifty-first congress met
with a republican majority in both
branches. This gave that party full con
troll Of every department of the govern
ment. Let us see how it managed the
financial affairs of the people. At the
end Of six months after the fifty-first
congress met in 1889 that magnificent
treasury surplus was reduced to less
than s%39,OOO,OOO. At the end Of two
years it vanished altogether, and the
most favorable estimate which can be
made shows that the government will be
short nearly S%lOO,OOO,OOO to meet the
enormous expenditures 49, aggregating
81 0OO OD1 D0O which tbof nooct avtr,vo