St. Paul daily globe., 1891-04-30
FOSTER TALKS MONEY
The Secretary Differs Slightly
With Director Of the Mint
Leach.
Secretary Blaine Calls Ex-
Senator Blair Back to
Washington.
The War Department Receives
a Letter From Two
Strikes.
Other Interesting Items as
Wired From the National
Capital.

WASHINGTON, April ga reporter
had talk to-day with Secre tary Foster
relating to the statement made by Di-
rector of the Mint Leach, that the gov
ernment had surplus, or available
cash balance, of some $780, 000, 200, and
to make this amount he counted in the
so-called gold reserve of 100,000,000 and
about SS4,000,000 of silver which was
purchased by the issuance of legal ten
der coin certificates. The secretary said
in substance: 81 saw Mr.. Leach's first
statement and said he might give it out.
did not see the second before it was
printed"
"Do you agree with him?'
81 guess he is right in the main.
think it is matter that may well be
discussed. l should have stated it a
little differently if l had been writing
it myself. l should have said that
some of the S250,OOO,OOO of available
cash might be regarded as trust funds.
might be, l say. 1t would be correct
to say that about seventy millions is
unQuestionably available cash-that is,
about $2S, 900, 600 in the banks, 21,000,-
600 of subsidiary coin, $1,000 in trade
dollar bullion, S12,000,000 of current
cash and S5,000,000 in silver against
which no certificates have been issued.
As to the 500, 1000 900 of gold reserve it is
held against the $3.50, 0,0O0, 900 greenbackS
to make the credit of the government
lmpregnable, for no one would be able
to get together enough greenbackS to
take all the gold out Of the treasury,
and therefore they do not take any.
But these notes outstanding are legal
tender, and the government can and
would use this gold reserve if it needed
to on pinch. 1t should therefore ap-
pear in the debt statement as available
cash."
"Do you regard the silver purchased
under the new act, against which Ger
tificateS have been issued, as available
cash that may be used by the govern
ment at any time ?"
No, do not agree with Mr.. Leach
there. The certificates are issued
against that, and it is in the nature of a
trust, but the profits on the silver pur-
chaseS, which amount now to some
S4,000,0 900, may be used. l am in diff
ferent position from that of my prede-
cessOrs, who have had a large surplus.
presume that during May and June
there will be an extraordinary eXpendi
ture for pensions coming in June-eX-
traordinary in that it will be probably
$4,000, 900 larger than last year. Now.
as to the redemption of the AZ per
cent bonds. l am thinking of trying to
substitute per cents for them, as Mr..
Window proposed. If it can be done there
will be two advantages in it over the re-
demption. To be able to float per
cent bonds will demonstrate the eXtraor-
dnary soundness of the government
credit, and the money that would be re-
quired to redeem the AIS may be used
for the purchase Of As at a saving of
per cent of the interest that would be
paid on them up to the time OF maturity.
talk about these matters freely be-
cause | believe it to be good thing to
have them discussed we'll and we'll I'M
derstood before they are tried. l am
getting good many letters from bank
ers and others. Some of them are silly,
but many of them contain valuable
opinions. If some papers criticize in
merely pastisan spirit 1t makes no diff
ference. / believe it is wise to talk
these things over with the public and
get the benefit ofthe discussion"