Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1891-04-30
TREASURY MONEY.
Director of the Mint Leech Holds
That There is Plenty.
WHGT FUNDS NAY Be RIGHTLY USED.
he Claims That the Treasury is s25s, ,OOO,-
900 Better Than Empty-The Question
of Refundlng Bonds Touched
Upon.

WASHINGTON, April 2s.-Director Of
the Mint Leech, asked for an explana-
ton Of the statement made by him
Saturday that there was an available
cash balance of S25s, OOO, 600 in the
treasury, said: ~ hold that the
treasury owns some S25s, 900, 900 of hard
cash available for any legitimate ex-
penses. The money in the treasury,
which amounted to S751, ,OOO,O 600 on the
6rst Of this month, consisted OF two
classes, that which the government
holds as trustee and that which 1t owns
Il cannot consist Of any other kind OF
money. The gold and silver certificates
amounting Gncluding currency oert1h-
eatesl to S49s, 900, 900 represent
trust money-that is, the coin has been
deposited by individuals and the gov
ernment has issued a certificate to pay
back the same upon demand. Possibly
the fund Of s5, 900, 900 placed with the
treasury by national banks for keeping
their currency in good condition is trust
money; but as congress has just or
dered the money placed here by the ma
tional banks for their circulation to be
covered into the general balance OF the
treasury 1t is difficult to conceive why
this money is any more sacred The
remainder Of the money in the treas
ury, some S25S, 900, 900, is money which
belongs to the government as absolute
ly 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 belonged to the government
The 500, 900, 900 in gold, purchased by
the sale of bonds for resumption pur-
poses, was always included as portion
of the available balance in the treasury
prior to that date by all of the secre-
taries of the treasury. Mr.. Sherman
never set this apart as liability or
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 is
sued in the purchase of silver bullion
are any more a 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 govern
ment would be just as much injured 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 redeem one of the greenbacks in
gold upon demand. These notes are
not silver money, as people generally
suppose. They are issued in the first
instance in the purchase of silver bull
lion, but as they come back into the
treasury are reissued for all purposes
and are simply and purely new issue
of the old greenback.
''The fact that the secretary Is anX-
ious to convert all the assets of the gov
ernment into the most available form
of money is no indication that there is
any shortage in the treasury funds. So
far as the coinage of the trade dollar
bullion is concerned the coinage of that
bullion into silver dollars was ordered
by act of the last congress, and it is the
intention to coin it into dollars after
the first of July, whether the treasury
Is low or full of money. So, too, in re-
gard to the coinage of the subsidiary
silver coins, congress made an appro-
priation of $3.50, 900 to pay the loss Oh
such recoinage and just as soon as we
get some new design for our coins it
Is my intention to set the mints at
work on such coinage as far as the ap-
preparation will extend But none of
these matters have anything to do with
relieving any shortage in the treasury.
II the secretary should decide to extend
the ~ per cent bonds at the rate of 2
per cent it would simply be business
proposition as to whether it would be
more profitable for the government to
use its money in buying bonds bearing
4 per cent interest at the current rate
q problem which the secretary in his
wisdom will doubtless decide at the
proper time. But 1 imagine that the
recent order 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 matter Of fact some SIS, 500, 900
of the per cent bonds are in the treas
ury as security for national bank notes,
and the treasury would only have to
provide 10 per cent. of the cash re-
quired 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
tKs, which at the present price is not
very probable. 1t must be remembered
that when the banks pay the money to
redeem their notes, the money paid in,
under the recent act of congress, be-
comes Immediately an available asset
Of the government, while the national
bank notes themselves would come i7
very slowly for redemption.