Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-04-29

what He Has to Say About the Finance a,
the GOverument

the 00verumenf
NE fAU ATTENTION TO THE RECENT srArr,rrr-
OF DIRECTOR OF THE MINT LErcH-raopABI,
aKFUNDrNa OF TEE MATURING rou. Ann
AAIFs INTO TWO PER CENT BONDS.
STAB reporter had talk today with Secre.
Aty roster relating to the statement made by
J director OF the Mint Leech concerning tbs
ssese OF the finances Of the government
IN this statement, IL will be remembered. Mr..
Leach held that the government had surplus.
or available cash balance, Of some s250, 600. 600
and to make this amount he counted in the so.
called gold reserve Of s100, o0o, 900 and abou.
eS4,ooo,OOO OF silver, which was purchased by
she issuance Of legal-tender coin certificates.
IN speaking Of this the Secretary said in sub
stance:
Il saw Mr.. Leechs first statement and said
no might give IL out. did not see the second
before it was printed"
| DO you agree with himf'
| II guess he ID about right in the main, I
mink 1t is matter that may we'll DO discussed.
! should have stated ii little differently il I
mad been writing 1t myself should have said
'nat some Of the $25o, 0o0, 600 Of available
cash might be regarded o. trust funds
nagaa be, say. It would be correct to ssv
tnst about seventy millions il unquestionably
available cash-that ia, about twenty-eight mil.
Mons In the banks twenty-one millions Of sub.
.'oiary coin, four millions in trade dol
ar bullion, twelve million of current
casn and i've million in silver against
"hicn no certificates have been issued.
THE GOLD RESERVE.
AS to the e10o, 0Oo, 900 Of gold reserve It is
heid against the ESQ, 900, 600 greeubacks to
make the credit Of the government impregna-
ole, for no one would be able to get together
enough greenbacks to take all the gold out of |
sne treasury, and therefore they do not take |
any; But these notes outstanding are legal |
.enoer ana the government can and would use |
suis Soio reserve II II needed to on a pinch. II |
should, therefore, appear in the debt state
ment as available cash."
DO you regard the silver purchased under
sne new act against which coin certificates
lave oeen issued, as available cash that may be
useo py the government at any timer
-, No; do not agree with Mr.. Leach there
ne certltcates are issued against that and il ia
IN u, the nature of trust but the profits on the
~ saiv na purchases, which amount now to some
e4,VOO,OOO, may be used.
my predecessors, who have had large sur-
pIus presume that during May and June
suere VIII be an extraordinary expenditure for
Z ensons coming in June-extraordinary in
asst year. oo' '-"A
TWO PER CENT BOND. |,
NOW as to the redemption Of the AZ per
'ent bonds l am thinking of trying to substi-
ute per cents for them, as Mr.. Window nro. I
POSED. II 1t can be done there will be two adj
'antages in 1t over the redemption. To be able
noat per cent bonds will demonstrate the
extraordinary soundness of the government
redit, and the money that would Be required =
redeem the AS may be used for the pur- .
nase OF As at q saving Of 2 per cent Of the in a
ime Of maturity. ~ W
"a: tax about these matters freely because I
eneve It to be good thing to have them dis. A
used well and well understood before thew
re tried l am getting a good many letters
ION to-, bankers and others. Some of them are .,
NY, put many contain valuable opin-
,hs II some papers criticise in merely a par Il
san spiri: It makes no difference. behave II a
wise to talk these things over with the pub. G.
snd get the benefit Of the discussion" =,