New-York tribune., 1891-04-30
THE NATIONS FINANCES.
WHAT MR.. LEECH. THE DIRECTOR OF THE
MINT, REALLY SAID.
HE HAS NOT ADVOCATED THE ABOLITION OF
TREASURY RESERVES AND SAFEGUARDS
"A PLAIN STATEMENT OF
PRESENT RESOURCES.


nv partisan critics TO give an entirely misleading and
,rsneable construction Of recent statements made
hv Mr. Ieech, the Director Of the Mint, as TO the
r,csent condition of the United states Treasury For
ol.cal purposes Mr.. Leech has been represented as
sdvocatng the abolition Of all Treasury reserves and
.aseeuards and as undermining the whole system OF
ruhno credit. Mr. Leech, on the contrary. has
done nothing but to give statement of the
rrcsept condition and resources of the Treasury,
showing 20 what slight extent alarmst reports OF
iupendlng bankruptcy should be credited. With Mr'
Ieechs facts and figures the readers Of The Tribune
are already familiar.
In what follows. the Director Of the Mint replies
. ,be hostile criticisms on his former showing, and
mnlihes and supplements his previous presentation OF
tbe actual assets available in the Treasury MI
Ieech said to-day
~What have said, and what maintain, in regard
N the resources OF tho Treasury is substantially thae
the appropriations of the last Congress- aside from the
refund OF the direct tax to tho loyal States nave cut no
t0ure In the reduction OF the cash balance In the
treasury for the that they arc not yet avail
abe The real OF the rapid disappearance OF tne
socaled surplus has been the extensive purchases OF
the nterestbearing debt at COST from March l.
1850 10 March 81. 1901, of S267,7599o1, TACT un-
narael In the history of the Government ana 50
neenant with benefits that l forbear TO enumerate
them.
aTbere is no depleted Treasury Even according
m the present form of exhibiting the cash. the net
cash balance belonging to the Treasury at the close
of business on Saturday $54,134,227 and /
ventured the opinion that the recent action OF the
Secretary In stopping the purchase Of bonds was IN
ruenced more by desire 10 husband the resources OF
tlo Treasury in view Of possible conditions OF the
autumn money market (as well as for sinking 1uhu
purposes during the next fiscal year, than from any
present lack of funds So, also, said that in my
Judgment the consideration which would nhuence the
action OF the Secretary in regard TO the redemption or
extension at a low rate Of interest Of the IL per
cent bonds maturing in september would be a OuSi-
ness consideration whether il would be more pronaDle
10 the Government to use its money in the purchase OF
the As
In support of this the very important fact was
stated that of the total amount of 12 per cents out
standing OO0 S23 293, ,45p are on deposit with
the Treasury to secure the circulation of National
Banks not to mention the So 6030OO on deposit TO Sc
gre public moneys, and that unless the banks should re-
place these with per cents, which at the present
nce II is generally conceded they would not do, the
hanks themselves would not only have to furnish 90
ner cent of the money for their redemption but that
under recent act of Congress the Treasurer could
use that money for indefinite PERIOD as ue
actual redemption Of the circulating notes would
necessary cover a period Of years. So that, as a
matter Of fact the banks themselves would pracucay
furnish the money for the redemption of the 1-2s
That il the statement of cash in the Treasury, as
shown BY the public debt statement, was prepared TO-
day in the same that it was exhibited by every
Secretary OF the Treasury from Mr. Sherman to Mr.
NcCuoch on March l. 1885, ii would show an available
cash balance considerably $2OO,O0OOoO There Is
nothing very startling or original about this prop
ostion. Whether it accurate or Inaccurate is sus-
ceptlble OF ready determination
at is o well-knOwn fact that the available cash
balance as shown by the debt statement Of March /,
1885 viz. 1852 0j2, was parcelled out into lot
Of reserves funds and liabilities on April l,
1885, for the purpose Of making the available cash
appear as small as possible. reference to the debt
statement for the two months named is conclusive Oh
this point There authority of law then, ana
there now, for parcelng out the available cash
ip the Treasury in this manner and return TO the Ola
form of stating the cash would not only be in strict
conformity to law but in accordance with good COM
nonsense
at must be borne in mind that statement of cash
IN the Treasury is not statement Oh the resources
and liabilities of the Government. If 1t was, all inc
liabilities of the Government, all of its debts wheter
hearing or Notwithstanding, would neceS
CARLY he classed as q liability, and there would DC
Larger deficit in the resources OF the uoVcrn
ment The statement referred TO Is esSeIi'i"ii'
statment of the cash in the treasury in-
tended to show, in connection with the IreasuIers
statement of assets and current liabilities, the aou'
of money in the Treasury, what kind OF money IL
consists Of and what portion of it is avaliaole lor to
exnenses of the Government N0tmng shouIu aPPo"i
In 1t as liability which is not demand haolits "
meet which it is actually necessary to SET asue a
the cash in the Treasury, signed by Hugh McOuIo0'
on March l. 1850 il will be that the only current
liabilities deducted from the cash III the treasury
we're the trust moneys that is, gold, silver ana
currency certificates, together with about S'oooooo
- n,atred debt and interest All the rest of the cash
,ppeared as an available balance The same Is the
90 With all the debt statements issued by Mr. Sher-
nan Mr. Window (when he was the secretary uhder
Sarfeld) Mr. CoIger Mr.. Gresham and Mr. McCulloch'
1851 surely it cannot be presumptuous orhoVeitodu
ocate return 10 form of cash statement presented
n the public over the signatures Of these distinguished
men. .
In regard to the items themselves, the so-callen
.raserves funds and liabilities which now de-
Quoted from the available balance, hold that many oi
them have no place in the statement Take Tor instance
the 800 900 deducted from the available balance
as reserve fr redemption of legaltender notes AS
Is well known, this money was accumulated IN inc
Treasury nv the sale of S9 100000 Of bonds ana tat
an additional amount Of about Si0000,OOO was re-
tanned from surplus for tic purpose OF specie
resumption The Resumption act Of 1875 contemplaleu
the redemption of the legalend notes. tha lS' er
destruction as redeemed as it contained no provision
for their reissue and in express language repeated all
provisions Of law inconsistent with IT, But Congress
explicitly directed by the act Of May 81 1875 III
shall not be lawful fr the Secretary OF the treasury vi
other officer under him TO cancel or retire any lho0
OF the United states legaltender notes. Ana wheh
any OF said notes may be redeemed or be received INTO
the Treasury under any law from any source "haI-
ever and shall belong to the United States, they shal
not be retired cancelled destroyed, but they snail
be reissued and paid out again and kept In clrcua'
ton.'
There was nothing in the law Of 1879 which pro
vided that 100000 600 any specific amount should
be accumulated much less that the sum named should
be held as reserve Tie only possible ground ior
treating IL as specific against tRe greenDach
s contained in the provision in the banking ACT Of
1880 that the issue of gold certificates shall be sus
pended whenever the gold in the Treasury falls below
nOOOOO.OOO A sum equal to the total amount OF
the new lecaltender notes issued under the Act OF
July II, 1890 amounting at present TO some S4o'-
OOOO00 is deducted from the available eash' Oh INC
theory that these notes are demand LIABILITY These