The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-05-01
LITTLE Cash ON HAND.
Despite Fosters CHEEKY Front Sc
rious Financial Complications
Arc Imminent
He Has Not Been Telling the
Whole Truth in Recent
Interviews.
The Billion Dollar Congress Directly Re-
sponsible for the Strsitencd Condi-
tion Of tho Treasury.

WASHINGTON. April N.-Under date OF
Monday last a correspondent writes: In
the face of what everybody knows to be a
serious financial condition, Secretary Eos
ter keeps q stiff upper lip and insists ma
the treasury 10 all right. 1t is to he hoped
it is, if only for the benefit OF Mr.. Foster,
who ia 40 saneuine. To-day the net cash
aurulus in the treasury is reduced to inst
$40. 200, GOO by the payment Of direct tax
claims of over $1,000, goo. Probably to-
morrow Pennsylvania will get her draft for
al, 600. GOO, which will reduce the surplus to
about as, SOC. 600. In the meantime revenue
receipts are steadily falling of and not less
than SIS, 900, 900 has to be provided to meet
pension claims in less than six weeks.
Where is it coming from? Like Mark Tap
lev, MI. Foster puts on a CHEEKY front and
declares that he is all right. He says he
has x7O,O 600, 900 to work on. This is not OK
actly true, and it is not at all true in the
sense that he has available funds to that
amount to draw from. Here is the approxi-
mate condition of the treasury to-day at
noon:
Actual cash in treasury. .$lo,2 Oo, geo
Subsidiary com Sa'ooo'v ~
Deposits in banks $4,000
Bullion go. h,oW,Wo
silver dOll4rS against winch III paper on
has been issued. ~..,....."..--.. A'ooo'Vo
Total 4,.Oo.NU
OF this sum the subsidiary coin Is worth
less to meet obligations. 1t is chicken feed.
The S10,oO 600 of coin and bullion can be
used, but the question is, can the $23,oOO.OW
deposited in banks be called in without
creating a tremendous financial disturb
ance? The causes of the present stress are,
frst of all, reduction of revenues; next, pen
-.zur z,l Aha vvna nf fha direct t2y.
When the direct tax act was passed it was
thought that the bulk of the claims would
not DO presented for several months. and
the clause requiring action by. the state
legislatures was inserted for the express
purpose of extending the payments over n
that legislative action would be delayed IN
many instances 10y reason of the fact
that the Legislatures would not be IN
session. Unfortunately. however, the lee1s-
latures of Illinois, New York, Pennsyl-
vania, Ohio and Massachusetts are in SEES
sion and have presented their claims for
payment. Thusf far about 600 has
been paid On this account. 1t is likely that
at least Is per cent. of the entire $17.o00,00
which is to be refunded will be dlsbursed
within the present fiscal year.
How the pensions and other large ray
ments which will be presented between this
a"d the last days Of June shall be INST IS
what is puzzling treasury officials. Score
tary Foster is said to be considering a plan
to have the banks take the fractional coins
in exchange for current funds, but ii all the
fractional coins were converted into current
funds the relief would be merely temporary
and would not be sufficient to meet the pay.
ments of pensions in June
The situation ID daily becoming more
alarming and Que that must soon change
Mr.. Fosters confident smile into an omi-
nous frown. 1t may even cut short the
presidential junket. Already the first evil
dcnce of scare is i'll the secretary's circular
stopping the redemption of four and one
half per cents. The reason for that is
cloaked, but everybody knows that the sec
rotary does not dare go on redeeming these
bonds in advance. He has not the money
to do IL with. Not only has to meet the
pension call in June, but in Jnly the quar-
terly interest on the four per cent. loan
must be met. which amounts to xb.595, 600.
thus, with $50. 0u0, 600 of assets, of which
moro than one-third is unavailable, and
with steadily declining customs receipts,
the treasury will be called upon before the
LIST of July to pay at least $33s, DOC, ZOO.
1t is no wonder that the underlings OF the
treasury, like Mint Director Leech, are
called Upon to pat forth fantastic state
nents, which, while intended to allay sus-
picien, only exotic dsrision. Mr.. Lsech
gave ept Saturday, q statement that 1.-The
United States has in its vaults to-day, in
good, hard money, ever $25S, 00o. 900 avail
- aAAy III II lCSlh4Ai'to oApoAnoo VI
the government" Unfortunately Mr..
Leeoh does not point out whore this large
sum of good, hard money may be found.
The treasury contains in gold and silver
coin nearly $7G0,00O 600. but like other as
sets this is almost entirely covered by out
standing certificates and other obligations.
There is a fund of BOO, 900, 1000 for the re-
demption of United States notes,
but Mr.. Leech would hardly aavo-
cate the use of that to meet the
current demands of the treasury. 1t does
not help the present condition of the treas
ury to talk about what use has been made
of the surplus in the past. 1t is true that
the bonded debt has been reduced nearly
SIP, GOO, 900 since the lat of July, 1890, but
that fact. however creditable it is to the
administration, does not change the fact
that the treasury at the present time,
through the action of the last congress, ii
placed in the position of being barely able
to meet it's current obligations and is ser
iously threatened with a deficit before tbs
close of the current calendar year.