The Big Stone post. (Big Stone Gap, Va.) 1890-1892, 1891-06-12
UNCLE SANS TREASURY.
The Exhaustive Demands to be made on
1t Will Leave Nothing of the Trouble
some Surplus.
Matthew Marsl,alI1

Matthew Marshall
For the first. time since lSSl the Treas.
nry OF the United States finds itself rcall,
stratened for cash with which to meet its
maturing obligations. Even in 1881
when Secretary Window had to resort to
brilliant strategic device to stavc off the
payment of the bonds due that year, there
was at his disposal $780, 900, GEO Of avaia-
bic money with which to back up his
threats of redemption, and except in 1881
the Treasury has been at all times, since
the war, closed, more than amply provided
ior every emergency. II is true that in
1883 Treasurer Jordan lost his head and
made ridiculously frantic appeal to the
banks of this city to aid against what he
supposed was grave impending peril,
but which, as The event showed, WAS en-
tircly imaginary. He became alarmed
because his stock Of gold had run down to
81 5000, 600, but he had no such payments
TO provide for as confront Secretary Fos-
ter His fright occurred, too, IN August
and not in June, and neither was there
then so heavy a pension list to be taken
care Of, nor were there maturing bonds to
the amount of $5l 100000. Mr. Jordan
was descrvcdly laughed at by all sensible
financicrs for his groundlcss anxiety, hut
Mr. Foster has their sincere sympathy.
not only in his official perplexity but in
his desire as citizen to avert what may
become widespread disaster.
According to the official statement for
May 20 the net balance in the Treasury on
that day was about $l0000,0G0, and the
balances in the national bank dcpositarics
about $23, 900, 900 more, making $33 ,00o,-
600 in all. To this is added in the state
mcnt, $20,000,O0 of fractional ccin and
currency, which swclls the apparent total
available balance 10 $53,72l $40. Apart
from the facts that fractional coin and
currency arc useless for payment Of sums
Of more than $40, and that nearly the
whole Of the balances in the national bank
depOsitarics arc needed for current bust
ness, the statement omits to mention that
the Treasury has assumed the responsible
ity of redecming $43,000,000 outstanding
national bank circulation for whicli it has
received the greenbacks, and which is
coming in for redemption at the rate OF
81 100000 per month. Practically, there
fore, the Treasury has no balance al all
beyond the 500, 100000 in gold set apart
for the redemption of the grccnbacls
In view of this condition of things. ard
of the enormous requirements for pension
payments in August and in September
the announcement by Secretary Foster CT
his readiness to pay off on Sept. ! the
S5l 100000 Of AZ per cent. bonds matur-
ing that day exctcs both my surprise and
my curiosity. I am surprised that he
should have been so prccipitatc in max
ing the announcement, instead OF waiting
as he had the right to do, until he knew
more certainly than he can know at pres
emf what his resources are going to be on
Sept. |, and curious to see how he Will Jul
fill the undertaking he has assumed. HIS
circular contains n suggestion that he
would like to extend a portion of The ma
turing nUHuS dt l VI 20 ~
annum, and some Of the national bank OF
GERS of this city have assured him, | see,
that if he will make the rate per cent.
not only will they extend theirs, but tlai
of other national banks of the country
will ioin with them in buy ing up and cX-
tending the entire $5l ,O00,GOo. If they
are right the Secretary ought not to let
such trinc as the half of per cent. per
aunum stand in the way Of so easy so!u,
ton of the difficulty, and probably he Will
not. but doubt very much the correct
ness of their judgment. The banks may
possiblv extend the $2G 1000 which they
themselves hold but even then the ~ per
cent. in cash which they will get on the
S23. OO0, 600 deposited for circulation may
when the time comes round, be worth so
much more to them than the promise OF :
per cent. per annum that they will prefer Ter
the cash and as the remaining SD "oo'Coo
they are not likely to pay out that amount
in buying them up at par i'll order 10 STt
90 ner cent. of circulation upon them. II
the Secretary expects to repeat to WIN 'nc
outside holders of this $2l 800, oo0 the eX-
nloit of Secretary Window in 1851, he
makes a mistake. The conditions are
quite different now from what they were
then. and, in any case there is Il large on
ference between 3 = per cent. which Sec
retary Window offered and the per cent
which Secretary Foster is hardly Wiling
vpt TO allow.