New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-05-28
THE NATIONAL FINANCES.
WISE MANAGEMENT BY THE HARRISON AO
MINISTRATION.
AND ECONOMICAL METHODS
WHICH HAVE BEEN ADOPTED.
tBY TELEGRAPH TO TIL, TRIBUNE

BUs1NEssrIKE AND ECONOMICAL METHODS
WHICH HAVE BEEN ADOPTED.
tBY TELEGRAPH TO TrBUNEr
Washington, May GA few days ago IL was
shown In these dispatches that the Increase IN inc
volume Of the foreign trade OF the United states
during the Administration OF President Harrison was
not only phenomcnaly large but practically unprece-
dcnted. Consplcuonsy successful as have been t'e
services rendered 10 the country by President liar
Iison I'm the extension OF foreign commerce, they
are cqualled II indeed not surpassed, by his prudent
SagadOns AMI conservative management "' '''o
public finances.
The public debt statement OF March I, 1885,
showed that there were outstanding on that day
SGs1 .l3a 900 pei cent and TlG2,s42,.Oo 1i-S
per cent bonds The market prices OF the two classes
were 100 and 1O5 respectively. The available balance
I'm the Treasury, BY the method OF stating IT then IN
vogue, was S72007.4oS. The use which should be
made OF this amount, every dollar OF WHICH was
unnecessarily withheld from circulation, was one OF
the most important problems to be considered by
President Harrison. At the time industrial and com
mcrcal conditions did not require the Immediate dis
bursemcnt Of this available balance; ana In view OF
the high prices OF bonds prevailing 1t was determined
not to adopt any policy which would encourage the
holders OF bonds expect greater profits from their
sales TO The Government. Therefore no change In
the method OF purchasing bonds at first adopted
but I'm April purchases Of As were resumed
II has been the practice OF the Government for many
years In purchasing bonds, to include the accrued in
terest in the price paid This Is the method OF The
Stock Exchange. After consulting secretary Window,
the President determDed to take advantage OF this
method to reduce by degrees the rate Of premium on
the bonds until 1t should carry the prices down TO an
equitable point. Accordingly he directed the Treasury
Department ~ decline all offers at advancing rates
aud to accept such bonds only as were presented at
regular prices waiting for the accrued interest to eat Its
way into the premium the bonds. II was not long
before the dealers discovered this and, recognizing the
power Of the Government to fix It's own price within
reasonable limits gracefully surrendered The result
was that during the succeeding fifteen months there
were purchased S5,074,700 per cents and $685.
sol $50 IL per cents at prices constantly de-
Cllnng. -
The able management OF National finances during
the eventfil summer of 1890 undoubtedly averted a
serious disaster 1t Is to repeat the details
Of operations whereby, within tho brief period Of
ninety days nearly 300 100000 was expended for the
relief OF the country in the purchase Of bonds and
prepayment Of interest
The prompt and effective manner I'm which these
payments were made during the summer Of 1870.
showing that It IS the policy OF President Harrisons
Administration to sustain all interests at critical
periods was one OF the most potent II the causes
which enabled tho county. within the calendar year
Nations without appreciate disturbance Of business.
Sinic March l. Iss0. there have been purchased or
redeemed $3.50 O03 $50 United states bonds nj
penditure Of $2o63l603l. The cost Of these bonds
to the United states Mt maturity, II they should have
remained outstanding would have teen 1851 ,660424 H.
The saving. therefore. by their purchase is S5o.352,
tg3 81 and the annual interest charge has been re-
duccd from S3i.516.2l9 20 10 322,s03sTl 30 a dc
crease OF SlI ,6s4,34s 60 than 80 Is per cent
GIRO ULATION.
Ono OF tho most important public questions OF the
is That relating To the supply u money The amount
circulation per capita in 1850 was Hi3 81; In 1861 IL
was si39s In 1865 II $50 81 Mar,h l. 1885. 1t
was sc3 o. on March l. isSo ~ e23 o. and Oh My
l. 1872 s24 10 The amounts OF money IN eircu-
Iaton on the dates specified Were follows:
3$Hy FL: Fl? s$s IS
Mar$S is $50 Ss 1855 ssS
May l. 1892 L6i357o,2 pa
Il will De seen from these figures that. beginning
with the advent Of the Republican party In 1851 down
to i-sj there increase in the amount Of money
I'm circulation Of 1920. with an increase per
c,plta Of az O6: that this Increase during the four
years Of Democratic rule only 5llI4j0,S3I thur
producing a decrease per capita during that period Of
cent while the increase during the succeeding three
years and two months was 500. 3GG.3iS, with per
capita Increase OF 81 90.
DEPOSITS ~ NATIONAL BANKS.
The balances OF public money with National bank
depo,itaries March /, 1852 including $i564,os2 rep
resentng balances I'm the hands OF dibursng officers.
Amounted In the aggregate to S+S. SO9l 3d. Only
about ST. 900 900 of this then actually required
for the proper conduct OF public business aud the re
mainder was simply surplus revenue. when was al
lowed 10 remain deposit with these banks instead OF
bclng withdrawn and used 90 reduce The public debt
The task II recovering this money from the National
hanks without disturbing trad, and industrial rcla
,iop. has b,.cn n most difficult and delicate one, but II
ho, been accomplished. There is now In the hands
OF the banks only the amount actually needed for the
proper transaction OF public business with these de-
posliarlcs
COLLECTION or THE INTERNAL REVENUE.
That the Internal Revenue Bureau under the Admin
lstrntlon of President Harrison has been conducted
width view solely to attain the best results possible
is manifest frcm the following facts; and In their
sIdcratlon Il should be borne In mind that these
suits have often been attained only after sumountng
great difficulties.
The spread OF population has made It necessary to
incur expenses for officers at points where before they
we're not needed and nj other pnnts there has been
Increase In bulness making necessary correspond
ing increase in the force where before 1t quite
limited.
The act Of Congress imposing tax on ocomargarine
nlaccd upon the Bureau n large amount 0t additional
labor I'm the collection Of small tax. the amount Of
WORK Involved being much greater than that required
or the collection OF the tax oh articles on which the