The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-12-30
They Put Money i'm the
Treasury.
UNCLE SAM is BENEFITED.
Money Orders That Are Lost and
Never Duplicated - Treasury
Notes Destroyed.

Merchants sometimes maks money in the
same way, but the amount is incou slider
able. If merchant gives check in sat-
isfaction of an obligation and the check is
lost, the loss can be proved and the
amount recovered by the man to whom
the check was given. Sometimes it hap
pens that man gives check which is de-
siroyed and which never comes 20 light;
and possibly the man to whom the check
was issued never makes a claim for the
money. But as was said this happens 80
seldom that The profit from this source is
one to which no business man would give
any consideration in figuring out the pos
sibilties OF a season. Uncle Sam, on the
contrary. can figure out pretty well before
the beginning OF fiscal year that so many
thousand dollars will be put to his credit
on profit and loss" account before the
year is over. This profit will come from
bonds and bank notes destroyed and never
presented for redemption. from money
orders which are lost and never dupli-
Gated, and from stamps which are not put
to the use for which they were intended.
These profits are never cast up. because
debts of the Government are seldom out
iawed. But they are AS real IS though
they were credited TO Uncle Sam on the
books of the treasury.
OF course it is no fault of the Govern
ment that this profit accpmuates Every
effort is made to ind the an to whom the
Government is indebted and every reason
able opportunity Is given 10 him to claim
the amount Of the Indebtedness. In the
case of lost or stolen bonds he has simply
to prove ownership and give an indemnity
bond to protect the Government against
loss. In the case OF a treasury note In
jured by fire he has to send in the charred
remains and the treasury experts will
decipher as far as possibla the value of the
pile (its original value) and the money will
be restored to him. IB the case OF a money
order, both the remitier and the remittee
are advised again and again that the
money remains unpaid. Still claims
against the Government aggregatng MANY
thousands are left unpaid every year and
the total OF even the last thirty years will
run up into the millions. Even in the
matter of unpaid money orders the Gov
eminent has just made an accounting of
81, 100000 earned in the last thirty wears
ana now turned into the Postoffice Depart
ment fund, probably never TO be repaid to
its owners.
The greatest source of unearned income.
of course, is the destruction of treasury
notes. Nearly fifteen millions of dollars
has been made by the Government up to
the present day, as nearly as can be esti
mated. by the destruction of treasury
notes. Two years ago last August
lively controversy arose between Mr.. Fos-
ter, then the Secretary of the Treasury.
and some of the members of the House
and Senate concerning the amount of
monev In circulation at various times. as
stated officially by the Treasury Depart
ment A letter was addressed by Hon.
John Davis TO The Secretary of the Treas
ury, charging that in the treasury
statements. among other things, no
allowance was made for the wasting and
loss of coin and the destruction of green
backs and coin certificates. Therefore he
contended that the statement of money in
circulation was incorrect each year by
the amount OF notes and coin DESTROYED
Mr.. Foster, replying, said that the depart
ment had no authority 10 deduct an esti-
mate0 amount or lost coin and notes from
the total of its liabilities. He denied that
there had bean any considerable loss, and
said that the to.al estimate at that time
for the period ending January 1. 1894, was
less than twelve and half millions. Here
is the statement in detail of the notes and
certificates issued by the Government.
estimated TO have been destroyed beyond
ell possibility OF redemption, to January l,
1891:
Ueited States notes S5,41O,54l
silver Observation-Disclosures. 447,004
National bank notes .................. 6.394.555
Total. S12, 452 100
Mr.. Huntington, the chief of the loans
and currency division of the Government,
estimates that not more than one or two
millions has been destroyed since Janu-
arv l, 1891. The carelessnsss which pre-
vailed during the war period, he says was
responsible for large amount of the miss
ing money, and the destruction now, while
it increases in proportion to the increase In
the amount of money issued, is not so
great prop rtlonately as it was at that
time. 1t amounts, proba bly,, to less than
half million dollars every year.
AS to the amount represented by unre-
deemed coin and abrasons of gold and
silver coin, that would be hard to estimate
accurately. 1t is estimated that 100000
worth of silver coin is used every year in
the arts, and as the coin value OF this is
only about 100000 the Government makes
$4,000 by the transaction. There is about
S60,OO0 worth of abraded silver coin pur-
chased during year at its bullion value
and recoined, and on this the Government
makes the difference between The face
value and the bullion value, less the cost
of coming. The amount of silver and gold
coin which has disappeared from circula-
ton, and which will never be presented
for REDEEM ption. cannot be estimated. In
the case OF the gold coin there is no profit
to the Government represented. liz the
case of the silver the profit is 20 to 40 cents
Oh each dollar, according to the value of
silver when the dollar was coined.
OF the issue of $50, co.. 600 worth of bonds
which has just been made certain pro-
portion will never be presented for re-
demption. The Treasury Department
could figure in advance if the Secretary
wished 10 do so just about what the profit
on these bonds from this source would be.
The value of :he missing securities of the
United States now outstanding which Will
probably never be presented for redemp-
ton is about S1.250.000 according to Mr..
Huntington. These Obligations date back
to 1847. A series OF $3.50 bonds was issued
under the bounty land scrip act of 1S47,
and even now at long intervals, these
bonds come in for redemption. But the
number is very small There are still out
standing about $500 worth of these bonds.
The loan of 1862 amounting to nearly
$500 000, 900. was called between 1871 and
1875 but there is still 1920, 200 of it out
standing. -Four Thousand dollars worth of
these bonds, called March 20, 1872, came In
for redemption during the past year. They
had drawn no interest for twenty-five
years
OF the loan of June 1864, there is still
outstanding SIG. 400; and none of it has
drawn interest since 1876. There is $24. $50
of the loan of 1866 the 5-20's) still out The
last of this was called in 1877. OF the con-
soils of 1865. called between 1877 and 1879,
there was $4,000 worth presented for re-