The evening times., 1897-01-18
THE BIC TREASURY DEFICIT
1t Causes a Reduction of the
Note Reserve.
THE GOLD RESERVE GAINS
Some Anxiety Occasioned by the Con-
ditton of the Paper Money Hold
ings-Silver Certificates Piling
Up Faster Than They Can Be
Counted.

The gold reserve OF the Treasury has
been climbing upward lately as rapidly as
the Treasury yofficialsthink desirable in view
OF the growing scarcity OF legal tender
notes. This reduction OF the note re-
serve in the Treasury is due partly TO
the large deficit, and partly to the deposits
OF gold in exchange for paper currency.
The gold reserve gained S705, ia on Sat
urday, and stood at $141, ,791 ,9S4.
The largest gains, which were slightly
reduced by losses at other points. were
$657 ,O70 at Chicago, ILL.,, and S98 ,1O1
at the nints and assay offices. The de-
posit OF gold at Chicago will compel the
immediate shipment OF rev supply OF
legal tender notes, which have been in ac-
tive demand there.
The United States notes held In the
Treasury ON Saturday were $21 ,432, ,737,
and the Sherman Treasury nUtes were
$35, ,262, ,226. Nearly $50, 900 900 Of the
Sherman notes are locked up in this city,
and are not available for pa yments at the
subtreasuries unless prompt measures are
taken 10 transmit them there.
The condition of the paper money hold
ings of the Treasury has been causing
anxiety for some days past. Silver Ger
uficates are constituting from 60 to go per
cent Of the daily customs payments at
New York, and the banks there receive a
constantly swelling supply from their cOun-
try customers.
The result has been to pile up silver GER
tificates in the Treasury faster than they
can be handled by the clerical force pro-
yided for their redemption. The amount
thus held on Saturday at the Treasury and
its branches was 81 14,O43 ,563, which is
about $4,000, 900 more than the usual
margin representing certificates in transit
and in process Of redemption.
1t is feared that the Treasury Will soon be
confronted by the necessity Of paying out
gold where silver certificates are not ac-
ceptable. The silver certificates con-
stitute the bulk OF the notes which are in
small denominations, and while they are
not a legal tender, the Treasury Is able to
dispose OF them to those who wish small
notes. Gold is not usually desired for the
ordinary obligations OF the government,
and the Treasury has no disposition TO re-
dUce its gold supply If it can be avoided.
The redundancy Of currency under present
conditions at New York, it is feared, may
promote gold exports if business conditions
10 not CndhSe.
The enormous balance oftrade in favor Of
the United States during the past calendar
year is a factor which is expected to re-
dUce the demand for commercial bills, but
it is felt that transfers Of gold viii depend
more upon tine interest rate than upon the
credits which the United States may have
abroad.
The Treasury reserve is in a condition
to meet considerable losses Of gold, and il
the gold withdrawn is replaced by cur
rency in tine Treasury it is hoped that this
automatic action may arrest gold exports
before they cause any alarm.
The deficit in the Treasury accounts thus
far this month has reached the high figure
of 81 81 OIL, as the result Of the quarterly
interest payments. The elimination ofthese
to the amount Of Sc, ,464, 600 would reduce
the deficit sho wn for the month to a nominal
figure but the redemption Of Pacific Rail-
way bonds has withdrawn several millions
from the Treasury which do not appear in
the deficit
The Treasury receipts for sixteen days
have been S13, ,71O,S2S, OF which S6,393.-
1873 has been from customs, S5,S41 ,507
from internal revenue and 81 ,476, 50 from
misc eIlaneous sources. The remaIndeT Of
the month contains as many business days
as have already passed, so that receipts
may be calculated at about S2T. 200, 900, a
marked Improvement over November and
December.