Evening star., 1900-10-03

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gress forbade the treasury to collect ii.
and 1t stands on the books as unavailable
funds, S2S 10l,644.
Odd Schemes.
Pad as the actual experience was, il was
no. as vicious or as grotcsque as some meta
ods of dealing with the surplus suggested
in those days. Secretary Woodbury., In
1894 urged "a temporary investment IN
some stocks sound and salaD.c The next
year he favored investment for provl-
dent fund" In 1928 he recommended ''pur-
chase of state stocks as III the Indian trust.
Think of the treasury going into the mar
ket to buy slDO,G0H.atD in stocks, and when
it needed funds ard therefore general
strngency prevailed, offering us securl,ieS ,,l'
for sale to unwilling buyers. The Indian
trust fund illustrates how state bonds nave
been suffered to sleep undisturbed by pay
ment of principal or interest
Other plans by the same secretary were
TO designate various officers in the several
states including postmaSters. to act as
fiscal agents, and again to appoint com1nis-
sIoners or receivers general TO collect ana
disburse public funds.
The Independent Treasury.
Discussion resulted in the passage, July /,
1870 of President Van Buren's project for
an Independent treasury, which the wings
repealed August-1 of the next year Inc
treasury so poor that the banks de-
rived little benefit. Congress tried to set
up q fiscal bank and month later a fiscal
corporatio to take the place of the Bank
of the United States; but both were crush
ed by vetoes Of President Tyler. Angus
IL and September 9, 1S4l. His own ran
tastic scheme of a board of control or eA-
chequer not unlike the cumbrous device OF
the Continental Congress, met with Scant Ia
vor and is known only to curious students.
From a Bank of the United States, from
local banks as sole repositories from ue
po.its of public funds with the states, from
multifarious schemes. crude dangerous. un-
workable, Congress turned II not IN despair
in necessity TO an independent treasury
whose previous career had been so bref
The act of August q. 1876 stands to TINS
day and its methods have prevailed longer
than any other device for handling the
finances of this government. Inc mamie
nance of nine branches In diherent parts ol
the country solves the problem of exchange
on both receipts and disbursements, ana
brings payments close to the people BY
the designation of depository banks 10 re-
ceive the postal and the internal revenue, n
the friction of collection is reduced to the
minimum and the drain of funds from 10
calities is prevented.
The Loan of 1898.
If proof were needed that the time Is past
when single bank is needed TO place gov
ernment bonds, the Spanish war loan OF 1878
affords it abundantly. The zeal OF the
banks in subscribing for that loan hVe
times over deserves all praise Tor their
LOYALTY and devotion, and the praise should
be extended freely and graciousiy. BUT the
offers in small sums from individuals We're
twice the amount called for. The foatins
of that loan without discount and at a cost
of only one-fifteenth of l per cent for print
ing and distribution records both the pa
frfn of he DPODle
lence of the work of the treasury.
Two Years of Surplus.
For two years our financial problems
have related to the surplus. The Spanish
war cost much less than the estimate. Cen
eral prosperity has given large revenues.
The Secretary of the Treasury has had to
decide what to do with S11S,OO0 600 of un-
used funds, for the treasury was able to
spare so much from quick resources, and
vet to retain about $5OO00,OOO in it's own
vaults That is about the cash kept by the
British exchequer in the Bank of England;
the sum was f10,61600O last month. Be
sides our government needs large amounts
within quick reach for emergencies.
The task was to serve the government,
and to respond to the frequent and some
what urgent appeals for the relief OF the
money market. The prepayment of interest
could be only a transient measure; bond
holders showed no desire to accept interest
in advance on rebate.
successful. Offers were put out November
Is, 1899, to buy $25. 200, coo in old fours and
fives at the prices then current, and pur-
chases were made of $40, ,300.65O In May,
1900 the Secretary of the Treasury gave
notice that the tWos of the funded loan of
1891 would be paid on presentation and in
terest would stop on them August 1S. By
that date Si3, ,231. $50 had been paid of the
total of $25, 1864 $50, and on October /. $4,215,
$50 remained unpresented, free of interest.
Exchange of Bonds.
The largest contribution Of relief, how
ever, was by the act of March IA, 1900.
That provides for the exchange Of threes,
fives and old fours for new consols of per
cent. During the six months which have
elapsed such exchange has been made to the
amount of $s32, III $40, which is 3a.5I per
cent of the bonds eligible, to wit: $S39. 49,
$40. OF these redemptons. $7633T ,U1o-was
In threes, being 3S4 per cent of that class,
$a,2 e599OO in old fours. 3716 per cent of
that class, and s53 120,95O in tves, being
5591 per cent of their total last March. In
the exchange the treasury paid out S33, l69-
0Sa and "a net saving of $S,41S,26o was made
to the government in the transactions, while
there was no increase of the public debt.
The treasury, September IA, held of bonds
subject to exchange S23,s17 $40 for circua-
ton and Si0,3 ,0S0 for deposits. For these
new consols may be given, and If that We're
done they would become S395. 81, $50 and
the net saving over ten million dollars, with
payment in premiums of $i0,0e0,0j1.
AS consequence of the provisions of the
new financial law the bonds pledged for ma
tional bank circulation up from $2.S9
94I270 on March IA to $29S IL, $50 Septem-
ber 10. The whole volume Of bank notes,