Democratic Sentinel, Volume 5, Number 40, Rensselaer, Jasper County, 11 November 1881 — NATIONAL FINANCES. [ARTICLE]

NATIONAL FINANCES.

Abstract of Treasurer Gilfillan’s Yearly Report. , The report of- United States Treasurer Gilflllan for the fiscal year ending June 30, 1881, shows an increase in the receipts over those for 1880 from every source. Increase in customs, $11,637,611; internal revenue, $11,255,011; sales of public lands, $1,185,356; miscellaneous sources, $3,177,702; total increase, $27,255,681, which, added to the net redaction of $6,930,070 in expenditures, makes an increase in the surplus revenue of $34,185,751. The net revenues were $360,782,292, and the net expenditures $260,712,887. The excess of the receipts over payments was $100,069,404, of which $90,872,261 was expended in the redemption of the public debt. The balance in the treasury increased $48,C 67.603, from $203,791,321 at the beginning, to $252,458,925 at the end of the fiscal year. The amount expended on account of interest and premium on the public debt ran down from 498,652.895 m 1880 to $83,569,989, a reduction of $14,982,905. The balance standing to the credit of disbursing officers and agents of the United States with various offices of the treasury, June 30, 1881, was $24,936,307. The receipts for the fiscal year on account of the Postoffice Department were $39,757,664, and the expenditures $38,544,935, of which amounts $24,702,703 were received and expended directly by Postmasters. The unavailable funds in the treasury amount to $20,521,632, an increase since the last report, - by reason of taking up certain items previously carried in cash. At the close of the year there was held by the Treasurer in United States bonds $360,505,900 as security for the circulation of national banks, and $15,295,500 as security for public deposits in national-bank depositories. During the year $276,899,700 in bonds was deposited for these purposes, and $277,527,350 withdrawn, exceeding by far the transactions of any former year. CURRENCY OUTSTANDING. The amount of United States currencv outstanding at the close of the year was $362,539,437 ; redeemed during the year, $71,069,974. Total redemptions since first issue of currency, $2,300,141,073. United States bonds amounting to $85,304,050 have been retired during the year. The aggregate retired by purchase, redemption, conversion and exchange, from March 11, 1869, to the close of the fiscal year, was $1,983,344,800. Coupons from United States bonds of the value of $22,797,667 were paid during the year, and quarterly interest on registered stock funded loans, amounting to $44,455,790, was paid by means of 395,105 checks. National-bank notes received for redemption during the year, $59,650,259. Tho aggregate redemptions, under act June 20,1874, have been $1,099,634,772. OLD AND SILVER. Comparing the condition of the treasury Sept. 30, 1881, with the condition the same day last year, the most striking changes are the increase in gold coin and bullion and standard silver dollars on hand, and in silver certificates outstand ng. Deducting gold certificates actually outstanding, the gold belonging to the Government Sept. 30, the last four years, was $112,602,622 in 1878. $154,987,371''in 1879, $128,160,085 in 1880, and $169,552,746 in 1881. The gross amount of gold and silver coin and bullion held by tho treasury, without regard to obligations outstanding against it, ranged from $163,969,444, in 1878, to $222,807,368, in 1879. to $214,303,215, in 1880, and $269,706,998, in 1881. Theincrense last year was $55.4'10,000, of which $39,150,000 was in gold, and $16,250,000 in silver. The increase in gold was greater and in silver less last year than any year since the coinage of tbe standard silver dollar began. Tbe United States notes on hand slightly increased last year, notwithstanding the urgent public demand for circulation. The amount on hand above the amount required for payment of clearing-house certificates is $20,000,000, against $18,000,000 a year ago. The practice the past year has been to make 10 per cent, of all payments in silver dollars or certificates, 40 per cent in gold coin and 50 per cent, in notes. To this rule there is one important exception. Under an arrangement between the treasury and the New York Clearing House all payments by the treasury to this institution, aggregating $275,000,000 a year, mu-t be made in gold coin or United States notes, Standard silver dollars not being receivable under its rules, although silver certificates are now being paid it by the treasury to some extent in large denominations, in lieu of gold coin, for use in the payment of customs dues. Aside from any personal views as to the expediency es reviving the silver dollar, the Treasurer says it would seem unwise for any branch of the Government to encourage an arrangement by which coin, which the law has made full legal tender, is discredited. The gross assets of the Government, including funds held for redemption of gold, silver and currency certificates, is $331,981,210, having increased more than $64,000,000 last year, and larger than on the corresponding date in any year since 1878. The increase is due in chief part to deposits on account of silver certificates, which amounted to $45,600,000. THE RESERVE FUND. In referring to tho reserve held for the redemption of United States notes, the Treasurer says: There is no provision in the law requiring specie reserve for redemption of United States notes. In the preparation for the resumption of specie payments a fund was created in the treasury under section 3, Resumption act of 1875, by the sale of $95,500,000 in bonds, and the accumulation of surplus revenue to protect outstanding notes. The amount of this fund has never been definitely fixed, but it has been maintained at about 40 per cent, of United States notes outstanding. It has usually been assumed that a reserve of 40 per cent is sufficient for the protection of United States notes, but, under the method of computation, the reserve is not merely 40 pet cent, of liability represenied by United States notes, but also 100 per cent, of all other liabilities. So far as go’a, silver and clearing-house certificates are concerned, it is necessary, under the laws authorizing their issue, that their full amount should be set aside in gold, silver and United States notes, respectively, as funds for their redemption, but as to other liabilities there is no such obligation as this, and it is submitted no higher reserve is required for thair protection than is required for the protection of United States notes. In the changed condition of trade and commerce, unless some calamity shall overtake the nation, there seems to be no probability of a run upon the reserve of the treasury. The total demand for coin in the redemption of United States notes aggregated since redemption but $12,029,086, and no notes whatever have been presented for redemption since February, 1881. THE SPECIE RESERVE. Should there ever be a run on the specie reserves of the treasury, United States notes will be made the basis of demand, and not the other matured obligations, which compose the very varied current liabilities of the Government. The excels over demand for liabilities of the Government, other than United States notes, is shown by a tabulated statement to be $146,443,491. Considering these liabilities as a whole, the Treasurer says; “It is dear that whatever percentage the reserve will protect United States notes will protect tbe other liabilities. The Treasurer does not attempt to say what this percentage should be, but is of the opinion that a uniform percentage should be fixed for all current liabilities other than the three classes for certificates, and the excese of cash in the treasury should be expended, from time to time, in the purchase or redemption of the public debt, according to some definite and publicly-announced plan. Should tills be done the policy of tbe department would cease to be the subject of speculation and influence in the treasury, and the money market would be reduced to a minimum. During the last two years 'there has been a steady increase in outstanding notes of denominations of S2O and under, and a proportionate decrease in notes of higher denominations, hundreds alone excepted. STANDARD SILVER DOLLARS. The total amount of standard silver dollars coined to Sept. 30, 1881, under the act of Feb. 28, 1878, is $98,322,705, of which nearly 34 per cent, is in circulation and the remainder in the treasury. The amount coined but year was $27,753,955, of which $9,589,420 went into circulation and the remainder are in the treasury.