Omaha daily bee., 1889-07-01
THs NEW Fiscal YEAR.

THE NEW FISCAL YEAR,
The governments new fiscal year be-
gins to-day, and the appropriations Of
the last session OF congress. amounting
TO nearly four hundred mill dollars,
become available. The disbursements
from the. national treasury for July are
usually larger than for any other month
of the year, and they are very sure to
be so for the present month. For one
thing there will be an extraordinary
demand upon the pension appropriation
to take up the vouchers issued In ex-
cess Of last years appropriation. In
some other directions, also, the treasury
will pay out more than il is usu-
ally called upon to do in July, and per-
haps only in the case OF the interest on
the public debt will 1t disburse less
than has been the rule. The beginning
of n fiscal year necessitates II certain
amount OF readiustment to new condi-
tions. There must be balancing OF old
books and new accounts opened, and
while tho treasury system under which
all this is done is very nearly perfect,
the force of the department will have a
decidedly busy time for few days, per-
forming the vast amount OF routine
work which the change imposes
upon IL.
There is some interest I'm finan-
cial circles regarding the question
whether the incoming OF the new fiscal
year will bring about any change in tho
policy Of the treasury. which thus far
under the present ad.ministratio has
been kept very close to the lines of its
predecessor. Will there be any de-
parture in tho matter OF bond purchases
and in that Of allowing considerable
amount of public money to remain on
deposit with the banks? The secretary
Of the treasury has during the past four
months declined to permit the bond
holders to dictate the price which the
government should pay for bonds. Will
he continue in this course, or having
the necessity before him of pro-
viding for the sinking fund, which will
require the purchase of bonds to the
amount OF about forty-five million dol
lars, will he deem it eXpedient to pay
better prices until this amount is So
cured? The Importance of the action
of the secretary in this matter is in the
question whether the sum to be thus
drawn from the treasury shall be dis
tributed over many months or be
largely or wholly disbursed in time to
meet the increased currency require.
ments OF the fall business, and undoubt-
edly this consideration will have
weight in determining the. policy
of the treasury. So far as the
deposits with the banks are concerned,
it is not believed that these will be sud-
denly disturbed. They have been some
what,reduced under the present ad-
ministration, and it is not probable that
their withdrawal will be more rapid
than it has been.
1t is impossible to predict with any
degree of certainty whether the autumn
demand for money will be materially, IL
at all, greater than last year, and if it
should not be much increased, the re-
sources of the money market will be suf-
fcient to meet it without extraordinary
assistance from the treasury. There
has been contraction of the circula-
tion during the past two months, but
it is still more than twenty millions in
excess OF this date last year and much
greater than it has been at other
periods of marked prosperity. The
general feeling in financial circles ap-
pears to be one of confidence that the
policy of the treasury will be guided by
what shall appear to be the financial
needs Of the country and will be such
| as to prevent any serious disturban ce
of the money market resulting from the
locking up of money needed in the
| channels of business.