Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-11-23
CONDITION OF THE TREASURY
Treasurer Morgan's Statement of Our Finan-
cial Condition.
The Raid on the Gold Reserve En-
planned With Its Results
Present Situation.

United States Treasurer d. ~ Morgan
| has submitted to Secretary Carlisle the an
| nual report on the operations and condition
| of the treasury. The net ordinary revenues
| for the fiscal year ending June 30 were
$237, 722, ,Ol925, a decrease of sSS O97 6O9 So as
| compared with the year before. The net
ordinary expenditures were x}67 ,525, 219 So
| a decrease of $15,952, ,67I.66 Including the
public debt, the total receipts on all ac-
| counts were s724, ,006, 53S. .4G. and the expendi-
| lures SOS oOS, 552. 1s
The treasurer remarks that the impair
| ment of the gold reserve, rendering neces-
| sary the issue of bonds in February, was
| caused chiefly by the depletion of the treas
ury resulting from insufficient revenues.
Even when the supply of paper had become
| so reduced that the treasury was obliged to
| pay out large sums of gold in the ordinary
disbursements, the coin was freely returned
| in the revenues. The proceeds of this loan
were $1S6Go,OOO in gold coin and certifi-
Gates, but during the month of February
| there were redeemed $19,20U,OO0 of notes in
| gold, presumably to meet subscriptions to
the loan, SO that the net gold proceeds
| were about 39JOO,OOO. This, together with
| gain of s1,5OO,OOO in gold from ordinary
sources brought up the reserve, during the
| month, from ST., 5,6OO,OOO to s1O6. 10000, while
the net assets of the treasury, with an eX-
cess of N,OOOOOO of expenditures over re-
ceipts TOR the month, increased from $l25,
100000 TO $l1I,OOO0OO. During the succeed
ing months till the end of the first week
in August, the reserve was affected by de-
ficient revenues and Withdrawals of gold
for export, the movement abroad having
been stimulated by the necessity which the
treasury was under of furnishing to ex-
porters new full-weight, after the supply
of old pieces had become exhausted. The
lowest point touched by the reserve was
So, lS9,iOo on August I, 1894.
Reducing Gold Reserve.
Prior to July, 1892 the gold reserve was but
little affected by Withdrawals of coin, there
having never been any considerable demand
for the redemption of notes. Even when
gold exports were heavy the metal was
furnished by bankers from their vaults or
was obtained from the treasury for gold
certificates, of course, without impairment
to the reserve. During the last two years,
however, the treasury has been called upon
to furnish nearly the whole of the require
ments for expectation, and there have re-
Gently been considerable Withdrawals for
other uses. To the end of September last the
total redemptions of United States notes in
gold since the resumption of specie pay
ments We're Slsl 100000, and the total re-
demption OF treasury notes in gold from
their first issue We're S6S,5D0,0OO.
Demand for Notes.
With reference to the retirement of
treasury notes the treasurer says that
been able to provide for the redemption
of treasury notes in silver dollars out of
the holdings of free silver, so that there
had not been, up to that time, any i'm
pairment of the total amount of the sill
yer fund accumulated under the act. On
the Sd of that month, however, the silver
dollars and bullion in the treasury had
become reduced to the amount required
by law to be retained for the payment of
outstanding treasury notes and certificates,
and the demand for the redemption Of
notes continuing in consequence Of the
scarcity of small denominations of cur
rency, it became necessary to draw upon
the dollars coined especially for that pur-
pose. The silver fund being thus impair
ed, the notes so redeemed were Cancelled,
in order to preserve the required equality
between the silver in the treasury and
the notes outstanding. The total amount
of the notes retired in this way up to Oc-
tober 81 was 81, 190,434.
The amount of the new issues of United
States paper currency put into circulation
during the year was s3Jo. 1853. 100, having
been exceeded but once, in 1892. The
amount of worn and mutilated notes re-
deemed was $319002.290. This also has
been exceeded, but once, In 1898. The to-
tai paper circulation reached its highest
point in May last when it stood at ST.
113OoO.0DO. Since then there has been a
slight contraction, caused chiefly by the
gradual redemption and retirement of gold
certificates, the issue of which was sus-
pended. as the law requires, when the gold
reserve Of the treasury fell below one hun
dred million dollars.
Recent operations of the treasury in pre-
pairing and distributing the supplies of
currency demanded by the public have
been conducted with much less difficulty
than formerly, the reason being found in
the greater ease of the currency situation.
A considerable share of the autumn de-
mand for small notes has been supplied
this season by local bankers, without as
SiCtancQ
dents or the treasury.
Notwithstanding a change in the regu-
lations. whereby senders of national bank
notes for redemption were required to bear
the charges for transportation, the re-
demptions were the heaviest since 1885,
amounting to Sl05,OOO,00O, or more than
half Of the average circulation.