Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-10-12
DEMAND now Is FOR PAPER MONEY
Increase in the Governments Re-
ceipts.
BANK NOTE CIRCULATION

the month.
The official statement of the gold reserve
Saturday was $l49, 134,O27. but this does
not include several sums of gold on deposit
in the New York subtreasury, which have
not been paid in currency, and sums which
have been promised at Chicago, but which
nave not been counted and covered into
the reserve. 1t is probable that the reserve
will touch $lG0,OO0.6D0 by the end of the
present crop season aud before the demand
fer small notes comes to an end. This de-
mand for small notes in the south and west
has proved a. powerful means OF bringing
gold into the treasury during the last few
months. The New, York banks have con-
siderable fund of United States notes lock-
ed up in the treasury against which they
hold currency certificates, which may be
Duailed of in case of strong pressure for
money. The amount Of the outstanding
currency certificates is now $Jl 100000,
which Is about $12,UO0,O60 less than at the
close of August. Some of the banks ihave
been drawing upon this fund in New York.
but others in tie south and west have pre-
ferred to offer large notes at the sub;reas-
ury counters or to direct the payment of
gold by their New York reserve agents in
exchange for CURRENCY shipments directly
from the treasury to them. The treasury
officials would feel no inclination TO re-
strict the deposit of gold in exchange for
paper II 1t w'.re not for the somewhat mar
row margin upon which they are working.
Narrow Margin of Currency.
The net cash balance Saturday was s2l3-
6t6.416 The deduction of the gold reserve
left only about $64 500, ocO in other forms of
currency. OF this amount $i3, 1856 152 is in
United States notes, which are mostly in
large denominations and are needed in this
fern fer clearing house settlements and
other purposes. Some of these Will be con-
verted into small notes if the pressure for
such currency becomes intense. The mar
gin of free silver against which certificates
can be issued stands at about S301U,U0O.
The amount was a trif1e less than this 4
few days ago and practically precluded
the further issue of certificates in exchange
for small notes. The fund of standard
II an notes is also at low ebb. now stand
ing at $6,556. 254. 1t is because of these
narrow margins of available currency THAI
Assistant Treasurer Jordan at New York
and other officials have not encouraged
large gold deposits during the last two or
three weeks. They do not refuse to re-
ceive gold under favorable conditions and
they expect further deposits to swell the
reserve during the remainder of the season
for moving the crops. They desire, how
ever. little leeway for these additions TO
the reserve without Gripping their power to
exchange large notes for small
The margin of $G4,500.000 above the gold
reserve would be twice large as would
be needed for currency exchanges IL il were
|
York. The existence of nine subtreasuries.
all OF which have to be provided with
funds, puts different face upon the prob
lem. 1t is necessary to carry a certain
amount of gold at each subtreaSdry, in or
der to meet possible demands for the re-
demption of Sherman notes, and to carry
in addition sufficient sum of currency to
cover all the demand obligations outstan l.
ing against the subtreasufy. This abscrbs
about half of the surplus cash balance out
size of the great centers CT New York ard
Washington and makes the present amount
only fairly adequate, in the opinion of the
treasury of1cials, in view Of the fact that
large demands have yet to be met.
The mint is now working actively Lron
the coinage of standard silver dollars, in
order to increase the fund held for reGen,p-
there is also an active demand for su,sid-
larry silver, which requires active coinage
work at all the mints.
Current Receipts.
The fact that current receipts thus far
during October have been running at the
rate of s25,0O),00O per month is probably
somewhat deceptive. Such fetal for Oc-
tober would exceed the receipts for Sep
TENDER by 100000 and the receipts for
August by Sc, 100000. The treasury officials
expect an improvement but not So large
an improvement as this. The total receipts
for the nine days ending with Saturday
were 81, f65 ,027, Of which S2,354 los was
from customs. 81 G60, 52:i from internal rev.
enue and $450.39S from miscellaneous
sources.
The backbone of the receipts thus con-
tinues 10 be found in the internal revenue
payments, which are due largely to the
new bottling law. The customs receipts
have been close to $5O0,OOo per day for
four out of the last five days and the con-
tiL uance of this average would afford a
total Of $lOO09.OO0 for the month. The Gus
toms receipts during August were only So
dnrinp q a
total Of $4,000 500 is probably more than
will be afforded by the complete returns
for the present month, but $9O00.900 is not
considered an excessive estimate. The in
ternaI revenue receipts have been running
at the rate Of s13, 100000 for .he month,
and may reach this total. The amount
during August was s11, 1913, 1876, and during
September, $12, 701 g76 Even receipts of
SIS. 100000 during the month will leave a
large deficit during October, since about
S.0UO,OOO has to be paid for interest on the
public debt and s12.0OO.O0O for pensions.
The Deficit.
The deficit thus far during October has
been $3424,9I2, and the deficit for the fiscal
year has been So. ,927. The deficit at the
end of the month will probably be about
So, Geo. but it will probably not increase
SO rapidly during November and Decem-
ber
The total receipts of the government
$34, S51 10 has been from customs, $47 G23-
SIG from internal revenue and $4931 Cos
from miscellaneous sources. OF the Gus
toms receipts, SIS. 457,610 were collected
during the first twenty-six days of July,
and were derived almost wholly from the
duties levied under the Wilson law The
remaining $19.4U,ON has been collected
during the eleven weeks of the operation
of the Dingiey law.
OF the internal revenue receipts en- the
other haLd. only ST. .OS5, SOB was collected
up to July 20. and $30,5O0.OOO has been COL
lected during the last eleven weeks The
total expenditures Of the government dur
ing the fiscal year have been $l19A7 I'll, of
which $43, IL. S33 has been for pensions.
$I2,20t ,343 for interest on the public debt
$40, 1857 for civil and miscellaneous pur-
poses. 22,243. dS3 for the War Department,
8. i29.1s4 for the navy and $2.G0GGo2 for
Indians.
Withdrawing bank Notes.
The national bank note circulation is
again tending downward, in spite of the
active demand for currency in the south
and west. The net loss in circulation has
not yet been great, because many notes are
still afioat for which lawful money has
been deposited In the treasury to cover
their redemption and retirement when thew