The herald., 1898-11-04
WHEN THE YEARS BUSINESS rs
FOOTED UH
IN SPITE OF EXPENSES Of WAR
The Till of the Nation Is Stronger at
the Close Than at the Opening OF
the Fiscal Year
Associated Press Special Wire

has submitted to the secretary of the treas
ury the annual report on the transactions
and condition Of the treasury for the past
fiscal year. The net ordinary revenues oil
the government were $405,3zl $50, an IN
crease of $57, ,597 $50 over those OF the pre-
vious year, while the net ordinary ex-
penses were $443 POS, ,5S2, an increase OF
$77, ,594 ,423. Tbs resulting deficiency OF
$3S, ,0l7, PAT exceeds that of the preceding
year by $l@994, 4,793.
In tho receipts are included $64, 75l %.
paid ihto the treasury on account of the
sale OF the Union Pacific and Kansas Pa.
clic railroads. Out of them were paid
$29,S50,952 of the bonds issued for the con.
struction of the Pacific railroads, which
went to increase the expenditures.
Up to the close of the fiscal year the in
crease of the expenditures on account of the
war with Spain was $43,04l, 1872 for the war
department and $24, ,2O2, 43S for the navy
department.
For the four months of July, August, Sep
tember and October, 1898, the expenditures
OF the war department were Sl07, ,52O, 1865
being $Sl,6l3, ,l3l greater than for the same
months in 1897. For the same three months
this year the navy department expended
$27459,577, which was $l6,0l4, ,O26 moro than
it spent in the like period of 1897. UP 10
October 81, the war with Spain added to
the disbursements of these two depart
independently of the prospect of revenue
or expenditure the treasurer regards the
treasury as having been stronger at the
close than at the opening of the fiscal year,
the insignificant shrinkage in the amount of
the assets having been more than com
pensated for in the improvement which
took place in this character. Against net
loss of S7,500,0O0 in the total holdings avail
able for the fiscal operations OF the govern
n al rd Is n r.
100000 in free gold, coupled with an in
crease of nearly $23,000000 in absolutely
secured deposits with banks, and these
changes We're effected at no greater cost
than the loss of so much in silver and treas
ury notes.
The total available assets were 1914, 764,
377 on June 80, 1897, and $S39, COG. 1856 year
later. BY the addition of the unavailable
assets carried by the department these to-
tails are sweled TO 1904, AL ,776 and SS40, ,202,-
04l, respectively. On June 80, 1898, the
treasurer's liability to the general treasury
fund was $575, 75l 1868, with one of $685. 1885,
100 sustained in his capacity as the depos-
itory OF public officers, and one of 1868
Alb for moneys paid into his hands but not
yet covered by warrant into the general ac.
count.
In every year during the period of the
movement OF the troops there is a demand
IN the producing parts OF the country for
small notes. BY forethought and care dur
ing the past fiscal year and the autumn an
adequate stock of notes OF different denom-
nations was provided and the exchange of
small notes for large was readily made.
The outstanding notes of the denomipa-
tions Of $40 and under, which decreased in
volume by Sll ,522,l57 from September 80,
1886, to the same date in 1897 increased by
$4l,657, ,037 in the twelve months ending Sep
tember 80, 1888. The gold in circulation
rose steadily by S49,327 1858 in the former of
the two periods, and by $9i, ,55l ,059 in the
latter.
The, total currency of all kinds in circula-
ton shows an increase of 96,539 $40 in the
former year, and one of Sl37, ,775, ,S54 in the
latter, gain Of 1924, ,294, l03 for the two
years.
In answer to inquiries from the west and
northwest the treasurer has prepared table
which showe the amount of the capital, sur
plus, undivided profits and deposits of the
national banks in the territory north of the
Ohio, and west of the Mississippi, in July, in
each OF the last three years. The aggre-
gates for the three periods are successively
$923,979,546, S9lS,252,479 and $987, $40, ,l66
While these figures do not show the re-
sources OF, this sort in their completeness,
they furnish irresistible proof of the
strength under which this immense region
has gathered in the instruments of COM
merce.
In chapter in which the treasurer re-
views the history of the net gold balance in
the country he says that prior to September
I, 1898, the highest point which this balance
has ever attained was $2l9,O59,232 on April
Bird, 1898. On June 9, 1893, the amount was
SS95,S9l ,3G4, the lowest in fifteen years, or
from June, 1878. BY the exchange of notes
of gold with the banks, the net gold balance
was brought up to $l03, 1863, 300 by August 10,
1893. Another minimum mark was reached
February |, 1894, at S654 ,347 ,657.
l3V the nrOcepda of n ala of bonds anoup
ing to sos, ,6G09l7, the net gold balance was
increased to $l07, ,4l6,S02 by March 9. I'm
der reaction, however, it again fell to S54,
975,6O7 by the end of July, 1894. Another
sale OF bonds in November and December
OF that year brought in S5S,7l9,7l0, and the
gold balance on December 4, 1894, was again
Sill, ,l42,02l. The remedy was effectuai for
only brief period, for on February IL, 1895.
the, treasury held only Sal, $40, Isl in free
gold. Again, bonds were sold, for which
ceived from February to June. Thus the
net gold balance was carried up to sl07, ,59l, ;
230 by July s, 1895. Once more the relief
was but temporary, and by February 8, 1896,
the gold. balance had fallen to $44 ,543 493.
For the fourth time resort was had to sale
Of bonds which produced up to June SILL
355,6l2, and brought the gold balance up to
maximum Of $l2S, ,7l3, ,700 from which point
it sank again by July %, 1896, to $S9, 500 ,975.
Since that month the reserve of 800, 900 has
not been trenched upon With some fiuc-
.tuations, the tendency of the gold balance
has been steadily upward. The tenders of
gold from banks and individuals in ex-
change for paper have been greater than the
resources Of the treasury have enabled it to
accept.
When it became obvious by the sudden
close of hostilities that the demands upon
the treasury would not reach the magni-
tude for which provision had prudently been
made, the secretary determined to deDosit
large share Of the proceeds of the popular
loan in national banks in all parts Of The
country. BY this process the funds. while
ut all times available for the use of the goy
ernment, remained in the channels of trade
The balance standing to the credit of the
treasurer on this account on the 3lst of
October was $65, 10000 The result of these
methods Of dealing with the situation has
been In all respects satisfactory and the i'm.
mense financial operations of the war hove
been conducted so that the money markets
have been in no degree disturbed at any
time. ""'
The only change of Importance in the nub
lie debt was the payment of 500, $50. .952 of
the Pacific railroad bonds. The Remainder
of this loan outstanding on June 3Otb woe
Ga, $50, all of which will be payable after
Jan. l, 1900. N''e'
The gradual increase of the circulation of
the subsidiary silver coins, which has drov,n
down the treasury holdings Of the lost III
teen years from $29,00000O ia little over
S9000,00O, the treasurer says, viii soon mako
it necessary to provide further sunnlw of
this class of currency A noticeable improve-
in ha oh, ,nc ,.,.