The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1898-11-04
GOVERNMENT FINANCES.
annual Report Of United States
Treasurer Roberts.
ORDINARY REVENUES AND EX-
PENDITURES HAVE INCREASED.

How the War was Financed without
Dis urbing the Currency OF the
Country So AS to BE Harmful to Bust
ness-Paymeat of Pacific Railroad
Bonds.
Washington, November 3.-The treas
urer of the United States, Hon. Ellis d.
Roberts, has submitted to the Secretary
of the Treasury the annual report on the
transactions and condition of the treasury
for the past fiscal year.
The net ordinary revenues of the govern
ment were S405, s2l, 1856, an increase OF
$57, 597 .63u over those of the previous year.
while the net ordinary expenditures were
SAB, 1858, 5s2, an increase of $77, 594, 423 Up
to the close of the fiscal year the increase
of the expenditures on account of the war
with Spain was $45, 04l, 732 for the war de-
par tment, and s24, 1852, 43S for the navy
department.
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. Against net loss of $780, 600 in
the total holdings available for the fiscal
operations Of the government, there was
gain of upwards of S26, 000. 600 in free
gold, coupled with an increase of nearly
$23, OO0, 900 in absolutely secured deposits
with banks. and these changes were
effected at no greater cost than the loss of
so much in silver and treasury notes.
The total available assets were Ss74, 764,
377 on June 80, 1897, and $3.50, 606, 7St q
wear later. BY the addition of the I'M
available assets carried by the depart
msnt, these totals are swelled to 1904. ALI
576 and 1868 ,202 94l respectively.
On June 80, 1898, the treasurer's liabili-
ty to the general treasury fund was $775,-
isl. 1858, with ono of 500, 400, 160, sustained
in this capacity as the deposltary OF pub
Iic officer and one of SIS, 9o6, 4lS Tor money
Skinned into his bands, but not yet
covered by warrant into the general ac-
count. In every year during the period OF
the movement OF the crops there is de
mand in the producing part OF the
country for small notes. By forethought
and care during the past fiscal year and
the autumn following it, an adequate
stock of noIes of different denominations
was provided and the exchange of small
notes for large was readily maize. The
outstanding notes of the denominations
of twenty dollars and under. which de.
creased in volume by Si1,52z,l57 from
Septem Der 80, 1886, to the same date in
1897. increased by Sal, .0S7 In the
twelve months ending Septen Der ~, 1928.
The gold in circulation rose steadily by
SAG. a27, 1853 in the former OF the two
periods and by 1914, 55l ,059 in the latter.
The total currency of all kinds in circu-
lation shows an increase of S6 5.s. 249 10
the former year and of Sl37, 200. s54 in the
latter, gain of 1884, 3y4, lO3 for the two
years.
The report reviews the history of the
net gold balance In the treasury, showing
how it was brought up four times py
sales of bonds, which in eaoh instance
proved effectual for only short period
By July ~, 1896, the gold balance had
fallen again to SS9, 669, $40. Since that
month. the reserve of 500, 900, 600 has not
been trenohed upon. With some huotua.
tions, the ten ency of the gold balance
has been steadily upward. The sources
of supply have been the mines OF tne
Northwestern STATE S, Alaska and Aus
tralia, with importations from Europe
the customs and the boards of the banks
Until the beginning OF the year 1895, ths
receipts of gold at the New York custom
house were q negotiable quantity. but
since then after some fluctuations they
have increased until they reached in o.
0O6T 100 pGT CcHu VI unC WAO3o
The tenders of gold from banks and in
dividuals in exchange for paper have been
greater than the resources or the treas.
ury have enabled it to accept.
The report states that the increasing
product of the war revenue act, coupled
with the proceeds of the war loan, gave
fise to an apprehension that the drain
upon the currency OF the country mlRno
create striugency which would be harm
fuI to business. 10 prevent such result,
arrangements were made to prepay in
terest on government bonds and to redeem
Pacific railroad bonds before they fell
DIRE.
When it became obvious by the sudden
close of hostilities that the demands upon
the treasury would not reach the magnl-
Snde for which provision had been made.
the Secretary deposited large share OF
the proceeds of the popular loan In
national banks in all parts OF the country
Nv this process the funds, while at all
times available Tor the use of the govern
n,ept, remained in the channels OF trade.
The balance standing to the credit of the
trea surer on this account on the 3ist OF
October was sos, 750, 500. AS result OF
these methods, the immense financial
operations of the war were conducted SO
that tue money markets were In no degree
distur bed at any time.
The only change of Importance in the
public debt was the pay ment OF $29, $50
g5a of the Pacific raiiroa bonds The re-
mainder of this loan outstaD ding on June
30 was $l4, 1873, $50, all OF which Will be
payable after January l, 1899.
The gradual increase in the circulation
of the subsidiary silver coins, which has
drawn down the treasury holdings of the
n, int the last fifteen years from $29, 900. 0OC
10 a little over $4,000 ZOO the treasurer
saws. will soon make it necessary to pro-
vide further supply of this class of cur
rency. A noticeable improvement IN the me
chief circulating medium indicated by
the diminished number of counterfeit
notes and silver coins presented at the
treasury offices is counter balani ed IN
part by the large increase in the spurious
copper and nipkle coins in circulation,
principally in the cities of New YORK.
INK