Daily Kennebec journal., 1898-11-04
OUR FINANCES.
No Fear Of Bankruptcy for
the United States.
Large Increase in Revenues and Treas
ury in Healthful Condition.
Cost Of War: s4s.o4i.7s2 for Army; s24,.
xe2,4ss for Navy.

Washington, Nov. 3.-The treasurer
of the United States, Hon. Ellis H.
Roberts, has submitted to the secre-
tary 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 gov
ernment were $405, 1921, 1886. an increase
OF $57 ,591 $50 over those of the prevl-
Gus year, while the net ordinary eS-
penditures We're s443, 1868, 5S2,, an increase
Of ST., ,594, 42S
Up to the close of the fiscal year the
increase of the expenditures on account
Of war with Spain was $43,04113o for
the war department and 4,262, ,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 open
ing of the fiscal year. Against a net
loss of $7,500,000 in the total. holdings
available for the fiscal operations OF
the government there was gain of
upwards of $26,000000 in free goll,
coupled with an increase of nearly $23,
000.000 in absolutely secured deposits
with banks and these changes We're eff
fected at no greater cost than the loss
Of so much in silver and treasury notes.
The total available assets were $S14,-
764,377 on June so, 1897, and $S39. .6O6, 1856
year later. By the addition of the
unavailable assets carried by the de-
partment these totals are swelled re-
spectively to 1904, 441 $40 and $685.. .202,
941. On June so. 1898, the treasurers S
liability to the general treasury fund
was S775,751, 1868, with one of $66, 465, 16O
sustained in his capacity as the de-
positary of public officer, and one OF
s2e, ,9S6. 413 for money shipped into his
hands, but not covered by warrant into
the general account.
In every year during the period of
the movement of the crops there is q
demand in the producing part of the
country for small notes. By fore
thought and care during the past fiscal
year and the autumn following it. an
adequate stock of notes of different
denominations was provided and the
exchange of small notes for large was
readily made the outstanding notes OF
the denominations of 500 and under,
which decreased in volume by SILL
522. .157 from Sept. 30 1896. to the same
date in 1891 increased by Sal, ,6o7, ,03l in
the II months ending Sept. 80, 1898.
The gold in circulation rose steadily
by $40 327, ,263 in the former of the two
periods and by $94, ,551 .059 in the latter.
The total currency of all kinds i'll cir
culation shows an increase of $96539.-
249 in the former year and of $l3i o.
S54 in the latter, gain OF S234, ,349, lo5
for the two years.
The report reviews the history of the
net gold balance in the treasury show
ing how it was brought up four tunes
ov sales of bonds which remedy in each
instance proved effectual for only a
short period. BY July %, 1895. the gold
balance had fallen again to sS9, ,669, SIS.
Since that month. the reserve of $780,
900 600 has not been trenched upon.
| With some fluctuations, the tendency
| of the gold balance has been steadliy
| upward. The sources of supply have
| been the mines of the Northwestern
states, Alaska and Australia, with I'M
| portations from Europe the customs
| and the boards of the banks. Until
| the beginning of the year 1898, the re-
| ceipts of gold at the New YORK custom
| house were a negotiable quantity, put
since then after some fluctuations they
| have increased until they reached IN
| October 1916 per cent. OF the "hole'
| The tenders of gold from banks ana IN
| 1iyiduals in exchange for paper nave
| been greater than the resources OF the
| treasury have enabled it to accept
| The report states that the increasing
product of the war revenue act coupleo
with the proceeds of the war loan gave
rise to an apprehension that the drain
upon the currency of the country might
create a stringency which would De
harmful to business. To prevent such
| a result, arrangements were mace 20
prepay interest on government ponds
and TO redeem Pacific Railroad bonos
| before they fell due.
When it became obvious by the sud
| len close of hostilities that the demanus
1pon the treasury would not reach the
magnitude for which provision hao
been made, the secretary deposited
arge share of the proceeds OF the popu-
| lar loan in national banks in all parts
of the country BY this process the
funds. which are at all times avaliapie
for the use of the government. remain
cd in the channels of trade. The bal
ance standing to the credit of the treas
urer on this account on the olst OIL
i October, was s65, 10000. AS a result
/ of these methods, the immense fnanc-
| ial operations of the war were conouc-
/ ted so that the money markets were IN
no degree disturbed at any time
| The only change of Importance IN the
public debt was the payment OF w.
1 S50 e52 of the Pacific Railroad bonds.
The remainder of this loan outstand-
ing. June 80. was $14, 1@3.650, all of which
will be payable after Jan. l. 1899
The gradual increase in the circuia-
ton of the subsidiary silver CONS
which has drawn down the treasury
holdings Of the mint, the last ID years
from 500. .000. 600 to a little over $9oOo,ooo
the treasurer says. will soon make II
necessary to provide further supply
of this class of currency.
A noticeable Improvement in the
chief circulating medium indicated by
the diminished number of counterfeit
notes and silver coins presented att the
treasury offices is counterbalanced IN
part by the large increase IN the spu-
L s~<-s :