Evening star., 1898-09-26
Nearly Ali Of the New Bond Issue
Has Been Paid For.
STEPS TAKEN TO RELIEVE THE MARKET
Efforts by the Treasury to Unload
Its Gold.
INCREASING PUBLICDEPOSITS

Ter cent bOntS- ne dIIOuul t'eilu III A4S-h
reached $1s3.2o0,ooo, and ot the remain
der Sc 62S, 600 is to be paid in installments
at intervals Of forty days and several mil
lions are still in suspense in regard to the
aIIotments. The result of this situation AMI
the heavy drafts of the War Department
has been that the increase of the cash
balance. which threatened to cripple the
money market, has been stopped, and the
balance has actually fallen several mil
lions The amount on Saturday. September
Il, when the maximum was reached, was
S31I 96S 1s1. The balance had been re-
duced on Saturday last to SS14 220, ,514, and
touched a slightly lower point on one or
two days last week. 1t IS not expected al
the treasury that a permanent reduction
will take place. and the balance may re-
turn again to S}2o. .0O0.Om, but it is be
lIeved that further increases will be slow
ard VIII not he sufficient in amount to af-
feet the financial situation. The gold re-
serve has remained substantially station
ary for a week past and stood on Saturday
at S2f2. So, 6li3.
Every effort is being made at the treas
ury to unload gold, I'm order to avoid the
reduction of the small fund of legal ten
ders. which is suffering from heavy de-
maudS for small notes in the south and
est. y sum of sS0t0Uo was gotten rid
Of last week iii the big payment of a mil
lion and half to the American Naviga-
tlOi- company Tor the rental of the auXil-
tary cruisers.
TO Relieve the Money Market.
The resource which is being relied upon
TO prevent stringency in the money mar
ket is the increase of the public deposits
in the national banks These went up
s;i,Iol,ctp last week. and stood on Saturday
at SIS.hz9.S92- Arrangements have been
made to increase the amount to $50 OaO aEl
but the final transfers have not yet appear
ed in the official reports. More than one
quarter of the cash balance has thus been
Entrusted TO the banks for the uses of the
money market, and of the remainder 800
HI.tb is properly set aside for the gold
reserve and about $50 n.0ep1 900 is necessary
Tor working balance for currency ex-
changes and the ordinary transactions of
the treasury. This leaves only about ssD
pp-lHN tied up in the treasury in eScass
OF actual requirements and a part of this
contributes to strengthen the gold reserve
The treasury officials are satisfied that
the money market will not suffer und11Iy
curing the remainder of the autumn from,
the condition of the treasury. They have
ehGeaFored TO provide against possible
stringency by Offering to anticiDate the
Interest due October ] on the old NJ
cent bonds, and already 81. So, ,619 has berr
ClSbursed during September for interest
Further authorizations Will be made. If they
are required. on the November interest on
the new fours and fives issued by Mir
Cleveland. and the whole Of the rev z no..
cent loan Of s2.D,ODJOYl These intarsst
payments will call for $4.373 la. and this
amount can be taken from the treasury
ana turned lLtO the money market at any
moment when the pressure is such as f.
lead the holders Of the bonds to ask for
their money The treasury has offered &c
redeem the Pacific railway bonds which
were outstanding on August 81 to Ire
amount Of $li.S4, $50 The fact that th,
monetary pressure is not intense is indf-
Gated by the presentation thus far of only
Si3ttp OF these bonds for reGenption The
pubic deposits will be further increased 4
there Is real necessity for doing it,
Banks Pick Up the New Bonds.
The banks are rapidly getting hold of the
new 3 per cent bonds, and have alrea fv
deposited more than s40,G9O,OOO of them as
security for circulation or public deD1sits
One bank turred in $4,000 entirely in
bonds for s1Od. which had evidently been
picked up from small subscribers The
new bends on deposit to secure circulation
according to the official figures on Satur-
day, were s1G.9T2 30. and those To sacur.
public deposits were So Gs2 $50 but these
hgures old not include more than 81 600 coo
received on Saturday
The drafts for war expenditures have thus
far been running as heavily during Sep
tfmber as they die during August Tho
war Department, indeed. has drawn nearly
2-Ws'!fssi more during the first twenty-four
Gays OF September than during the same
has drawn Srtj .tssJ more II is not expect-
ed that this rate Of expenditure will con
unue much longer. and the war drafts will
probably be light during the remainder of
the month One OF the reasons for the
large laval expenditure is the Dayment oC
nearly $1,000 for the rental of the Amer
lean line steamers referred 10 above.
Deficit in Receipts.
From present indications the deficit in
ordinary receipts for September will fall
only little below that OF August, which
Was SN.+tS."l0- One of the reasons for
this large deficit, however. is the falling
OF Of the receipts from the new revenue
law. which appear to be about 81 $40 U1I
less thus far in September than during the
same days of August Customs receipts
have improved about SsUD 900 but the total
ordinary receipts for the mouth, with fewer
business days. will be about s.. 100000 less
than they were in August. Some Of the
officials in the internal revenue bureau be
Aeye that the new revenue law may not
yield more than 500. 10000 per year. The
internal revenue receipts from all sources
during September promise to be about s2l-
51H"J. having been SlT.2Ts 1G7 uD to the
close Of las, week If this is the case not
more than S9.5O1.G'0 will be derived from
the new law. but this would he at the rate
q $1l4HD,cc0 per year, and there has al
ready been collected SJ,OCOOOO above This
average during the two months of July
and August.
II - lltpbdD4t INdL DteTlDtr Will marx
the minimum Of receipts under the new
law. because supplies of stamps purchased
at the beginning will be gradually worked
off and supplies required IN the fu-
tuTr.- and receipts will be heavier Fl ON
the beer tax. which was eyaded to some
extent by large deliveries Of beer TO re
tailers Just before the new law took effect
Revenues From Imports.
The receipts and expenditures during Sep
ternber " ould Indicate a slight reduction OF
some previous estimates OF the cash bal
ance at the close Of the year. if they wer@
continued at the same rate in the future,
but IL Is certain that expenditures will soon
fall of. and it is probable that receipts will
increase. As the treasury accounts now
stand. "a reasonable estimate of further ex-
pendttuves on account of the Spanish war
ard the mainte nance of garrisons would
be S2o.oDo.et0 during October and $40 VD 900
for each OF the following eight months Of
the fiscal year. over ard above the cost
of the peace establishment. making a total
of SiGO,OI0GOO. The proceeds of the new
revenue law would yield 5000. 900. even
al the lowest average thus far iEdica ted
aud will probably yield more than S100, ,OOO
OO0-
Another source of increased recoipts is
the growth in imDortations which seems
likely 10 occur with improving trade. The
customs receipts are running at a higher
rate this month than at any time since the