Evening star., 1898-11-04
Annual Report on Its Operations and
Condition.
DEFICIT FOR FISCAL YEAR $5S,O47,A7
Increased Expenses on Account of
the War.
RELIEVING MONEY MARKET

II. Roberts. has submitted to the Secretary
of the Treasury his annual report on the
transactions and condition of the treasury
tor the past fiscal year
The net ordinary revenues OF the govern
ment were $405. .221. .3:sJ, an increase of
s-I.I91 go over those of the previous year
while the net ordinary expenditures were
SlL3.3'iN,5S2. an increase of $T7. .j94. 42:3. The
resulting deficiency Of s%s.0i7,2l7 exceeds
mat of the preceding year by $40, ,994, ,793.
In the receipts are included s64 151 DOB
T7id into the treasury on account of the
sale of the Union Pacific and Kansas Pa
eiac railroads Out of them We're paid
50 so 80 of the bonds issued for the con-
struction of the Pacific railroads, which
went to increase the expenditures.
War Expenses
Up to the close of the fiscal year the in
crease Of the expenditures on account of
the war with Spain was s43.041 49, for the
War Department. and s24.262, 4SS for the
Navy Department. For the four months.
Jgly. August. September and October. 1888.
the expenditures of the War Department
were sihI.52O. .35S. being sS1 ,613. l31 greater
than for the same months in 1897. For the
slrne months this year the Navy Depart
ment expended 81 .459.5T. which was
SlSHl4@26 more than it spent in the like
period in 1897. J-p to October II the war
with Spain aided TO the disbursements OF
these two Departments the sum of S164 932-
22>
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 their character. Against
net loss of SI.59h,oH0 in the total holdings
available for the fiscal operations of the
nf lIoy-a ard
of S2G.bup.uoo in free gold, coupled with
increase of nearly $4,000. 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 treas
ury notes.
The total available assets were Ss74 764.-
$50 on June 30. 1897. and $s$9, 1856 a year
later. BY the addition of the unavailable
assets CARRIED by the department these
totals are swslled TO S9O4 411.576 and $780,
2p2?41 respectively June 80, 1888: the treas
urer liability to the general treasury fund
was $IIJ,151,3 1858.
The Treasury Gold Balance.
In chapter in which the treasurer re-
views the history OF the net gold balance
in the treasury. he says that prior to Sep
tember 1. 1S9S. the highest point which this
balance had ever attained was S219 O59 2;I2 .2,;;II22
on April 3, 1sSS- on June 6. 1893, the
amount was $3.50 364. the lowest in fifteen
years. or from June, 1878 By the ex-
c9dHge Of notes for gold with the banks
the net gold balance was brought nm 70
Sln $50 by August To- 1893. Another
minimum mark was reached February l.
1e''i- a. $i5, 43s,5Is. by the proceeds of a
sale # bonds, amounting to s5s. .6Gu 9l1, the
net N9iH balance was increased TO S1D1 446-
sU2 1y March 8. Under reaction however
1t again fell TO sJ4,gI5.6O7 by the end of
July, 1924. Another sale of bonds In No.
Letntsr ana December Of that year brought
In S'N.il9,Ilo and the gold balance on De-
ceInber 4, 1894, was again S111,142 O2I
me remedy was effectual for only a
brlet period. for on February IL. 1875, the
treasury held only s41 $40 ISL in free gold
Again bonds were sold. for which PAYMENTS
agEregating S6J42S'-J6 We're received from
February 10 June. Thus the net gold bal
ance was carried up 10 SIO7 5g1 90 nv IuIv
3. ls!E- Once more the relief was but tenn
porary, and by February s. 1898, the gold
balance had fallen to $i4, 563 493 For the
fourth time resort was had to a sale of
bonds, which produced, up to June Sill
355.6 .612, and brought the gold balance IN to
maximum Of sl2S, 7l3. 100. from which
point II sank again by July -, 1896, to
So. GlG3 80.
Since that month the reserve Of sl0O 900
tvV has not been trenched upon With some
fluctuations, the tendency of the gold bal
ance has been steadily upward The
sources Of supply have been the mines of
the hurthwestern states, Alaska and Aus
traiia, with impOrtatiOrs from Europe the
customs and the boards of the banks Tn
III the beginning OF the calendar year 1898
nous were negligible quantity, but in
March they rose to 1905 per cent of the
whole III April to % = per cent and after
some fluctuations reached IS per cent i'm
September. and 79.6 in October The ten
ders of gold from banks and individuals in
exchange for paper have been greater than
the resources Of the treasury have en-
aDied II To accept
Relieving the Money Market.
The Increasing product Of the war rev.
enue act. coupled with the proceeds of the
war loan, gave rise to natural apprehen-
sion that the drain upon the currency of
the country might create a stringency
which would he harmful to business. To
prev ent such a result notice was given
that all coupons falling due October /
might be presented for payment on or after
September 10, and that checks for inter
ests on registered bonds of the same loans
would ne sent out on september % as
soon thereafter they could be prepared
As further measure of relief a Circular
was issued by the Secretary of the Treas
ury giving to the holders of s14Vu4 SD of
Pacific railroad bonds. which fall due jan
uary l, lSg9. the option of receiving pay
ment ~ principal and interest in full, less
q rebate Of one-half of one per cent. The
same option was afterward extended sue
CeSsIFe4y to October and November
When II became obvious, by the sudden
close Of hostilities, that the demands upon
the treasury would not reach the magni-
the Secretary determined to deposit u large
share Of the proceeds of the bonds in ma
uonM banks in al! parts OF the country
BY this process. the funds, while at all
times available for the use OF the gov
srlm- mt, remained in the channels of trade
The balance standing to the credit of the
treasurer on this account on the 31st of
Get pher was $6o. I.s.ssr9. The result of these
Methods OF dealing with the situation has
h-cH II all respects satisfactory and the
immense financial oDerat tions of the war
have been conducted So that the money
markets have been IN no degree disturbed
at any time.
The only change of Importance in the
public debt was the payment of SD $50 952
Of the Pacific railroad bonds The remain
der of this loan outstanding on June 80
was Sl4. so, all OF which will be paya-
bic after January 1, 1899.
HIS REQUIsITIONs FILLED.
Col. McCord's Statement to the Wur
Investigating Commission