Evening star., 1898-02-22
i'm CASE OF WAR
The Treasury Would Be Prepared
for It.
SECRETARY GAGE is NOT WORRIED
With the Rest of the Cabinet Looks
for Continued Peace.
RY GAGE is NOT WORRIED
CONDITION OF FINANCES

The condition of the treasury should
war with Spain come is discussed today
by public men and treasury officials. Not
wlthstanding the currency problem, no
alarm Is felt by the majority of those who
give the question consideration.
Secretary Gage himself feels no alarm or
worry when the question comes to his
mind 1t would do SO, however, if the pos
sible war were with any other country
than Spain, or with number of the rich
countries of Europe. In fact in his speech
last week in Chicago the Secretary in re-
counting the deeds of Abraham Lincoln.
limited at the seriousness of the money sit
uation in case of a protracted and stub
born war with some great country in ELL
rope. He discussed this point as the Secre
tary of the Treasury, looking at IT from
| financial view-what might result to this
country as result of existing currency
laws.
Secretary Gage is one of the eight ooo,
and cautious men in the cabinet who secs
no pronability of war with Spain. But he
mas mas not tailed to look carefully to the con-
dlt1on or the treasury in case war comes
and is not in the least worried Nor is 49,
president, who keeps well posted on tho
conoltion of the big bank of the United
States. 'eu
Money I'm the Treasury.
Ira
ury today is 25,1Is,969. of which sI,7.-
o4l,425 is gold, S1OO.OOOOOo being the tradi-
tionai gold reserve. In case of war with
spain the gold reserve would have TO he
maintained. Taking this much from III,
available cash balance leaves s,25 oo oon
IN round numbers. certain amount OF
this. Secretary Gage estimates. wouId have
to be kept for the regular business of the
country-1or use in the Subtreasuries TO
meet the demands of trade and commerce
1t is estimated that S50.UUoe 900 wolI,d he
sunicient TO keep iE the treasury. in addi
tion to the stipulated gold reserve There
" now IN the treasury. therefore So 600
oOO, which could be Immediately used in
ense OF declaration of war. OF course
tne ORDINARY policy of the Secretary and the
aominisfratfon would not be- to decrease
the available cash balance to SO 600 0o0
put IT is thought that business could be
safely conducted on that basis nenl;ns
legislation action to restore the norr,aI
condition of affairs.
IN aaoitlon to the snug little sum named,
1ne administration now has before II the
prospect of no longer running bebind In
expenditures. Increasing customs race;nts
ana lhe revenues from other sources have
reached healthy state. The phantom of
s q eoItinuaI month"; and yearly deficit no
ioEeer stares the treasury officials I'm the
race The large deficit which will show at
tne END OF this fiscal year was made in the
lrst months of the year, before the Ding
I'M Sot larry started, and II is
doubtful If there will be another month to
record deficit, unless 1t is April when
heaTy quarterly payments on interest have
10 De made Last month, 1t is predicted Inv
any olilcials: was the last one which will
ever Snow deficit under the Dineley hill
unless. Of course, war should arise the ex
penses OF which could not be considered as
belonging to the regular expenses of the
sovernment- So In talking about what the
government would rave 10 paw opt to whip
spain. there is not the great fear that the
receipts would be continually running Nc
hind the expenses. necessitating inroads
on the available cash balance as hereto
fore. The regular expenses would be paid
out or the regular receipts and the COST
OF whipping Spain would be a separate ac-
count. to be cared for later. It is even
confidently predicted in many quarters that
by the time Spain had been thrashed tha
receipts would be so far above expenses as
to allow a sum to be set aside every
month to wipe out the debt incurred in
fighting.
A Source OF COnErntuIatjon,
The large amount of gold in the treasury
is particularly a source Of congratulation
among those who look for brush with
Spain In the near future. In this respec,
the treasury is stronger than in eight
years. The amount Of gold given is free
from membranes There is really s203-
Al ,945 gold in the vaults of the treasury
but $36 6446.529 is deducted from this for
outstanding gOld cert1hcateS, redeemable
on demand. leaving s167. .O41, ,425. How much
war scare would attack this amount of
gold has been talked over. but 1t is not
thought that it would be depleted largely
by reason Of a war with Spain. The con-
fdence of a short war, 1t is estimated by
Secretary Gage, would have more effect in
this direction than patriotism or anything
else. A run of any kind on the treasury
would probably not last long, if begun
Congress could stop it in any event by put
ting into the hands of the President AMI
Secretary of the Treasury power to guard
the treasury. This power would probably
be such as to cut short the designs of the
unpatriotic.
In his Chicago speech Secretary Gage
pointed out that at the beginning of the
civil war this country was not carrying
much debt. As result of that war the
government is carrying an additional debt
of $346, ,OOO. .O0O
In case of a protracted war with Spain
or with any other country, it is thought
that good deal of gold could be obtained
in this country. A war or war scare, it is
said by treasury officials, drives gold fur
tier into hiding, but this government is So
big and substantial that sale of bonds
will always draw from money holders their
yellow metal. After the battle of Bull
Run, when the country was despondent al
the outlook, $3.50. 200. 900 in bonds were sold
to bankers and others for gold. The bonds
rOhf