The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1899-12-20
TIE NATIONAL FINANCES
Annual Report Of Secretary Gage Sub.
mitted to Congress.
ADVOCATES THE GOLD STANDARD.

Present Strength OF tho Treasury Never
Before Equalled-secretary Gage Urges
Amendments to National Banking and
Currency Laws-Rsoelpts and Expend-
itures-EstImates For the Future.
WASHINGTON. D. C. (speclaD. J..
Gage, Secretary OF the Treasury. In his an.
nual report. estimates the revenue for the
fiscal year ending June 80, 1900, as $780,
95s,112; expenditures, 60e,95S,112. sur
plus, $4o, ,0O0. 900.
June 80, 1901, are: Receipts, $685., IT'S, ,25S;
expenditures, e635, 1853, ,44s; deficit, s1s, 1.
0SO, ,195. In the latter estimate the secre.
tary reckons on decrease IN military ex.
pendltures Of s21, ,s29,417.
whilethere was deficiency OF ss9, ILL.,
$50 in the ordinary revenues or the current
fiscal year as pared with the expendi-
lures, the excess OF receipts over dlsburse-
ments on account OF loans was sufficient to
realize a net surplus OF $100, ,791 ,521.
The amount of notes and silver certla-
Gates In circulation was Increased $4S,-
1923, 1856, reducing the paper holdings otthe
Treasury to the minimum required Tor the
transaction OF business. The outstanding
treasury notes OF 1890 were cut down by
cancellation or redemption In silver dol.
lars from $101 ,207, ,280 to $93, ,5l8 ,2S0.
The increase OF gold In tho hands OF the
people Is estimated at S25 5,915,273. The de-
mand for standard silver dollars was 80
great that on September 80 last there were
S69, 5,24S In circulation, the highest
amount ever reached. On September 80
the gross amount OF gold coin and bullion
in the Treasury was $353, ,002, $3.50, and the
net 1884, 1928, ,621. The maximum net gold
was s25s ,0Sl ,565 on October IL. ...,
The Secretary renews his allegiance to
gold standard, and declares there are two
ways to tx that standard permanently-to
declare by law that the credit obligations
OF tue Government shall be paid In gold
coin, or to make it mandatory upon the
Treasury to so pay and receive gold and
silver as to maintain their parity. -ss
Secretary Gage gives at length his views
on the changes which he believes to bs
needed in the banking law views which
differ In no essential particular from those
which he has 80 many times advanced. He
declares that, "whiIe stability in the cur
rency should be safely guarded. hextbllity
the power OF neediul expansion-must
also be provided. The exercise Of this
power, with proper restrictions, must be In
trusted to the bank. There Ia no other
agency that can wisely and efficiently exc
cute It."
The Secretary goes exhaustively into
the matter OF the periodical great demand
for currency to move the crops, and uses
the recent strlngency In tho New York
money market. caused BY this crop-moying
demand, as an object-lesson.
He declares that the strtngency might
have been relieved logically and safely by
the New York banks had they been permit
ted to Issue their own notes In payment OF
the balances which they carried for West
ern creditors and which the creditors were
demanding In currency.
This course was, however, prevented by
what the Secretary calls, "the prohibitlve
tax OF ten per cent. on notes OF State banks
and unreasonable conditions imposed upon
national banks"
The Secretary recommends that the
uote-issuing functions OF the banks be re-
lieved OF these restrictions and that S25,-
700 instead OF $50, 900 be madeth minimum
capitalization for national banks.
He also urges that the law limiting bank
loans be remedled to do away with In.
equalities which now exist. lie declares
that "for heultlmate solvency OF the bank
,s to its deposits the capital OF the bank Is
:he proper guarantee. The capital should
therefore be rairly adequate to the risks
involved"