The Penn's Grove record., 1899-12-08
THE NATIONAL FINANCES
lnnuaI Report Of Secretary Gage Sub
mitted TO Congress.
ADVOCATES THE GOLD STANDARD.

Present strength OF the Treasury Never
Before MISUNDERSTANDING Gag Urges
Amendments to National Banking and
Currency Laws-Iseceipis and Expend-
iturss-Estimates For the Future.
wAsHIsoros. D. @. Special. Lyman J.
Gage, Secretary OF the Treasury. in his an
nuaI report, estimates the revenge for the
fiscal year ending June 80, 1900, as $780,
95S, liz; expenditures, 5000, 5 s,112. sur
plus, $40 ,0o0, 900.
The estimates for the year ending
June 80, 1901, are: Receipts, 1907, 77s, 25S.
expenditures. $685., s53, AS; deAcit. SIS,
$50, 1876. In the latter estimate the Score
tary reckons on a decrease In military ex
pendItures Of s21 ,s29.4l7.
While there WINS a deficiency OF 889.11l,-
$50 In the ordinary revenues OF the current
fiscal year as compared with the expendi
lures, the excess Of receipts over disburse'
ments on account OF loY ems sufficient &c
realize a net surplus OF N,521.
Tn amount Of notes. 'er certii'
Gates In circulation ed $43,.
1928, 1856, reducing thy totthe
Treasury to the my sd Tor the
transaction OF By outstanding
treasury notes OF -sJv =, ere cut down Dy
cancellation or redemption In silver dol.
lars. from S101 ,207, $50 to 59S, SIS, $50.
The Increase OF gold In the hands Of the
people is estimated at S23 ,915 ,273. The de
mand for standard silver dollars was sc
great that on September 80 last there were
$68, 755, 243 In circulation, the highest
amount ever reached. On September 30
the gross amount OF gold coin and bullion
In the Treasury was 1865. 002 $3.50. and the
net 1884, 32S ,S21. The maximum net golo
uns 42h4 091 565 IN 0ctohrr IL. Hls
The Secretary renews his allegiance tic
gold standard, and declares there are two
ways to Ok that standard permanently-to
declare by law that the credit Obligations
of the Government shall be paid In gold
coin, or to make 1t mandatory upon the
Treasury to so pay and receive gold and
silver MS to maintain their parity.
Secretary Gage gives at length his views
on the changes which he believes to be
needed in the banking law views which
differ In no essential particular from those
which he has so many times advanced. He
declares that, "while stability IN the mr.
rency should be safely guarded. fexibility
the power of needfui expansion-must
also be provided. The exercise OF this
power. with proper restrictions, must beln'
trusted to the bank. There is no other
agency that can wisely and efficiently exc.
cute It,"
The Secretary goes exclusively into
the matter OF the periodical great demand
for currency to move the crops, and nses
the recent ~stringency 10 the New York
money market. caused by this cfop-moving
demand, as an object-lesson.
He declares that the stringency might
have been relieved logically and safely by
the New York banks had they been permit.
ted to issue their own notes In payment oil
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 prohibitiyo
tax OF ten per cent. on notes OF State banks
and unreasonable conditions imposed upon
national banks"
The Secretary that the
note-issulng fupc ebe re-
1ieved OF these resi- 81 .ud ,uat @s5,-
900 instead of $50, Oo0De made the minimum
capitalization Tor national banks.
He also urges thRt the law limiting bank
loans be remedied to do away with In
equalities which now exist. He declares
that sfor the ultimate solvency OF the bank
as to its deposits the capital OF the bank Is
the proper guarantee. The capital should
therefore be fairly adequate to the risks
involved"