The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-12-06

1 balance was S27S,004, ,S3772. of which
S239. 144 ,905.36 was in gold coin and
bullion. The conditions of confidence
which prevail throughout the country
have brought gold into more general use
and customs receipts are now almost
entirely paid in that coin.
THE PURCHASE OF BONDS.
The strong position of the Treasury
with respect to cash on hand and the
favorable showing made by the reven-
ues have made it possible for the See
retary of the Treasury to take action
under the provisions of section 1854,
revised statutes, relating to the sink
ing fund Receipts exceeded expehd-
lures for the first five months of the
current fiscal year by $13, 413, ,3S991.
and. as mentioned above, the Secretary
of the Treasury estimates that there
will be a surplus of approximately $40,-
100000 ait the end of the year. Under
such conditions it was deemed advisa-
bic and proper to resume compliance
with the provisions of the sinking fund
law, which for eight years has not been
done because of deficiencies in the rev
enues. The Treasury Department there
fore offered TO purchase during Noveni-
ber $50. 100000 OF the five per cent
loan Of 1904. or the four per cent.
funded loan of 1907, AT the current mar
ket price. The amount offered and
purchased during November was S1S,-
40S.600. The premium paid by the
Government on such purchases was S.
2533, ,521. and the net saving in interest
was about S2.SS5, 600. The success or
this operation was sufficient to induce
the Government to continue the offer
to purchase bonds to and including the
23rd day of December, instant. unless
the remainder of the S25,000,000 called
for should be presented in the meantime
for redemption.
MORE MONEY NEEDED.
Increased activity in industry, with
its welcome attendant larger en-
ployment for labor at higher wages
gives to the body Of the people larger
power to absorb the circulation medium.
1t is further true that year by year,
with larger areas of land under cult
vation, the increasing volume of agri-
cultural products, cotton, corn and
wheat, calls for larger volume OF
money supply. This is especially no
ticeable at the crop harvesting and
crop HDNlIS peTiOu.
AS TO NATIONAL BANKS.
The President refers to the national
banking act, and urges that national
banks be authorized to organize with a
capital of $4,000 He says that in its
earlier history the national banking acI
seemed to prove reasonable avenue
through which needful additions to the
as.. tla4i IN H..
made. Changing conditions have ap-
parently rendered it now imperative to
that end. The high margin in bond
securities required resulting from larger
premiums which Government bonds
commanded in market, or the tax on
note issues, or both, operating together
appear TO be the influences which inn
pair its public utility. The attention of
Congress is invited to this important
matter with the view of ascertaining
whether or not such reasonable modifi-
cations can be made in the national |
banking act as will render its service in |
the particulars here referred to more |
responsive to the peoples needs.
The Gold Standard.
Concerning the gold standard, the |
President says:
Il urgently recommend that to sup.
port the existing gold standard and te
maintain the parity in value of the coins
of the two metals (gold and silver and |
the equal power of every dollar at al |
times in the market and in the payment |
of debts, the Secretary of the Treasury |
be given additional power and charged |
with the duty to sell United States |
bonds and to employ such other effec- /
tive means as may be necessary to
these ends The authority should in
ciude the power to sell bonds OH long
and short time, as conditions may re-
quire, and should provide for Il rate of
interest lower than that fixed by the act
Of January 4th, 1875. While there is
now no commercial fright which with.
draws gold from the Government, bur
on the contrary such widespread conf
denee that gold seeks the Treasury de-
manding paper money in exchange. yet
the very situation points to the present
as the most fitting time to make ade-
quate provision TO insure the contin-
nance of the gold standard and of pub
lie confidence in the ability and pur-
pose of the Government to meet all dts
obligations in the money which the civ
ilized world recognizes as the best. The
financial transactions of the Government
are conducted upon gold basis. We
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