The Somerset reporter. [volume] (Skowhegan, Me.) 1868-1909, 1899-12-07
AS TO FINANCE.

The strong position of the treasury
with respect to cash on hand and the
favorable showing made by the reve-
nues have made it possible for the sec
rotary of the treasury to take action un
der the provisions of section 1894, re-
vised statutes, relating to the sinking
fund. Receipts exceeded expenditures
for the first five months of the current
fiscal year by Sl3, 413. 3S9.9i. and, as men
toned above. the secretary of the
treasury estimates that there will be
surplus Of approximately $40 600, 900 ct
the end of the year. Under such condi-
tons, ii was deemed advisable and prop
er to resume compliance with the pro-
visions of the sinking fund law, which
for eight years has not been done, be-
cause of deficiencies in the revenues.
The treasury department, therefore, Of
fered To purchase during November $25,
900, 900 of the 8 percent loan of 1904, or
the percent funded loan of 1907 at the
current market price. The amount Of
fered and purchased during November
was SIS. 40S, 600. The premium paid by
the government on such purchases was
81, 263, SCI, and the net saving in interest
was about $685., 600.
The success of this operation was
, sufficient to induce the government to
continue the offer to purchase bonds
to and including Dec. %. instant, unless
the remainder of the $25, 900 600 called
for should be presented in the meantime
for redemption.
Increased activity in industry, with
It's welcome attendant larger en-
ployment for labor at higher wages
gives to the body of the people a larger
power to absorb the circulating medium
1t is further true that year by year, with
large areas of land under cultivation the
increasing volume of agricultural prod
ucts. cotton, corn and wheat, call for "A
larger volume of money supply. This
is especially noticeable at the croph ar-
vesting and crop-moving period.
In it's earlier history, the national
banking act seemed to prove a reason
able avenue through which needful ad-
ditions to the circulation could from
time to time be made. Changing condi-
tions have apparently rendered it now
imperative to that end. The high mar
gin in bond securities required, result
ing from large premiums which govern
ment bonds command in the market or
the tax on note issues, or both operating
together, appear to be influences which
impair its public utility.
The attention of congress is respect
| fully invited to this important matter,
with the view of ascertaining whether or
not such reasonable notifications can
be made In the national banking act
as VII, render its service in the par
| ticulars here referred to more re-
sponsive TO the peoples needs. again
urge that national banks be authorized
TO organize with a capital of 1926 900.
urgently recommend that. to support
the existing gold standard, and to main
tain 1.-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 means as may
be necessary to these ends The au-
thority should include the power to sci
bonds on long and short time, as condi-
/ tons may require, and should provide
for rate of interest lower than that
fixed by the act Of Jan IA, 1875, While
there is now no commercial fright which
withdraws gold from the government
but, on the contrary. such widespread
confidence that gold seeks the treas
ury, demanding paper money in ex-
change, yet the very situation points tc
the present as the most fitting time tC
make adequate provision to insure the
! continuance of the gold standard, and
of public confidence in the ability and
| purpose of the government to meet al
its obligations in the money which the