Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-12-30
THE MONEY MARKET
Treasurer Roberts Explains His
Recent Interview.
TREASURY A NECESSARY FACTOR
No Reflection on Secretary Cages
Deposit Policy.
ADJUSTABLE CONDITIONS

Mr.. Roberts, director of the mint, has
| certain journals to make it appear that his
| utterances in an interview of few days
| ago reflected upon Secretary Cages policy
| of depositing money in banks to relieve the
money market at this time.
| The interview referred to was brought
| out by reporters presenting certain COM
| ments by ex-senator Dubois upon the finan-
| cial situation. The latter argued that the
| stringency would greatly help the silver
| cause by demonstrating that gold alone did
| not furnish a sufficient base for the fabric
| of modern business. Replying to the re-
porter's queries, Mr.. Roberts controverted
| this view. saying that no possible supply of
money could prevent panicS and periods of
| stringency.
MIR. Roberts Statement.
Talking with a Star reporter this morn
| ing, Mr.. Roberts said: My assertion that
no possible supply of money could prevent
| periods of stringency is a general PROPOSE
| ton, entirely in harmony with Secretary
Cages views. Experience has shown that
the superstructure of credit will adjust
Itself to any money stock, and that no mat
ter now greatly the stock may be increased
the pyramid of credit will grow correspond
lngiy. hence, the folly of pointing to strin-
gency TO prove that the general stock of
money is insufficient. If the money stock
should be doubled or trebled the same
symptoms of stringency would soon re-
appear.
But entirely consistent with this view is
the opinion that given certain supply of
money, and the fabric of credit having he
come adjusted to it, an arbitrary or sud-
den contraction of the supply is To he
avoided. Secretary Gage is the last man
TO think that it is part of the business of
the government to take care of SPECTATORS
VINO may get their fingers burnt, or that
the treasury should interfere with the nat
urai course of the markets
Treasury a Factor.
Unfortunately, however the treasury of
the United States is at times inevitably a
factor in the money market Our system
Oh Withdrawing the revenue receipts from
circulation and locking them I'D in the
treasury vaults is a vicious one There is
no more reason why the general govern
ment should do it than for the state or citv
Oh New ork to do it: No state government
does 1t; no other nation does it. When our
receipts and expenditures are offsettine
each other the effect Is nil, but when the
receipts exceed the disbursements there is a
steady drain on the currency in circulation
and an inevitable and disturbing Influence
on the money market. Every Secretary of
the Treasury who has had a surplus has
found 1t prudent to hold some of the re-
celpts In banks in order to prevent the
treasury from interfering with the ordinary
course of affairs.
Surplus of Receipts
THE receipts of the treasury during the
present month have exceeded its disburse-
ments by about 100000. Since August
the excess has been nearly $50 600 900 But
for the action of the Secretary in mr.
CHASING bonds and making bank deposits
all of this would have been withdrawn from
circulation. Furthermore, this condition is
nkeIy to continue; the monthly surplus NAV
even increase, and in time such a drain
would affect all business interests If the
secretary gave no sign of an appreciation
or TINS condition. and no relief from the
draln could be expected there would be
grave apprehenSionS as to its results His
acuon, instead of being IN interference with
the natural movements of the markets has
oeen only to prevent treasury operations
from interfering with the natural course of
business. 1t has only served to nullifv the
evil and illegitimate influence of a constant
accumulation of money in the treasury
Effect of Boer War.
1T has been particularly desirable lust
at this time, when SO many unusual and
extraordinary influences are disturbing nor
NAL conditions, that the treasury should not
continue to rapidly absorb money The sud
den cessation of remittanccs from South
Africa to London and reversal of the move
ment coming when trade was very active
ana business operations much extended all
over the world, has caused a sharp tempo
rary strtngency in all foreign markets and
forced gold exports from here. Everything
VII adjust itself in time, but the treasury
ought not to contribute to the stringency
while the adjustment is going on