Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-06-11
TREASURY ~SURPLUS
Indications Point to $75, 900. 600 for
This Fiscal Year.
CONGESTION OF MONEY PREVENTED
Redemption Of Bonds Made by the
Secretary.
INCREASED CIRCULATION

A surplus Ct $75.0OO.00O in the receipts
| Of the treasury over ordinary expenditures
| Ia likely to be disclosed by the complete
| reports for the present fiscal year. which
| erds on June 80. next. The surplus for
| the year already stands at sG4, 745 269 and
\ the expenditures will be small during the
| remainder of the present month. The sur
| plus for June has already reached 81 40 652
/ and the pension payments have been half
| completed in the first third of the month.
| Expenditures are always small during the
| last month of the fiscal year, because dis
| bursting officers postpone their drafts until
| the beginning of the new year in July
| From present indications the receipts for
| the fiscal year. which stood on Saturday
at $i31 S2S 76S will reach $3.50 600. GOO. and
the expenditures will not exceed $4S;J 900 900
| The expenditures include all the costs of
| the instruction in the Philippines, so far
as the warrants have been issued. and the
receipts include the large collections under
the war revenue act well as under pre-
vous laws. surplus Of s7J,OO0.OOO for
the year will Indicate at least an equally
favorable showing for the next year. unless
reductions of taxation are made in the
meantime.
Back Into Circulation.
cessive amount of money If the surplus had
been allowed to quietly accumulate with
out any efforts to return 1t to the money
market for the use Of the people. Secre-
tary Gage, however, has kept the net cash
balance under control by redemptions of the
debt which do not appear in the ordinary
expenditures. He spent about So 000, 900
last fall in the purchase of 4 and per
cent bonds at a premium. and has paid
out more han S29.0OO.OOO under the
funding law for the differences between
present worth and par value Of the bonds
refunded.
These payments Of $4,000 900 have con-
tributed to keep under control the balance
of s129. 541 .fi05. which appeared on June 30
last. according to the present method of
stating the treasury accounts. The cash
balance on Saturday last STAT OBS. 40
and will stand at about S155,0O0OO0 at the
close of the present month il no further
payments are made for bond premiums or
in the redemption of the debt. The plan
which Secretary Gage has already an
nounced for dedeeming the old per cent
bonds will dispose of $25.364.5O0 of the
surplus of this year and next and tend to
keep the balance within reasonable limits
during the summer and autumn The
amount of these bonds thus far presented
for redemption has been only 81 ,21S, 600 but
it is confidently expected at the treasury
that they will come in rapidly for redemp-
ton when interest ceases about the middle
of August. The exchanges under the
prSinS volume in view of the considerable
period during which the offer has been kept
open. The total amount of bonds presented
for exchange into the new per cents
reached S2.S21O.950 up 30 the close of bust
ness on Saturday LAST A classified state
ment of the cases disposed of up to Friday
shows that the bonds presented for ex-
change have included $50 427 800 in the old
per cents. S45,9lG,p50 IN the fives and SOL
@o.GW in the :, Der cents. Nearly all of
these bonds have reached the hands of the
nat iona boz,
or for public deposits. The. amount of the
new bonds pledged for circulation stands
at sob 1s3.S5O and for deposits at $40 1872
GOO. This absorption of nearly s266 900 900
by the banks leaves only $27, 600. 600 in pri-
Vate hands or in process of transfer. The
exact amount paid by Treasurer Roberts in
settlement of differences between par value
ana present worth up to the close OF bust.
ness on June was 500 2S5. 317 This repre-
sents the relief of the money market to
this extent by the release of this amount
from the treasury.
1ncrease in Bank Notes.
While Secretary Gage will be able by tho
redemption of the old 2 per cent bonds and
by the refunding project to prevent the
congestion of money in the treasury dur
ing the crop moving season. the money
market will be aided also by the operation
OIL the refunding law in promoting bank
circulation. Every day witnesses deposits
OF new bonds by banks desiring to increase
circulation or by the new banks incorpo-
rated under the gold standard law. The
total circulation promises to reach at least
$i2o.GsD,UD before the close of the sum-
mer This will be an increase of nearly
Sso.TnTD over the amount at the close
OF lS:s'. before the effects of the refunding
plan began to be anticipated. The total cir
culdtlon at that time S246. 195, :J2t, of
which 500, I59.9S5 was secured by bonds.
The bonds then on deposit to secure circu-
latlon We're ;44S4JD. The bonds now
pledged to secure circulation are SITS, AGO.
5D an increase of about $4,GD0,OOO The
banks are authorized by the new law to
RAISE circulation to par of the bonds
pledged, amounting to about s23,JU.0OO and
making the total visible increase in cir
culation S6I,J0,UO. A part of these notes
nave not yet been issued, owing to delay
In preparing plates and printing the sheets.
but these delays will be overcome before
the close of the summer, and it is mod
crate estimate that further deposits of
bonds Will occur to the amount of $12.5'O-
ou' raising the net increase in circulation
ny SSoVt,sh, and the total circulation to
about s321,eD.0m. The net gain in deposits
OF bonds for circulatio on Friday last
%'l',!.o and on Saturday $6l.o0. These
amounts are smaller at present than for
some other recent dates because of
siderable Withdrawals of the old per cent
bonds under the necessity Of presenting
them for redemption.