Evening star., 1900-08-13
A Strong Pillar for the Republican
Managers.
ADMINISTRATION OF THE TREASURY
Steps Taken to Strengthen the
National Credit.
NO FEAR OF GOLD EXPORTS

| The administration of the Treasury De-
| partment during the last four years will be
| one of the strong pillars upon which the
| republican managers will lean in the COM
| ing presidential campaign. The passage of
the gold standard law by Congress has
| been supplemented by series of steps by
| Secretary Gage which have contributed
| not only to strengthen the national credit.
but to prevent the congregation of money
| In the treasury at the expense of the mar
| ket. maintain adequate medium of cir
| culation. and thereby stimulate and en-
| courage the wave of prosperity due to other
| conditions. Secretary Gage decided soon af-
| ter the gold standard law was passed that
| the gold reserve of $3.50, 900, 900 required 10
be set aside. should be constantly replen-
| ished with gold from the general fund. 50
| long as the latter contained any gold. This
| policy kept the reserve intact at the even
| sum of s1jo.O0O,0O0 in gold. and stimulated
the accumulation of the yellow meal in
| the treasury until the amount has gone
| higher than ever before in the history Of
| the country. 1t has been necessary 10 take
| energetic steps on several occasions TO pc
| vent stringeAcy in the money market: and
| further steps of this sort may be required
| during the summer and autumn. Secretary
| Gage, with the aid of the gold standard
| law. has, however. already put nearly
sso.oe0.o0o into the market within the past
! year and the present easy condition of
| money makes it doubtful whether any fur
| ther measures may be required than those
| now in operation.
| Three Steps Taken.
The three steps taken within the past
| year to keep down the cash in the treas
ury and return it to the people for USE have
been the purchase of and per cent bonds
last autumn, the payment of differences be-
| tween par value and present worth in the
| Of
. per cents under the refunding law and
the redemption of the old per cents. which
| were extended by Secretary Foster in 1871
| When the condition OF the money market
| was most serious in New York and the
west last autumn Secretary Gage offered,
on November Ii. to buy S25 OO0OOO in AMI
per cent bonds. The principal of the
| bonds received under this offer was $40
300.6oO. and the amount paid by the treasury
was s21 III .ss7. The operations untor the
| refunding law up to August 1. 1900. called
| for the payment in differences between par
value and present worth of s32,Ooo,000.
| The amount of the old per cents out
standing when Secretary Gage made his
recent call for their redemption was SD
| aa.JU. The sum of S8.S57. $50 of these
| bonds was redeemed up to Saturday, Au-
gust 4, but it is probable that nearly all
| will be received before August Is. when
| interest ceases under the recent call, or
| soon after this date. These three steps,
therefore. for reduced the money in the
| treasury within year about SSb.@0.D0. in
| ing the deposits of public money in the
| national banks The treasury still has a
| cash balance of about $l!sb.pU.HU exclusive
| of the gold reserves. but s95OOpWO is In
| the custody of the banks for loans to the
people during the crop moving season
What Can BE Done IL Required.
| Further steps will be taken by Secretary
| Gage. if the conditions of the market re-
quirc, either to transfer some to the
| ticnal banks or to purchase outstanding
bonds and put an end to the interest which
they now draw each quarter from the treas
ury. A surplus Of ordinary receipts last
year amounting to S1.229.776 is likely to
swell into surplus of s1O0O00OOO for the
fiscal year which began on July 1 if bust
ness conditions continue favorable. The
management of such surplus is almost as
difficult for finance minister covering
| deficit by the issue of bonds and treas
ury certificates. The proceeds Of the
revenue law. which was passed to meet the
| expenses of the Spanish war. have run up
to more than $1Oo.OO.OO0 and afford consid-
cradle opportunity for the reduction of tax
alton at the next session of Congress II the
troubles in China do not subject the coun-
try to new and heavy expenditures. 1t Is
not probable. however. that so large re-
duction in taxation as $lOO.oOo,ND will be
| made in any event. since the present rate
of revenue is based upon the maximum of
| business activity and is likely to decline
| considerably If a period of depression sets
in. Secretary Gage will be abe to keep
| the surplus under control IL the money
| market becomes stringent by purchasing
bonds. but as a preliminary he would prob
| ably suspend the existing offer to deliver
! per cent bonds for the old classes under
) the refundng law. The withdrawal OF this
| offer would deprive the bonds Of some of
| their special value to the banks and per-
NIT the treasury to purchase them at a
| fair price.
Gold Exports Cause No Alarm.
The recent exports of gold have not eN-
| cited alarm at the treasury in view of the
| great stock of the yellow metal in the
| treasury and banks. The amount Of gold
| in the treasury broke all previous records
| early in the present month. and has gone
higher almost every day. The total gold
held in the reserve fund. the general fund
| and. the trust fund for the protection of
| gold certificates stood on Wednesday, las,
| at S4,5 565. .fs32. OF this amount S222. 1IS,973
was the exclusive property of the United
| States, and the remainder was held In trust.
| dollar for dollar, against an equal amount
of gold certificates outstanding. The New
York clearing house banks held specie,
| mostly gold. on August +. to the amount of
| $l76 5S6 800. The total gold supply in these
| two great centers therefore-the treasury
and the New York banks-is upon the face
| of the figures more than $610 900 600 There
| are some Implications of gold certificates
in the New York bank reports. but they are
many times offset by the stock of gold in
| the interior banks. 1t is the opinion of ex-
perts at the treasury that the United States
could lose s50OOOOOO in gold if conditions
| should result in a large export movement
without mpairing confidence resulting
in large redemptions of legal tender notes.
| The United States now one Of the
greatest gold-producing countries of the
| world. and it is only natural that part of
| this gold should find market in countries
which are not producers of the metal.
Sound Financial Policy.
The success of the refundfng operations
| will be one of the strongest evidences
presented by the administration of the
| soundness of Its financial policy. The
| amount of bonds exchanged reached $685.
$50, 100 up to the close Of business on We'd
| nesday last. and, in the opinion Of Treas
urer Roberts. will reach s4OO,O0O,OOO during
the present year. This Is fully up to the
i expectations Of conservative judges when
| the law was passed. The national banks
| still hold about $59. 900 600 in bonds of the
| three classes available for refunding. most
| Of which are expected to reach the treas
ury within a year. Thus far nearly all the
| bonds exchanged have found their Way into