Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1900-10-13
TREASURY POSITION.
NEVER STRONGER THAN AT THE
PRESENT TIME.
Surplus More Than Sufficient For All
Purposes, and at the same Time
Money Is Being Put Into the Mar
ket to Facilitate Business.
Especial washington Letter. J

position thau NJ the present time both
In its relations to the money market
and in It's resources for meeting ex-
penses. The wise and farsighted meas
ures Of Secretary Gage have put back
into the market much money which
would otherwise be locked up In the
treasury surplus. This VIII give great
er facilities for obtaining funds for
moving the crops than have been wit
messed for many years.
The gold in the treasury is near the
highest point ever attained In the his
tory Of the country. This point was
touched in August, when the combined
gold held by the treasury on govern
ment account and that held against
gold certificates was S43J, 100000. The
amount held on government account
on Monday, Sept. 10, was $219,3S1 ,927,
and the amount held against gold GER
tificates in circulation was 1913, $685.
GO, making a total gold fund in the
treasury of about 1892, 100000.
When to this amount is added the
$179, 201, 900 in specie in the New York
clearing house banks on Sept. s, there
is a visible gold fund in these two cen
tiers alone of nearly S600,00O,000. A
part of the gold held by the New York
banks is in treasury gold certificates,
but the allowance for them would inn
pair only slightly the total gold hold
ings in Washington and New York
and would be offset many times by the
fund Of gold in the banks, in circula-
ton and in private hands outside of
these centers.
Secretary Gage soon perfected a Sc
ries of important measures by which
the surplus was kept under control and
money released fol the use of the peo-
pie in moving the crops and carrying on
production instead of permitting its
congestion in the treasury. One of his
first steps was to resume the issue of
gold certificates, which was suspended
by Secretary Carlisle in 1893 when the
gold reserve dropped below 100000
600. The issue of certificates did not
affect directly the volume of money,
but afforded great relief to the market
because it enabled the public to get the
use of convenient paper currency in
place of gold coin.
The bank note circulation stood on
Jan. l. 1900, at $246, 1883. The in
crease began while the refunding law
was pending in congress in anticipation
of the benefits of the new law, but be-
came marked during the spring and
summer after the law was enacted.
The circulation rose on April to $270,-
953, 06S, on June / to $500, 4SS,S $3.50 and
on Aug. ! to 320,015,356. The amount
on Saturday. Sept. 8. was 1925, 800, 765,
showing an increase of almost $4,000,
600 since the beginning of the year.
The banks are still entitled to about
100000 of additional notes upon
bonds recently deposited, which they
will receive within a few weeks.
The combined efforts Of the opera
tons already described, including the
disbursements for bonds amounting to
$40, 000,000 and an increase in the bank
mote circulation amounting to SS0,000,-
000 have increased the money at the
command Of the people for moving the
crops and keeping in motion the wheels
of industry by an amount Of more than
$3.50, 100000.
This policy has not prevented the
maintenance of large surplus in the
treasury, more than sufficient to insure
confidence in the maintenance of the
gold standard and in the ability of the
government to meet all legitimate de-
mands. The surplus of receipts over
ordinary expenditures during the fiscal
year which ended on June 80 last was
ISL 900, 776. Most of this amount was
paid out in reducing the debt in the
manner already set forth. The result
was to keep the balance of cash left on
hand from becoming unwieldy without
reducing it below the point which
would afford ample funds for all de-
mands.
The cash balance stood on Monday,
Sept 10. at $136, 2SS,297. This is exclu-
sive of the big gold reserve of $780,
100000 provided by the gold standard
law as guarantee Of the sincerity and
ability Of the United States in main
caning gold payments. 1t is this re-
most heavily in case confidence was
disturbed by the election of president
pledged TO destroy the gold standard.
The general balance of $13G,2SS 297 is
not all lying idle in the treasury vaults.
The necessity of preventing strlngency
in the money market led Secretary
| Gage in the autumn of 1899 to increase
the sums inrusted to national banks,
but absolutely secured to the govern
ment by the pledge of United States
| bonds.
The policy of Secretary Gage has
been steadily directed to keeping the
treasury III the impregnablc position
which will insure public confidence,
employing the surplus as far as good
! judgment permits in the reduction of
the public debt and putting the remain
der at the disposal of the money mar
! ket for the encouragement of ample
funds and low interest rates In the
a A.