Arizona republican., 1900-08-20

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 1. to the amount of $176, ,5S6,- 800. The total gold supply in these two great centers, therefOre-the treasury and New York banks-is upon the face of the figures more than $610, ,000, 000 There are some Implications of gold certificates in the New York bank re- ports. but they are many times offset by the stock of gold in the interior banks. It is the opinion of experts at the treasury that the United States could lose $5O,OO0,0 900 in gold if condi- tions should result in a large export movement without impairing confidence or resulting in large redemptions of legal tender notes. The United States is now one of the greatest gold-prO- ducing countries of the world, and it is only natural that a part of this gold should find market in countries which are not producers of the metal
 SOUND FINANCIAL POLICY.
 The success of the refunding opera tions will be one of the strongest evi-
 
 of the soundness of it's financial policy The amount of bonds exchanged reached S325, ,2SO, ,75O up to the close of business on Wednesday last, and, in the opinion of Treasurer Roberts, will reach $4OO, GOO, 900 during the present year. This is fully up to the expecta- tions of conservative judges when the law was passed. The national banks still hold about 9,OOO,OOO in bonds of the three classes available for refund ing, most of which are expected to reach the treasury within year Thus far nearly all the bonds exchanged have found their way into the hands of the national banks. which derive spe- cial benefits from their ability to Ob- tain more circulation upon a given in vestment of capital and reduction of the tax when circulation is based on the new bonds.
 The net saving to the treasury gets the benefit of disposing of a large block Of Der cent bonds at par and reducing the annual interest charged by about 5000, GOO per year. The total saving in interest up to the date of their matur- ity on the bonds exchanged to August l is $40, 232, 10S, but the payment of $52,- 072 942 in premiums leaves a net saving of SS 159, ,161. This estimate of saving does not include, however, the saving by the reduced interest rate in the many years which the new bonds run after the maturity of those for which they have been exchanged. The net saving to maturity is subject to some deductions. in the general results to the treasury, by reason of the reduction in the tax on bank circulation, but even allowance for this leaves a net saving to the maturity of the old bonds up to July 31, of $S,5O1, ,627.
 RELIEF TO MONEY MARKET
 One of the most important effe ,ts "f the relunding lay in the relief atfordc to the money market by the induce ment to swell the bank note circula- tion. The circulation secured by bonds stood on January 1 at $209, ,750 655. and the bonds pledged had a par value of $234 4S4.570. The circulation secured by bonds rose to $2S6, Al. .434 on July 31 and the bonds pledged to secure circulation rose to $294, ,94S, ,93O. There has been an increase, therefore, in seven months. chiefly due to the Inducements of the refunding law. amounting to about $6O.- UUUUUU Tn the ponds deposited ana Sii, 0O0O00 in the circulation. The circula- ton will rise to almost the exact amount of the bonds pledged as soon as plates can be prepared at the bureau of engraving and printing and notes is sued to the banks. Thus far there has been some delay in issuing the new notes, because 9S6 orders for new plates were filed by old banks from March 1 to August 4 and 33S orders from new banks. Assistant Secretary Vanderlip has engaged engravers wherever com petent ones could be found, and has raised the delivery of plates to 100 per week, but only SPA have been yet deIiv- cred out of 1924, for which orders have been filed. The new banks have re- ceived only $5N5, 500 out of $4.25O,2 ,25O in notes for which they have pledged the necessary bonds. Every effort is being made, however to get out the notes in time for the crop moving season in order that the country districts of the south and west may get the full benefit of the new law in affording means for moving their products.