The Republican journal. [volume] (Belfast, Me.) 1829-current, 1900-10-04
THE UNITED STATES. rRrAsnpv

, ieiatlohS 10 the money market and in
It's resources for meeting EXPENSES
, Inc wise and far-sighted measures Of Of
, secretary Gage have put back into tho
Market much money which would other,
wise be locked up in the Treasury s1r-
plus. This will give greater facilities
lot optalnlng funds for moving the
olops lnah nave been witnessed for
many years. III
The gold in the Treasury is near III q
highest point ever attained in tha bic
tory of the country. This MONT ' m.s,
touched in August, when the combined
gold held by the Treaury OH Government e,
account and that held against gold car
tlflcateS was $435, 600, 600. The amount
held on government account on Mon
DAY, Sept. 10, was S219, 3S1 1927. and tha
amount held against gold certifcates
III circulation was S213, 293, $50, making
total gold fund in the Treasury of
about S432, 100000. u
When to this amount is added the
sl79, 291, 900 in specie in New York
Clearing House banks on September 3
there is a visible gold fund in these two =,
centres alone of nearly 5000. 900 600 A
part OF the gold held by the New Yorl,
banks is in Treasury gold certificates
but the allowance for them would i'm,
pair only slightly the total gold holdings
IN ashlngton and New ork, and would
be offset many times by the fund of
gold IN the banks, in circulation and in
private hands outside of these centres
1t became evident with the close of
the Spanish war that the liberal provjs-
ION made by Congress for CARRYING ON
| tne war by loans and the increase of
taxation would soon accumulate large
/ In
thought prudent to reduce taxation
until it became more clear what contri.
| button would be made by the new
| dependencies towards their own ex
| penses, or what charge might fall for n
time upon the Federal Treasury While
arrangements for self-government were
| being made.
Secretary Gage soon perfected a
| series OF important measures by which
| the surplus was kept under control and
| money released for the use of the people
| i'll moving the crops and carving 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 SUSPEND
| ed by Secretary Carlisle in 1898 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.
| Several other steps were taken which
more directly diminished the idle funds
in the Treasury and put them to use
among the people. One of these was
| the purchase of four and five per cent.
| bonds ilI1 of
| amount OF $4,000. G;,0 The amount of
| currency released in paying for them.
| including the premiums was 81. ~, SCI.
Then came tne refundine law, which
| was largely the work of Secretary Gage.
under which he was authorized to anti
| clpate out OF the present surplus the
| 1uture interest payments upon the pub
! lie debt by issuing two per cent bonds
| tor the outstanding threes, fours and
! lives, and paying the necessary premi-
! UNI III cash. The amount of these bonds
| exchanged, up to September !, was $3.50,
"S2 $50 The premiums paid in antici-
| patton of interest we've So. 977. BPS,
The interest saved to the government
was about S4l, 800, 600, making the net
| saving about 5000 900.
The amount of this saving was less
| important than the benefits to the
| Treasury and the money market, both
in the present and the future, by enabl.
| ing the Treasury to anticipate Sal. 800
| 600 III future interest payments while
| it had abundant surplus by putting
| about 81. 100000 at the command of
| the money market instead of keeping it
| locked up
Secretary Gage took another step on
| May Is, 1900, to reduce the surplus by
announcing lis readiness to redeem at
| par SO, 3G4, 500 of outstanding two per
cent. bonds, which We're extended at
4! that rate i'll 1891 by Secretary Foster
| The amount OF these bonds redeemed
up to Monday. September 10. was SIS
I! 400. $50.
The operations already set forth put
| back into the money market more than
81. O00,O 900, which would otherwise have
been locked up in the Treasury. 1t re-
manned for another feature of the re
funding law to add about $50. 600, 900 to
the currency which will be available
this autumn for the movement of the
crops. This feature was the increase
i'll bank-note circulation which was ell
couraged by the refunding bonds and
by the opportunity afforded for the
creation of small banks i'll sections
where the need for credit was keenly
felt.
The bank-note circulation stood on
January l, 1900, at S246, 1875, 523. The
increase began while the refunding law
was pending in Congress, III anticipa-
ton of the benefits of the new law but
became marked during the spring and
summer, after the law was enacted
The circulation rose on April to s270.-
953, O6S, on June 1 to $500, ASS. $50, and
on August to 1920, OILS. $50. The amount
Oh Saturday, September $, was 1925, 800,
765, showing an increase of almost $780,
100000 since the beginning of the year.
The banks are still entitled to about
s4,0oo,ooO of additional notes upon
bonds recently deposited, which they
will receive within few weeks.
The combined efforts of the opera
lions already described, including the
disbursements foI bonds amounting to
ST., O0O, 900 and an increase i'll the bank
note circulation amounting to SSo,0oo,-
600, have increased the money at the
command Of the people for moving the
crops and keeping i'll motion the wheels
of industry by an amount OF more
than S150,000,00O.
This policy has not prevented the
maintenance of large surplus in the
Treasury, more than sufficient to EN-
SIre confidence i'm the maintenance OF