The times. [volume] (Richmond, Va.) 1890-1903, 1900-10-04

investment for provident fund In
1888 he recommended purchase of state
stocks as in the Indian trust Think
OF the Treasury going into the market to
buy Sl0o.G O0c0 in stocks. and when it
needed funds. and, therefore, a general
stranSency prevailed, Offering It's Setl.ri-
ties for sale to unwilling buy rs! The
Indian trust fund illustrates how State
bonds have been Suffered to Sleep undis-
turbed by payment OF principal inter
est.
Other pans by the same Secretary were
TO designate various officers in the sew
eral States, including postmasters, to act
as fiscal agents, and again to appoint
commissioners or receivers general TO col
lect and disbursa pubic funds.
COST OF THE WAR.
For two years our financial problems
have related TO the surplus The Span
ish War cost much less than the esti-
mates. General prosperity has given
large revenues The Secretary of the
Treasury has had TO decide what TO do
with Sis, 0OO,010 of unused funds, for the
Treasury was abe to spare so much from
! quick resources, and yet to rstatn about
S5h,0G0,0G0 in its own vaults. That Is
about the cash kept by the British
Exchequer in the Bank OF England: the
sum was f10,616,003 last month. Besides,
our Governm- mt needs large amounts
within quick reach for emergencies.
| and to respond to the frequent and some
| what urgent appeals for the relief OF the
money market. The prepayment of Inter
est could be only q transient measure;
bondhoders showed no desire to accept
interest in advance on rebate.
Stronger measures were adopted and
were successful. Offers We're put out
| November Is, 1899, to buy $25,0o3,000 in
! old As and 5s at the prices tn n current.
| and purchases were made Of $19,20Q,G50.
In May. 1900, the Secretary OF the Urea
sury gave notice that the rs of the
funded loan of 1891 would be paid on
presentation and interest would stop on
| them August 18th BY that date $13,221730
had been paid of the total Of SO. $50,
| and on S 7ptember 18th $i,T0o,750 remained
unpresented, free of interest.
The largest contribution of relief, how
| ever, was by the act of March Ii, 1870,
| That provides for the exchange of IS,
SIS and old As for new consols at 2 per
cent During the six months which have
elaDsed such exchange has been MADE
| to the amount of $3.50, 1lI,S5o, which is
39.57 per cent. Of the bonds elislo!e-to
| Wit: $S39, 146,340. OF these redamptons
! SIG So, $50 was i'll SIS, being 3S.i p T cent.
| of that class; 1902 659.90o in old As, 3l.lG
| per cent of that class, and $50, l2D,95o IN
| SIS. being 5591 per cent. of their total
| last March In the exchange the Trea-
| sury paid out $50, $4,000, and net Saving
of sS.41S.Go5 was mad to the Government
| in the transactions, while there was no
! increase of the public debt.
| The Treasury, September 14th. h7ld OF
| bonds subject to exchange. S233II63o ftr
! circulat ton, and s!o.SI9,0So for deposits:
| For these new consols may be Civ n. ana
| if that were done they would become
| 1896. S74 $50, and the net saving over TN
million dollars with payment IN pleih1-
! urns of $40GOo,00t
| BONDS PLEDGED
! AS a consequence of the provisions OF
the new financial law the bonds pledged
| for national-bank circulation ran UP from
COCO o47 30 on March 14th TO S296,It2, SSt
| September 18th The whole volume OF
banl,-notes, including those securSd pS
! money. increased between me same
| months pv SIP, 4t5.e5S, and became
| soc, Sco oec which is more than ever before
\ greater addition to the available re
| sources Of trade and industry was the
deposit of public funds in the national
banks. This was not new device, put
an endorsement Of wei! eslaDIlSheu
practice.
Denosits were granted to every bank
applying with proper security Whiie t ne
surplus permitted, and about G5e0oO,000
| was kent in the Treasury. The moneys
so nlaced were at their maximum tebru-
arv 10th. 1900, at $1O9094,SlS including the
credit of disbursing officers and We're re
duced to 500, 40, 49S by September 18th. me
depositorles number 4t0. and they are
found in every State except MISSISSIPPI
and Nevada, and every Territory except
Arizona and the Indian Territory. Inc
banks holding $4,000 or less are 10; from
$50 GOO to 100000, SO: from S1o0,c30 to $780,
coo, 81: from $4,000 to $4,000 81: from
$4,000 to 81, o0O,O09. 10; over $l,000,Vo0, 10
May %, to prepare for payment Of old
;; twos, a call was made on these depositors
pro rata and in June second and a
third call followed to the aggregate of
s14,S53,7O0. No single institution, no one
city could have paid that money more
promptly and with less friction than did
these four hundred and forty banks all
over the country.
This is the plain story of the putting
out of Sis, 600. 600 from the Treasury above
current expenditures.
With its mingled verdure and blossom
and fruit, the orange grove of the Indian
River of Florida. or the extensive ranches
of Southern California, is a triumph of
arboriculture. More rich in it's yellow
| fruitage is the policy which from the
Treasury scatters to all nlarts the treas
IRE which no orchard can equal. which
serves more human needs than orange or
apple or ponlegranate
SEVERE CONTRACTIONs
a severe contraction would have follow
ed government operations running loose
without such care and vigilance The
funds We're left to fructify in the marts
| OF trade. Largely available for any emer-
| gency, the business of the country had
| the benefit of them. The full force of the
| national wealth was turned upon all the
snsinery of industry, of commerce and OF
finance.
The chronicle is brief, but the facts are
impressive and the results are consp.c-
uous. Except for the fiurries in Noysun-
Der and December 1892 which were
entirely apart from Treasury operations.
quotations for call money have not been
| above 5 to Z per cent. and then for only
a short period, while the ruling rate,
although touching 211a has ranged from
III 10 2Aa per cent. Prime commercial
papsr has found sale from So to l. and
seldom has the quotation been above IA
though occasionally touching 5 per cent
These low rates for money, the lowest
in thu world, have brought Russia and
Britain to borrow from, us. and Japan
and Sweden to seek loars here, last o.
ali, Germany takes s2o,0Oo,eo9 OF ou-
money. New York has becoma on. 81
the two financial centres Of the word.
Without the outflow from the Treasury
q II @fhiS would have bsen in,possihIa