The Van Buren press., 1900-01-13

1t will be readily recognized that the
absorption of S2OV, 100000 within The space
OF q few weeks could not fail to disturb
most seriously the general business of the
country. The secretary of the treasury
feels some measure of just pride that the
financing of the war loan of 1898 was ac'
complshed without the slightest inter.
ruptionto that revival of commerce and
the Industries of the country which mas
made the present period OF unexampled
prosperity.
BY the end Of 1898, the number of ma.
tionl repositories had been increased 70
316, located in 43 states and territories,
andholding S94, $50, 900. The New YORK banM
were able to control more bonds and
qualify themselves in larger proportions
than the banks in the interior cities.
With view to securing more equita'
BILE distribution of the funds, the secre'
tary, early in 1899, designated forty OF
fifty additional repositories, and, while
thus increasing the repositories outside
of New York city he at the same time
drew down the balances in the New York
city banks
With the beginning of the present fiscal
year. the treasury was feeling the inilu'
ence of the revival of commerce. For the
six months ending with December 81, 1883
the excess of receipts over expenditures
aggregated s2l ,026, 900. This absorption OF
money from an active use into the treas,
ury, where 1t could serve no present useful
purpose was a source of apprehension 10
the public and of anxiety to the depart.
ment. The situation was intensified by
he fact that the fall movement Of cur.
rency TO the interior, for the movement
VI crops operated to reduce the cash re.
serves at all commercial centers. The
secretary was indisposed to increase de.
posts In public repositories, and, In or
der 10 avoid that, he offered to anici'
pate interest on the public debt and, later,
offered to buy S25, 100000 of bonds. The
movemNnt towards stringency In the
money market had assumed too great
momentum to be averted by such means,
December Is, financial panic occurred.
Prices of investment securities fell ruin
ously. Interest rates rose to fabulous
rates and general construction of the
money market was apparent. While this
state of affairs found its most violent ex-
preston in the security market, 1t ex-
cited a state of anxiety and alarm
throughout our Industrial and commercial
communities. The situation was believed
to be so grave as to Justify the utmost
interference. The receipts of the treas
ury for December, It was perceived, would
exceed the expenditures by seven or eight
millions. Under these conditions q pc
cuiar responsibility was thrown upon the
treasury.
The statutes conferred authority - pls ,e
public money except customs, in desig.
mated repositories, and gave power to re-
live the situation without possible preJu-
dice to the treasurys needs. II was, there
fore announced, December Is, that the
secretary would deposit internal revenue
collections with depository banks to the
amount of thirty or forty millions, should
80 much be applied for.
From this point on the secretary
makes direct answers to the congres.
sional inquiry. His principle of action
has been to so manage the receipts and
expenditures as to produce the least
disturbance in that part of the money
supply which must be at the service OF
commercial and industrial use.