The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-11-13
HOW GOLD LAWS WORK
United States Treasurer Re-
views Finances of the Year.
SILVER IN SMALL COINS
CIRCULATION INCREASES LIT
TIE IN TEN YEARS.


Washington, Nov. 12.-The annual re
port of Treasurer Ellis H. Roberts on
the operations and conditions of the
treasury was submitted to Secretary
Gage today. Mr.. Roberts says the
growth and prosperity Of the country
and the general activity of business are
reflected in the transactions Of his Of
fee. The net ordinary revenues of the
government for the fiscal year were
1857, 24O So, the largest in the history Of
the country, excepting those of 1866.
the next highest, by S47, 291, 2S8. The in
crease of S51, ESQ, 232 over the preceding
year was contributed from all the gen
eral resources, but chiefly from Gus
toms and internal revenues. On the
side of the expenditures there was q
net increase of .S17T. 35S, 1888 in cOmpar-
ison with 1899 so that the deficiency Of
$50 11l,560 for thar year was converted
into a surplus of $40, 527, $50 IN 1900. The
gross receipts under warrant, including
those on account OF the public debt,
were 49,, 299, 262, and the disbUrse-
ments S1,195. 943 Az. a large inc case on
both sides over the previous year.
With the exception Of July. 1899, when
there was a deficiency of IS sos, 832. a
surplus was realized for every month of
the year, the one for June being the
largest, at S17.9S5.159. The largest re
Celpts for a single day were S5,l99,5l3
Feb. IS, 1900. and the largest eXpendit-
ures 81. sos. 000 July 3. 1860.
The largest surplus on any one day
was $4,047, 1856. Aug o. and the largest
deficiency S2,5l6,62l. July .. 1893.
New Law IN Operation.
Promptly upon the enactment of the
new finacial law the divisions of issue
and redemption therein provided for
were established, and to them were
transferred the records and accounts
relating to the issue and redemption of
United States notes gold certificates.
silver certificates and currency Certffi-
Gates. Up to Oct 1, 1900 $50. $50 S54 in
United States notes and s., 594, 70S in
treasury notes We're redeemed in gold
out Of the reserve fund OF $3.50. 600 000
Each day the notes so redeemed were
exchanged for gold from the general
fund. SO the reserve was kept intact in
amount and character.
Besides this reserve fund the trust
fund, consisting of gold coin, silver dol
lars and bullion and United States
notes, amounted. on the day the act
became a law, to $723, 062. 2S3, and in
creased by Nov. 1, 1900, to $40 800 $50.
Exclusive of the reserve fund. the
available cash balance of the treasury
was greater June go 1900, by $24, 8S7, 1913
than at the same date in 1899. but this
gain was partly offset by a decrease of
SS,663,274 in the next ensuing quarter.
The cash assets. beyond liabilities. were
S49l23,017 on June 80, 1899; $50, 327. SOP on
June 80, 1900, and 41,1S3, 100 on Ooct. I,
1900.
Bonds Are Purchased.
AS the receipts of the treasurer were
greater than the needs of the govern
ment, measures were adopted by the
secretary of the treasury for the pur-
pose or restoring the surplus moneys to
the general circulation. These measures
included prepayment of interest and an
offer to purchase t and per cent bonds
up to S25, 000, 600, and notice that the
S25,364, 800 then outstanding of the per
cent loan of 1891 would be paid on pre-
SentatiOn. Up to Nov. I the Tedemp-
lions under this notice were S23, los, 800
leaving s., 255. 600 outstanding. The bond
purchases under the call for and ;
per cents amounted to SIG, 300 $50, with
an additional s., 37S. SOP for premiums
The exchange of . per cents. the old (
per cents and the new per cents for ,
per cent cOnSOls. under the provisions
OF the financial act, has proceeded
steadily. The total amount of the eX-
changeable securities outstanding was
$3.50, 146,340, and by June go, 1907, 125. $50
or 1855 per cent Of them had been con-
Verted into the new Is. The premiums
amounted TO S3O,1TS,552, and IN the
transactions $50 404. $50 was paid out Of
the treasury, after the adjustment of
interest and some other accounts. The
saving of interest effected by the Oper-
alton is placed at $42. 592,771. and the
net saving at SS.6043l1 On oct. 1 out
of 1896, T75,130 in bonds held by the
treasurer as security for the circula ting
notes Of national banks, s263, O75 600
were new IS.
Amount Of Circulation.
The aggregate amount of money of
ali kinds in circulation on Oct. I, 1900.
is estimated at 81 49, 294, 9S3, an increase
of S1S0S10. 744 in fifteen months, of
which S94 40 $50 was due to the en-
larged use of gold and gold certfcat ties.
The increase per capita was from S25-3S
TO S27O1. The per capita of gold at the
latter date was $1,000, which is greater
than thaC of all the currency in 1862.
while the total Of gold is greater than
all the circulation at any time previous
to July, 1879.
on oct. l. 1924 per cent of the total
circulation was in gold and gold Ger
tificates. 26.45 in silver dollars, silver
certificates and treasury notes, 1886
in United States notes and 1911 per
cent in national bank notes. It is a
significant comparison that on June so,
1880, the percentage of United States
notes was 22.5S. Two years earlier it
was as high as 32.01- While the volume
of United States notes, treasury notes
and silver certificates is limited by
statutory provisions, the stock of gold
is constantly growing. The metallic
stock Of money is estimated for oct. 1,
1900. at 81 O59. 2SS. $40 in gold, $3.50, 355 ,367
in silver dollars and bullion and $780,
600, AS In fractional silver com, an ag-
gregate Of 81 III, ga. 935.
Gold Deeper Entrenched.
The act Of March II strengthened the
guarantee for the maintenance of the
gold standard. both in providing for the
setting apart of a reserve fund and in
adding One-haf to the 500 600 900
which, in the practice of the depart
ment. was formerly maintained without
specific statutory requirement. The
ratio O fthe reserve to the fixed volume
of United States notes was raised from
2SS5 10 1927 per cent. While the ratio
of the new reserve 10 the sum of both
classes of legal tender notes was orig
inally only "a per cent. the gradual re-
tirement of the $S6,770, 900 of treasury
notes outstanding at the passage of the
act viii reduce the demands on the
funds to that extent
The inflow of gold in consequence of
the material conditions prominent
among which is a faVOTRb bile trade ball
auce averaging S563. 2S3. 2O9 in the last