The times. [volume] (Washington [D.C.]) 1897-1901, 1900-01-11
Conduct of the wnr Lam
In the conduct of the war loan. the
Treasury again resorted to depositary
banks, and their use as such may be seen
from the following statement.


These deposits were scattered throughout
the length and breadth OF the land in forty
three States and Territories. December 81
1898, the number of national-bank deposit
taries was 316. In the course of affairs.
just reviewed the depository banks in the
city of New York were able to buy more
bonds and thus qualify themselves in a
much larger proportion than the interior
cities and smaller towns throughout the
country
Yet many applications TO be designated
as depostaries came from such quarters
after the money for the war bonds had
been substantially paid in, and there APP
peared to be no further need for diverting
the funds from the subtreasuries. With
view. therefore, to secure a more equi-
table distribution OF the depositary funds.
beginning early in January. 1899. / desig-
mated between forty and nifty depositaries
throughout the country, and directed the
internal-reyenue receipts. or a portion
thereof. TO be deposited in such new de-
positaries. At the same time transfers
from the New York City banks into the
subtreasury were ordered, thus reducing
the proportion of the total funds held by
the New York City banks On January /,
1899. the New York City banks held total
deposit of $40 ,215, 49, By the 30th OF June
the following changes had occurred: New
York City banks had been reduced TO s24,-
6S6,S91, and the other cities. towns. and
villages had been increased from s5O.51Os7g
on January !, 1929, TO S54, 624 4Sl on June
60, 1899. These operations. covering a Pc
riod of six months. had therefore resulted
in decreasing deposits from a total of about
s9i, 600. eco January !, 1899 TO total OF
about s79 900, 900 on June 80 Of that year.
Thus closed the fiscal year 1899, and this
point Of time marks another important
change in the course of the public finances.
The National Treasury had at last begin
to feel the influence Of the revival of com
merce and the industries under the revenue
legislation of the Fifty fifth Congress. and
with the closing month Of the last fiscal
year the Governments receipts showed a
marked tendency toward Improvement. The
wider activities we have been enjoying
have been reflected month by month since
the opening OF the current fiscal year by
increasing receipts both from customs and
internal revenue. Six months of the cur
rent fiscal year have now elapsed. and for
the half year ending December 81. 1899.
there was an excess of receipts over ex-
penditures aggregating S21,02G,93 This
absorption Of money from an active use
in trade and commerce into the Treasury,
where IL could serve no present useful
purpose was the source of apprehension
the public and OF anxiety to the de
partment. The situation was intensified
by the fact that the fall movement of cur
rency TO the interior for the movement of
crops operated TO reduce the cash reserves
DIT all the commercial centres and to Gis-
turb the ability of the banks 10 continue
their operations as leaders Of credit.
An Ancient Policy.
For more than half a century it has
been the established policy Of the Gov
eminent to endeayor. wherever It may. !
10 contribute toward the avoidance Of /
commercial disaster II Secretary Win |
dom may be quoted as an authority. at
tention IS called to the following extract I
from his annual report for 1890:
The policy anmding "friicf TO tic money |
market now 20 much criticised 50 certain !
quarters, j, To- iueaus new thing. IL has |
been the uniform policy oi the Government, I
when possible IN al commercial crises from 4
lsic 10 tie present time.
Indisposed to increase deposits in public I
depositarios. II IL could be avoided on Oc- !
tober 10. 1899, offered to anticipate. until |
December 81 1899, interest coming cue ~
any time during the fiscal year ending |
June 30. 1900. This offer was accompanied |
by the requirement that the beneHcarics !
Of such payment should allow 10 the Gov I
eminent q rebate on the interest so re- /
ceYed at the rate OF "a per cent per an !
num- Had all the holders Of the public I
debt applied for interest payment under I
this offer, SOC. 600 600 might have been thus ]
used As a matter OF fact, however, the !
applications were so few thai only s., 2lg,-
$3.50 Was dIsbuIsed.
Percelring the fuulity Of This method Of
the Treasury's absorption of funds
which were needed in active business, |
offered TO buy for he sinking fund. any
part or all Of S25 GOO .0Cc az those Issues Of
Government bonds nrsJ maturing. e. the
IS OF 1904 and the As C1 1907. the total
issues Of which amounted 10
s6J9. $50 800. The price al which the Gov
ernmeut would buy these bonds was fixed
AZ the current market price OF the day pre-
ceding the announcement This PROPOSE
lion. Of which Congress was duly advised
in my last annual report, was kept open
until December %, 1899. but only $4,000
$50 OF the bonds were presented for sale in
response 10 the departments offer.
In the purchase OF this amount the Gov
ernment disbursed S2l III. S66. While hold
Prs Of such bonds were given until Deeem-
Der % last TO present thcm FOR redemption,
offerings TO the Treasury ceased substau-
tally about December D the price of the
ponds having advanced in the market to
Doint ono and one balf per cent higher than |
he price offered by the Government.
Perceiying that the fun amount OF bonds
hus desired would not be receIVed ON De-
'embor IL. 1893, ! announced that coupons
or interest due January J. 1900. would be
.ashed gu presentation al any Of the sub