Evening star., 1900-10-03

DepOSJs NatfOHal haHSS.
greater addition to the ava-lable re-
sources of trade ard industry was the de-
pcsit of public funds in the national banks
This was not device, but an enlarge
ment of a wel!-established practice.
Deposits We're granted to every bank ap-
plying with proper security while the sur
plus permitted, and about s10,HO,D3D W.
kept IN the treasury. The moneys so place
were at their maximum February 10, 1903,
at $Ha.uJ4.SIS, including the credit of dis
bursing officers, and were reduced to sos
80, t!S by September IS The repositories
number 40, and they are found in every
state except Mississippi and Nevada and
every territory except Arizona and the In
dian territory. The banks holding $4,000
or less are 17D; from s50.ei3 to S1JuGJo a3:
from $1GD,Ho to s2oo.03o. 81: from s2m,G90
to sJsj,wo. 81: from S5C0Uo0 to 81. .pn 600 10:
over 81 .;s3.0D0, IL.
May -. to prepare for payment of old
twos, call was made on these repositories
pro rata, and in June a second and third
call followed, to the aggregate of S14 So, 100.
No single institution. no one city. could have
paid that money more promptly and with
less friction than did these 44o banks all
over the country.
Contraction Averted.
This is the plain story of the putting out
Of s1IS0oo,o00 from the treasury, above
current expenditures.
With its mingled verdure and blossom and
II iuil, tle oId dHSe grove Oh the lnulan river
of Florida, the extensive ranches of
southern California, is triumph of arbori-
culture. More rich in its yellow fruitage is
the policy which from the treasury scatters
to all marts the treasure which no orchard
can equal, which serves more human needs
than orange or apple or pomegranate.
A severe contraction would have followed
government operations running loose with
out such care and vigilance The funds
were left to fructify in the marts of trade.
20 nv a-,np
business of the country had the benefit of
them. The full force of the national wealth
was turned upon all the enginery of indus
try, of commerce and of finance.
The Money Market.
The chronicle is brief, but the facts are
impressive and the results are conspicuous.
Except for the f1urries in November and
December 1889 which were entirely apart
from treasury operations, quotations for
call money have not been above to per
cent and then only for a short period,
while the ruling rate although touching
2ia. has ranged from Ia TO IA per cent.
Prime commercial paper has found sale
from 3i2 to l. and seldom has the quotation
been above Az, though occasionally touch
ing : per cent.
These low rates for money, the lowest in
the world, have brought Russia and Britain
to borrow from us, and Japan and Sweden
to seek loans here. Last of all, Germany
takes $50. 900 of our money. New York
has become one of the two financial centers
of the world. Without the outflow from the
treasury all this would have been imposSi-
BILE.
We all rejoice at large exports of wheat
and corn and meat products. We each feel
a personal pride in American mastery in
iron and steel manufactures. and accept ii
as a compliment to ourselves. When the
London Times says that America makes
better locomotives than the English, our
hearts beat quicker In the export of $50
each
cain a share. Russia buys from us in one
lot 5000 fat cattle, and no farmer regrets
the trade. We count it fortunate for all
our people that we exported of our manu-
factures SAB, 2S4 366 last year, which is
more than the total of our merchandise ex-
ported late as 1870. The balance of trade
in our favor for three years averages so69,-
9I6, 396. To our stock Of gold every year
since 1886 has been added more than $780,
0o0,ooo on the average-a record never be-
fore known among nations. The gold In cir
culation including certificates, has reached
$S31 .0s4 COS, which is more than all our cur
rency prior to 1850. and is $10.63 per capita
of our population, which is higher than the
total circulation in 1862
In spite of the vast outffows the gross
gold in the treasury is the largest ever
held. s439. .241 ,511, and it is growing. Ex-
cept the abnormal hoard of $450,O00,OOO of
the Bank of France, likely to be soon re-
duced there is nowhere else in the world
SO much of the yellow metal under single |
control. If this flow of gold shall satisfy
the appeal for more money, how healthy our
currency will be.
The wealth of our people by the new |
census will not fall below 500 900, 900, 900, and
their annual net production is at least 81 |
500, 100000. This wealth and this growth |
are beyond parallel in human annals.
They explain why the world comes to us |!
to borrow. But those who borrow from us |
must pay with interest. 1t is just as healthy |
for us to. export gold as it is to export |
coal or iron cotton or grain or pork or |
beef except as more labor enters into those |
articles.
In such facts as letters, American bank I
ers hang out their sign, like planet in |
the heavens: Money to lend to the nations; /
gold galore to spare But fair notice is |
served that the yellow metal must come /
back for of all countries now and hereafter, |
this is the home of gold.