The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-01-11

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cific railroad Indebtedness payments. ag-,
gregating SIS, ,44S.223. 1t was thought ex-
pedient as a part of this enormous tram.
saction, to utilize for few days the SER.
vices Of depository banks a with the result,
that at the end of December, 1897. such,
deposits had increased to s$49, ,1S3,717. The
reason for this action wasito avoid the In.
furious affect on trade and industry of a
too sudden withdrawal from public uses
into the vaults of the treasury Of so large
sum as $5S,oO0 900. By the end OF May,
1885, these public deposits had been re-
duced to $2S,239359.
The Last Bond Issue.
Soon after this the government was
confronted with the necessity of raising
Immediately large fund for war purposes,
Acting under the authority of the war
revenue act the people were called upon
to subscribe an issue of $200,0O0,0 900 of
bonds.
On the day the books were opened the
National City bank. of New York, and it's
associates, offered to take at par and ac-
crued interest, any portion of the bonds
that might not be subscribed for by the
public, and on the same day ]. p. Nor
gan & Co. and their associates, numbering
fifteen of the greatest financial houses of
the country. subscribed for the entire is
sue of $500, 100000, or any part that might
not be subscribed for by the general public,
1t will be readily recognized that the
absorption of s200000-000 within the space
of a 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-
complished without the slightest interrupt
tion to the revival of commerce and the
Industries of the country which has made
the present period of unexampled pros
perity.
BY the end of 1893 the number of ma
tional bank repositories had been increased
to 316 located in forty-three states and
territories. and holding $94,s60,000.
Equitable Distribution of Funds.
With a view to securing more equita-
Bile distribution of the funds the secretary,
early in 1899, designated forty or fifty ma
tional repositories. and while thus increas-
ing the repositories outside of New York
city, he at the same time drew down the
balances in the New York city banks.
Growth of Treasury Receipts.
With the beginning of the present fiscal
year the treasury was feeling the infiu-
ence of the revival of commerce. For the
six months ending with December 81, 1899,
the excess of receipts over expenditures ag-
gregated s21,02 900. This absorption of
money from an active use into the treas
ury. where 1t could serve no present useful
purpose, was source of apprehension to
the public, and of anxiety to the depart
ment The situation was intensified by the
fact that the fall movement of currency 10
the interior for the movement of crops
operated to reduce the cash reserves at
all commercial centers. The secretary was
indisposed to increase deposits in public
repositories, and In order to avoid that
he offered to anticipate interest on the
public debt and later offered to buy s25.-
900 Of bonds. The movement toward
stringency In the money market has as
sumed too great a momentum to be averted
by such means.
How . Panic Was Averted.
December IS a financial pahic occur
red. Prices of investment securities fell
ruinously. Interest rates rose to fabu-
lous rates. and general construction of
the money market was apparent. While
this state of affairs found its most vio-
lent expression In the security market, 1t
excited state OF anxiety and alarm
throughout the Industrial and cemmsr-