The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1900-01-13

1t will be readily recognized that the
absorption of 500, GOO, 900 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 wal loan of 1898 was ac-
~complished Without the slightest inter-
ruptionto that evfva of m and
the industries of the country which has
made the present a period of unexampled
prosperity.
BY the end of 1898, the number of ma
toni repositories had been increased to
S16, located in 43 states and territories.
and holding $94, $50, 600. The New York banks
were able to control more bonds and
qualify themselves in larger proportions
than the banks in the interior cities.
With a view to securing a more equita-
BILE distribution Of the funds. the secre-
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 infiu-
ence of the revival OF commerce. tnor the
six months ending with December 81, 1899,
the excess of receipts over expenditures
aggregated $21, ops, 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 to
the public and of anxiety to the depart
ment. 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 re-
serves at all commercial centers. The
secretary was i~ndisposed to increase de-
posts in public repositories, and, in or
der to avoid that, he offered to antici-
pate interest on the public debt and, later,
offered to buy $25. 600, 900 of bonds. The
movement towards %stringency in the
money market had assume too great a
momentum to be averted by such means.
December Is, a financial panic occurred.
Prices OF investment securities fell ruin
ously. Interest rates rose to fabulous
money market was apparent. While this
state of affairs found its most violent ex-
preston in the security market, 1t ex-
cited q 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
millions. Under these conditions, a pc
culiar responsibility was thrown upon the
treasury.
The statutes conferred authority to place
pubic money. except customs, in desig-
mated repositories, and gave power to re-
live the situation without possible preju-
dice to the treasury's needs. 1t was, there
fore. announced, December IS, that the
collections with depository banks to the
amount of thirty or forty millions. should
so much be applied for.
from this point on the secretary
makes direct to the
sional inquiry. His principle of action,
has been to so manage tie receipts and
expenditures as to produce the least
disturbance in hat part of the money
supply which must be at the service of
commercial and industrial use.