The Montgomery advertiser., 1901-10-12
TREASURY TOO FULL
PRESIDENT URGED TO PREVENT
 ACCUMULATIoN.
Henry c. Payne Advises Repeal of War Revenue Act-Fowler Favors
 Retirement of Block i, of Greenbacks.

Washington Special to Chicago Chronicle. One of the strongest and most persist ently reiterated demands that have been made upon President Roosevelt relates to the surplus growing out of the operations of the war revenue act. Many Of the Presidents most intimate advisers have urged him to make this subject Of the surplus a conspicuous feature or his forthcoming message to Congress. and to advise Congress radically to amend the war revenue act so as to prevent future accumulations of surplus moneys in the treasury.
 Henry c. Payne, vice-chairman of the Republican National Committee, has dis cussed the surplus with the President from every possible standpoint.
 He has made 1t clear that the business men of the United States do not regard the policy adopted by Secretary Gage of purchasing monds to relieve the money situation as anything better than a mo- mentary expedient. and that distribu- ton of the surplus among the banks Of the country is useless
 Must Stop the Surplus.
 Mir. Payne has endeavored to make It clear to the President that the only way to avoid the dangers that have been so clearly apparent on many occasions dur- ing the past two years Is for Congress 10 make the accumulation of surplus in the future impossible.
 Representative Henry Sherman Bouteil of Chicago will urge this view upon the President tomorrow. MT. Boutell Is In favor of repeating the war revenue act and substituting for 1t another measure which, while 1t will produce all the reve- nue needed by the Government, will not pretend to be something which 1t Is not. There is a growing sentiment among members of Congress, from Western States especially, that the operations Of the war revenue act as amended by the fifty-sixth Congress show conclusively the necessity of either further amending that act or repeating 1t.
 President Waits for Gage. According to close friends of the Presi- dent i1e is disposed to accept the views of members of Congress who want the act further amended and the revenues cut down. The President however, will not take any steps in this direction until the return of Secretary Gage from Colo rado. He has been assured that Gage will object to further reduction of the revenue, | just as he objected to last winters re- duction but it is believed that the Presi- dent will find a way to make Gage un- derstand that his objection will not count unless he can show conclusive cause. Representative Fowler. who will be chairman of the Banking and Currency Committee of the next House, will make an effort to use the surplus to retire 8 large block of the greenbacks. MT. Fow- Ter, who will. be assisted by other men of the same opinion as himself, would adopt one of two plans.
 Wishes to Cancel Paper.
 He would either cancel $50. GOO or $100 000 GOO outright without replacing the notes with any other class of money or he would take from the available cash about $100. .000,0O0 in gold, which he be- lieves could be spared place that amount in the reserve fund of the treasury and then, as a like amount of United States notes came in, cancel them and issue gold certificates against the additional gold placed in the reserve fund.
 The reserve fund Is now S15O, 900 and the addition of $100, 0,000 900 to the fund would put the figure at $250,000 900. Mir. Fowler and other advocates of the retire. ment of greenbacks would follow this policy until the treasury contained noth- ing but gold or it's representative In the treasury, removing the danger that con fronts the country in case of panics. Cash Balance is Larger.
 The available cash balance In the treas ury now is over SIP, ,OOO.o GOO. independent of the reserve fund. which Is always in- cluded as available. The sum of SIP, ,o00- GOO in cash account is anywhere from SIS. .0OO, 900 to $10O, GOO GOO more than Is nec- essary in the treasury to the transaction of Government business Of this sum more than $100 0O0, GOO is in gold coin bull lion and gold certificates. In the division of redemption an offset to gold certi- ficates is over $300. 100000 of gold coin. {. There are going to be some extraordi- nary expenditures before the end of the fiscal yesf-possibly $20,0O0 GOO for the pay ment of claims adjusted by the Spanish Claims Commission and &,00O, 900 for the tobacco rebates. The amounts may go beyond this, but the surplus will care for all this without trouble.
 National banks hold $1oS. .506.1 .122, which is the largest sum of Government money ever held by the banks except during the period from 1898 to the early months of 1900 The amount of United States notes outstanding October,1 was $346, ,6S1, ,016, and 1t is from this sum that MT. Fowler would begin the process of greenback retire. ment.