The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1901-12-18
SECRETARY CAGES REPORT
Reduction Of Revenue to the Extent
Of $5O,0OO,OO0 Urged.
FINANCIAL REFORMS SUGGESTED

Proposes Federation of National Bankf
Into a Great Centr.- Institution Fol
the Distribution of Unemployed Re
serves Recommends "GuarInty
Washington, D. C.-secretary Gage,
in his annual report to Congress, takas
q stand against the war taxes, and suG'
gests that many of them be repealed.
and the Government revenue De cut
down to $50,000,0C0.
He also argues in favor Of amending
the national banking act, so as to pro-
vide for a more elastic currency and its
expansion in volume when increase
Of business requires it.
The Secretary inclines toward bank
which would be sort of parent in
stitution, though. he admits that pub
lie animosity toward central bank,
with power OF establishing branches,
is still too strong TO allow the serious
consideration Of such q project. He
luIaho, III" "GSCL, ludl luc 1uf dL-
tages might be secured through a fed
GRAFTON OF banks.
He fayors the transfer OF the burden
Of the redemption of greenbacks frcm
the Treasury to banks without interest
cost 10 the Government. The green
backs, Mr.. Gage thinks, would even
tually become gold certificates, which
he says they ought to be in reality.
Another matter which he treats Spe-
cially is his renewed recommendation
FOR remodeling and extension Of the
Act Of March 3, 1891, relating to the
carrying Of ocean mails by American
steamships.
"There is no reason why the United
States should be dependent on the aux.
iliary navies of European powers for
our ocean mali service" says the Sec
retary. =,
In opening his report, Secretary Gage
says:
1.-The reserve fund and trust fund
have been maintained. The redemp-
ton Of United States notes have been
each day adjusted by exchange for
gold, so that the full sum of $3.50, 0,G00,-
900 has been kept unchanged in coin
and bullion.
Upon the withdrawal of Treasury
notes as the bullion Of 1890 was coined
into standard dollars, silver certificates
under the Act of March IA, 1900, We're
substituted to the extent Of S10.743, 900
to July /, 1900, and $2S.244, 900 addi-
tional to July /, 1901. BY November
/. 1901, the total exchange reached
S45, 1886, 900.
1.-THE gold certificates upon deposit
of the metal were increased during the
fiscal year by $45, ,160,270, and In the
first quarter of 1902 by $31, ,S01, ,43O ad-
ditional.
"The gross gold in the Treasury, In.
cluding the reserve and the trust fund
against certificates, received an addi-
ton of 81, 1,27O,325.T4 during the fiscal
year, and a further addition OF S34,-
3O4, ,225 so by October l, while S13,631,-
327 more in October brought the as-
rregate by November to S542, S31 ,S49
This sum in gold was never before
euualled in our annals, and only for
few months some years ago has any
other government ever held so much
OF IuuC pFeClOuS hlct"A'
While the circulation per capita was
S26.50 on July 1, 1900, and $3.50 on
October l, 1901, gold certificates more
and more entered into the field OF large
denominations, and were used almost
exclusively in the payment of customs
duties and in the settlements At the
Clearing House in New York.
Two features are marked in the cur
rency-irst. the growing use OF gold'
and. second, the constant addition 10
the small denominations. of paper.
On March 4, 1900, there was III ex-
istence 2617 National banks. with au-
thorized capital stock Of S6l6,3Oe,o9o'
bonds on deposit to secure clrculatlon,
S244,611,57O; circulation secured DF
bonds. S216,374,975: and circulation
secured by lawful money, $3S, O21'93o.
COMPARING conditions on that day with
the close Of the fiscal year. 1901, there
is shown to have been q net increase
in banks of SCI; of capital, SD, 1,3oS, ,6OO;
bonds deposited to secure clrcuiation,
IS COZ 6GO: circulation secured by
bonds, S1O7,515,929.
The total amount of bonds purchased
and charged to the sinking fund OF
1902 from July 1 to November 10, IN
elusive, was $23, and the
amount disbursed was SAL, ,9S2 ,9S6o9.
Secretary Gage says that the reve.
mes of the Government from all
sources for the fiscal year ended June
80. 1901, were $699,316, ,530.02, Whlle
the expenditures for the same perlou
were S621 ,59S. .546.54, leaving a surplus
of $77,717,9e4.3S.
The estimated Government revenues
for the fiscal year 1902 are figured at
s6Ss. .633 O42, leaving an estimated sur
plus of 100000: the estimated rev
rnues for 1903 are SIP ,O20, $50. leaving
IN estimated surplus Of $23,112,3ll.o3-