Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1901-10-03
FINANCIAL PROBLEM.
Great Danger In 4 Large Surplus
In the National Treasury.
PRESIDENT ROOSEVELT TO SOLVE IT
Secretary Gage Speaks About the Prosper
Gus Condition Of the Country and the
Revenues end Expenditures Of
the Government

koosevelts first financial problem ID
to be that Of having too much money
on hand. The dangers arising from,
q large surplus, according to treas
ury experts are two-fold-frt, the
fact that every dollar drawn into the
treasury is taken out Of general cir
culatlon, and, secondly, tho fact that
the mere existence Of y large sum Of
money lying idle in the treasury
serves as IN incentive to members
of congress to vote laws providing
for the widest kind Of extravaganza.
Under the present national bank sys-
TEN government bonds have become
an actual necessity, because ON them
is based exclusively the circulation
issued by the national banks. A large
percentage Of the outstanding bonds
Of the government run for long term
of years. The refunding operations
carried on after the Spanish war have
retired the greater portion of the
short-time bonds so that of the loan
Of 1904, which is redeemable after
February ! of that year, there is now
outstanding only a little over $780,
100000. Holders of bonds will not
sell them back to the government at
a penny less than their value as long
time securities. As it is impossible
to buy bonds therefore the problem
which President Roosevelt is called
upon to solve involves either a radical
reduction in the rate of taxation or a
corresponding increase in the annual
expenditures, or, finally some system
by which the government surplus
may be kept in active circulation
among the people, to whom it be-
longs. The surplus of the first three
months Of this fiscal year will be
about $l6,0OO,0OO in round numbers.
At the same rate the surplus for the
whole year would be about $64,0O0,-
300. This would be reduction in
the surplus Of only $11, 100000, as CON-
pared with last year. Not a dollar
which is once paid into the treasury
Of the United States can be paid out
again by any one except for regular
expenses Of the government under
specific appropriations made by con-
gress.
Secretary Cages Statement
Chicago, Oct. 1.-Secretary Of the
Treasury Gage, who is staying few
days at the home Of his son in
Evanston before going TO Colorado to
spend his vacation, said in regard ia
the present large surplus in the treas
ury. "The prosperous condition Of
the country must be most gratifying
From June 80, 1901, to September 20
the revenue amounted TO $4,000, 900
The expenditures during this time
were $12l,OOO,OOO. This left al excess
Of nearly sls,ooo,oOo. During the
same period in 1900 the receipts were
si3s, 100000 and the expenditures thu
same. It was estimated when thu
present revised revenue law was put
in force on July l that the revenue
receipts from all sources would fal
of some $4O,OOO,0OO by reason OF thu
reductions made. II that had hAA''
'sslized the receipts since that tint
would have been s7,5Oo,OoO less, Of
sl2S, 100000. Notwithstanding the re
iuction in taxes, the receipts hav,
diminished by less than $s,oO0,OO'
from what they were a year ago
while the expenditures have decreased
by over $l7oOO,OOO for the same pc
riod."