Arizona republican., 1901-09-30
co URSs.
Secretary Cages Method in
 Relieving Stringency
The Secretary Has Purchased More
 Than Enough Bonds to Overcome < the Surplus-Ready to Meet Any
 Emergency.

OL ti-t tliilCd otdltS Has DtSOHiS tit | powerful and ever-ready ally of busi- ness. In its evolution. under the ope-- ation of existing financial legislation, is has grown steadily nearer to the great business world, until it now responds swiftly to every current or shock felt in the great financial centers. Where a few years ago it remained steadfastiy without the maelstrom of national finances in Wall street, it now plunges into the midst of the breakers to calm the storm. to quiet popular apprehen- sion and to save from doubt or ques- tion the stability of the public busl- ness. Its chief care. apparently, is the protection and preservation of public confidence.
 This readiness and pronlptness to go to the assistance of the financial cen ters whenever they are disturbed has naturally brought down upon the treas ury department the criticism that Il has become paternalistic and that it's present course and policy are somewhat removed from the original and proper purposes of the treasury.
 Secretary Gage is as much opposed to the present unavoidable policy of the department IS any of its critics could be. but he foresaw the direction in which q natural evolution was fore ing the treasury, and has prepared himself to face the inevitable and to administer the department according { to the letter and spirit of existing laws. It may be said confidently that Mir. Gage would prefer to have the banks hold all the bonds and to have the na- 1 tional treasury amply protected by se- curities. He does not believe in shu.- ting up money in the vaults of the {, treasury. when it could, by other poli- cies and legislation adapted to the pur- pose. be placed entirely in clrculation. outside of the gold reserve of $150, 900. coo. But In the present circumstances. the only way in which financial strin- gency may be relieved Is by the course adopted recently by the secretary os { the treasury.
 The relief of the stringency in the financial market. caused by the demand for money to move the western crops. and by a terrible national calamity,
 was due to the prompt and judicious increasing of the government deposits in eastern banks. and to the purchase
 of bonds. thus placing in the channels
 of finance a fresh stream of currency.
 Secretary Gage foresaw the coming crisis ma4sy montlls ago. hIfontng that the western crop movements woul1 severely tax the eastern money centers. or course the assassination Of the pres
 ident vastly intensified the situation by < increasing apprehension. But the remedy was Tn his hands. and the sec
 retary did not hesitate to apply it. : For the three months of the current
 fiscal year the aggregate Of receipts in
 the treasury is s1sn. .766.5s6. and the
 aggregate of expenditures Is si76.75s.- = 0SS- The excess of receipts over ex-
 penditures was s14.e02.i77. These ex-
 penditurss were ordinary expenses. as
 civil and miscellaneous. war. navy, In dians. pensions and interest on the
 public debt. Last year. for the same
 period. the treasury was practically
 even on receipts and expenditures. AS matter of fact there was no surplus
 last year at this time, while now the
 treasury has an excess of some S14.00o.-
 0o0- This excess is merely nominal It would be an actual excess if the treas ury had not done something that does
 not appear In the ordinary statements.
 The expenditure on account of the re-
 duct.on of the public deht is not inc;ud-
 ed in the ordinary expenditures. To
 give an Illustration: Last year the sur
 plus excess of receipts above .expendi-
 lures was. roundly s15.000.000 That surplus was reduced to an actual sur
 plus of s21. 900. GOO. by the fact that Mir
 Gage bought bonds cpd cancelled them
 to satisfy the requirements of the
 sinking fund.
 So, taking into Consideration so much of the fiscal year as has now passed there may be checked off against the surplus Of s14,0oo. .ooo. the amount dis bursed since July l, or the amount oi bond purchases to meet the sinking fund requirements. That amount l: s23. .4O6. .s25.
 The secretary of the treasury has therefore. not only wiped out th.:
 but r,1 contributed. by this reduction of ths public debt, an amount of S9. .404.0 .0o0 This effectually disposes of any sug- gestion that the treasury has absorbed by excessive receipts money that i: needed in the business world.
 Again, when a strinSency in tn, money market was threatened by tn. demand for money for the movement O the western crops. and by the shadow : of a great national tragedy. the treas ury increased it's deposits in the bank.
 by almost S. 900. 900. This makes nearl, ! s15.000.0o0 placed in the money markets : in excess of what has been withdrawn l There is another way of getting none, ) back into circulation in the financial [ centers. especially in New York. an, that is by paying in New York for goi' deposited in San Francisco and Seattle Recently it was ascertained that whil : the treasury had withdrawn s8.O00,0O
 from the New York banks fer shipmeI . to the west. it had nevertheless, pal, ! out about s15 1000. GOO for gold deposit on the Pacific coast. showing balauc l of s7,00O,00C in the east Nor shoul | sight be lost of the fact that the treas ury on the 18th of this month antici ]. pated the October 1 interest payment :. which amounted to S3.7O0.c30.
 5 All these efforts of the treasury. to gether with the declaration of Presi T dent Roosevelt that he intends to fo, e low the lines of policy laid down by Mi 2 Mckinley, have quieted whatever dis y turbance there was in the financis -l world.
 The recent distress has called atten