The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-08
POSERS FOR SHAW
How Will he Deal With the Treas
ury Surplus?
HOW WILL PANICs BE AvoIDEDa
How Maintain Expanded Condition
Of Trade and Credit Until
After 19O49
.Jo,sr,.a. Bureau, Room Is. Pos,

B,.isding. Washington.
Washington, Jan. S.-The new score
tary Of the treasury. Governor Shaw OF
Iowa, will be confronted with series of
important problems immediately upon his
entrance into office. For newspaper pur-
poses these problems may be said to be
four In number:
How to keep the treasury surplus with
in reasonable limits without paying ex-
travagant prices for unmatured bonds.
How to prevent the accumulation Of an
excessive surplus.
How to withdraw public deposits from
national banks without causing panic.
How to maintain the present expanded
condition Of trade and credit until after
1904.
Secretary Gage has handled the finances
of the government with great skill, but
in dealing with the increasing surplus ne
has exhausted most of the ordinary re-
sources. The purchase Of bonds at
premium has continued steadily since the
close Of the Spanish war, until the margin
of bonds which can be purchased at a
fair rate has been pretty well absorbed.
In two years the bonded debt of the coun-
try has been reduced $92, 021,S7O, and the
annual interest charge has fallen from
$40, 347,SS4 to SIS, All ,228. Interest mas
D60n
$54, 548, 424 within the seven years alone.
But in spite of all these things the cash
balance has continued to increase until IL
stood at S173,848,531 the Saturday after
Christmas The record of the last three
years, therefore, has been one OF imam
ciering to keep down surplus =.
|, Eastern business men believe there Is
danger of collapse Of speculation with.
in the next three years. Secretary cage
in recent interview was hopeful as totne
future, but limited his positive predictions
to the present or the future close at hand,
The problem of the surplus may solVe
itself If business depression sets IN ana
receipts for customs and internal revenue
begin to decline In such an event 1t
NAV he necessary to repeat President
Jackson's program when he undertook 10
withdraw public deposits in the face OF a
tightening money market. The banks
would find it difficult to reduce their re-
sources $114, 900, 900 in response to govern
ment calls, and the new secretary OF the
treasury would probably have TO- choose
between having the government lose us
own credit by cash deficiency or sacrlnce
business credit by crippling the banks.
Secretary Gage has administered the
treasury department during the most pros
porous epoch of American history. he
will step down and out when that Pros
perity is apparently at it's height, but the
there are many reasons for believing tnat
Governor Shaw, should he retain the
treasury portfolio for several years, may
find himself as hard pressed at times as
was Secretary Carlisle during the panic
years Of the second Cleveland admlnis-
tration. It is reasonably certain that the
present period of unusually good times
viii not continue long beyond 1904; it will
be the endeavor Of the republican party TO
have it continue at least that long. Gov
ernor Shaw. it will thus be seen, cannot
look forward to the period OF repose anu
good cheer which have characterized the
Gage administration of treasury afalrs.
He will probably have to weather some
storms and that is why the tinanclal
world is interested in knowing what his
policy as secretary Of the treasury IS 10
be. and how he proposes to face the on
coming problems which for several months
have been engaging the attention Of Mr..
Gage.
Eleven Months Trade.
The course of the domestic trade OF the
United States during November, and FOR
the elevn months ending with November
is generally satisfactory. The treasury
bureau of statistics, reporting on lnterna ma
trade at interior centers, shoWse tnat
Minneapolis, Duluth, Milwaukee and Chi
cago received 101. O10, 10S bushels from
spring wheat territory for the first quar-
ter of the current crop year, being a gain
of 80 Der cent over the first quarter OF
1900 At the winter wheat markets OF
| Toledo, Detroit, st. Louis and Kansas
YEAR. on the contrary, show "a decrease
in receipts from 46, AL ,47S bushels to 3d.
! 79S,72S bushels.
Arrivals of live stock at five western
markets for the first eleven months OF
| 1901 we're as follows, including only cattle,
I (S~s
hogs and sheep: Ch las 10 .sol,Do'
4.155, 1882 head: St. Louis, 3,444,762 head; ;
| St. Joseph, 2,779,777 head, making total
! of &c, 32O, 55S head, compared with H,977,-
i 1855 head in the same months Of 1900.
Baltimore and Washington are eating
| imported potatoes. The price of the do
nestle article has gone so high that the
bringing consignme nts from Scotland.
| The import duty is rs cents a bushel.
One steamer that landed at aBltimore a
few days ago brought In $4,000 bushels of
Scotch potatoes.
Vast National Park.
| Representative Jenkins, of Wisconsin,
has introduced bill providing for the
creation Of a vast national military park
surrounding the battleaelGs of Freder-
| icksburg charlottesville, Salem Heights,
the Wilderness, and Spottsylvania. These
points are close together, and for a good
many years the old soldiers have been
trying to induce congress to establish the
Il park, which is proposed In the Jenkins
bill More than 100000 confederate and
union men were killed and wounded in
the enga gements in question.
It has been proved by statistics COM
piled by the postotfice department that
one fourth class postmaster out of every
eight resigns. For every vacancy there
I, are an average of five applicants, AMID the
strife for these positions is the fercest
in the whole range Of federal patronage.
There Is total Of 72,429 fourth class Of
II fees in the country, and last year there
were 1871 designations, an increase OF
1877, as compared with the preceding year;
Pauncefote After a Clean Slate.
1t is limited that Secretary Hay and
Lord Pauncefote will take UP In a short