Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-11-17
FINANCIAL CONDITION
Changes in Treasury in Five
Years.
INCREASE OF SURPLUS
NOTWITHSTANDING EXPENDI-
TURES FOR SPANISH WAR.
Some Figures Which Show the STAR
tling Strides in Prosperity
Made by Uncle Sam.
INCREASE OF SURPLUS

In five years the United States govern
ment mas paid for foreign war, that with
Spain; has bought and paid for islands In
the Pacific and Atlantic has carried on a
war in the Philippines at an enormous cost,
has increased its army to more than double
and its navy proportionately has erected
public buildings all over the country at i'm
| mense cost, spent millions in it's rivers and
harbors. and is better off financially than 1t
was before the war. How many millions
the war with Spain and the ensuing opera
tions and acquisition of territory cost is q
matter largely of opinion, as no separate
books were ever kept to tell the story. Es-
Inmates of officials and politicians have va
| ried, but the lowest figures are in the
| neighborhood of 5000, 100000. Therefore
| Uncle Sam has paid out of his pocket in
| five years the enormous sum of money
mentioned, more than half billion, and is
| financially better off than he before,
| with millions of shining gold and a credit
| that is better than that of any nation In
| the world. While his citizens have grown
richer and more prosperous he has likewise
| had prosperity, despite extraordinary ex-
| penditures on a gigantic scale. When he
! undertook struggle with Spain he puz-
| Zled himself a great deal to tell just how
| badly he would be in debt when he got
! through. He issued $19S 600 of bonds
and spent the money; he increased taxation,
but in a few years was getting along
| well that he knocked off the additional
taxes and began to buy back his own bonds.
Treasury Conditions.
| The condition of the treasury, compared
| to five years ago, is a matter of deep con-
cern and interest to millions of people be-
sides the student of finance On the last
| day of October, 1897, six months before the
| outbreak of the war with Spain, the total
| interest bearing debt of the United States
| was $S47 1866, $50. This included registered
and coupon bonds of all description. The
debt bearing no interest, for which there
was no trust fund, 1913, 623,5sU, con-
sisting mainly of United States notes. The
cash balance in the treasury, Including small
deposits in national bank depositaries, was
s101, ,756, ,099. Including the gold reserve OF
S1GO, 900, eco, the total was S2J7,756, ,099.
United States Treasurer Roberts felt even
then that the treasury was comfortably
| well off with $3.50, ,3s7, ,2o8 of gold. which in
cluded the S1OO OO0, 600 gold reserve
Comparing these figures with those of Oc-
tober 81, 1902 wonderful story is unfold
ed. The interest-bearing debt, despite the
issue of S19S 600 600 in war bonds, reduced
by bond purchases, almost wholly during
the term Of Secretary Gage, stands al only
$915,370 23O, an increase of 1884 ,010, but
in his cash account Uncle Sam is so much
better off than he was five years ago that
he could pay off this Increase easily and
then have a good many millions of ready
cash more than he has had when his bond
ed debt was SS47 1855, $50. His available cash
independent of the gold reserve
Therefore In respect TO cash on hand, the
treasury is about S93, ,00o, 900 better off than
five wears ago and only S71 ,264 .01o worse
off in respect to bonded Indebtedness. But
even this favorable showing in cash
balance does not really represent the finan-
cial achievements of the government. Tho
gold reserve five years ago stood at $780,
OOO,0O0. Since the Spanish war it has been
increased to S1J0O0OOO0 Five years ago,
sNhen the gold reserve was included with
the cash balance, the total was $207, ,7o6, ,099.
Including the gold reserve today. as is
done in the monthly debt statement. the
cash balance of the treasury is the huge
of 1886 421 SIS, increase in cash
holdings over five years ago Of about S145,-
000,000, more than twice enough TO offset
the increase in the bonded debt.
The debt bearing no interest October 81,
1897, was 1878, 623, $50. and on the corre-
spending date of this year 1896, ,3o2, $40, an
urimportant increase
Gold Now on Hand.
Treasurer Roberts gold holdings five
years ago are insignificant compared to the
mass of gold in the treasury. The
gold holdings now amount to sG06 29S 127,
divided follows: Gold reserve, $50, ,OOO,-
600; gold coin held trust funds for the
redemption of an equal amount of gold
certificates, 1867 O7S, ,569; gold coin and bull
lion in the general fund, subject to war
rants. $50, ,220, ,55S. In the yellow metal the
treasury has more than doubled its acqui-
sitions, and now holds next to the largest
amount of gold ever possessed by any
country in the world.
In silver the treasury is not as well off as
il was five years ago, for which it is doubt
less profoundly thankful. October 81, 1897.
the total amount of silver in the treasury
was s509, 35l ,943, consisting of dollars S392,-
517,014; subsidiary coin, S11,9S1, ,OIS; silver
bullion, S104 ,S53 .S51. The total silver Octo-
Der 81, 1902, s503 331 ,474, made up as
follows: Silver dollars, $467, ,442, 600; silver
dollars og 1890, ,239, 800; bullion of 1890,
$24 556, COL; silver dollars in the general
fund, $56S, ,664; bullion in the same fund,
81 615 202; fractional silver. $6.909, SOS. 1t is
noticed that the amount of silver bullion in
the treasury five years ago was over $780,
100000 while 1t is now little more than
$27, 900, 600.
The increase in the amount of money in
circulation Is also of interest The certifi-
Gates and notes in circulation five years ago
amounted to $3.50, ,456,9 ,953, while the total is
now $500 316 569 This increase is largely
in gold certificates.
National Bank Circulation.
National banks have increased their cir
culation by large amount in the course
of the five years and now have over $780,
OOOO in currency more than for the same
time five years ago. October 81, 1902. the
national banks had in circulation s3so,476,-
334 of notes, $33S 352, $40 being secured by
bonds and the remainder py ia"ih iiiohes'
For the same period in 1897 the total cir
culation was $3.50. 1S2 275, of which s22i'-
7425 $50 was secured by bonds and the re- .
mainder by lawful money. This gives fair
idea of the powerful growth Of national
banks, and their ability to expand their
circulation when there is demand for
money. 49,
The treasury has been so overloaded with
cash that during the last seven months 1t
has deposited with national banks many
millions of dollars, secured by government
bonds. October 81, 1902 the total amount
of bonds held as security for deposits OF
public money with national banks was
S149, PIG, $40, while for the same period hve
wears ago the total bonds on deposit for
the same purpose were s17.075,500. At that
time the treasury did not have great deal
of cash to place with the banks, ana con-
tented itself with holding on to what It
possessed There were neither purchases
of bonds nor deposits of government money
In material sums.