The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-11-04
The Treasurer's Report.

The report Of United States Treasurer
Roberts for the fiscal year ending June
80 embodies a remarkable exhibit of finan-
DIAL strength on the part Of the govern
ment.
Some features of this report have been
published in advance, as the surplus OF
$91,2S7,376, Notwithstanding the bond pur-
chases of Secretary Gage previous to the
administration of his successor, Mr.. Shaw
Impressive features are the available cash
balance July 1, Of ss62.1S7,361 including
the gold reserve Of S150,0o0,oo0. Since
then the cash balance, exclusive Of the
gold reserve, which constituted half of the
balance together with the gold certifl-
Gates. has been reduced on Nov to $685.
Al, $40 on account of the measures taken
by Secretary Shaw for the relief of the
money market The treasurer states that
the ratio Of gold In the country to total
circulation has increased from 1852 to
4645 to the hundred and that, during the
fiscal year, the growth in circulation was
$74,0S2, $50, gold coin and gold certificates
forming the largest part.
While it is gratifying to read the big
figures of the governments available
cash and surplus, it is wise to reflect that
this country has been at great disad-
vantage through the withdrawal of SO
much money from circulation. The pur-
chase of bonds for the purpose of reduc-
ing the surplus has heretofore been cir
culation- contracting process. because the
ha Ike uyb solI frf be AMI
part with a considerable portion of the
basis of their note circulation when they
surrender them. as the notes secured by
the bonds sold are withdrawn from circu-
lation. Secretary Shaw has to some ex.
tent corrected this by his Interpretation o.
section 5153 of the United States revised
statutes as permitting the acceptance BY
the secretary of the treasury Of secur-
tiles other than government bonds agains
the deposit in the national banks Of in.
ternal revenue receipts, so that the bond.
surrendered by the nationals to the gov
eminent as security for the deposits, ar,
released, and can be used as the basi.
of new circulation.
i 1t is said that Secretary Shaw may rec
ommend in his annual report an amend
mont to the law as to government depos
Its with the nationals, making it Lawful
to deposit customs receipts with the bank
as we'll as internal revenue receipts, thu
putting more Of the money collected TO
taxation back into the channels of trade
The increase Of imports has, during tn
last few months been very noticeable an,
with the increase Of imports the revenu
d. of the government increases In Septen
Der there was an increase Of $1,000, 900 II
customs receipts over the receipts of tn
corresponding month last year, and it
estimated that about three-q quarters Of
million dollars a day were taken out O
New York by customs payments and with
drawn from circulation under the presen
system.
Mr. Shaw has been charged in som
quarters with being a crank" in finance
but he has introduced some very excellen
features in treasury business, notably tf1
acceptance of f1rst-cIass state and munich
pal bonds as security for the government
money deposited with the national bank.
substituting them for government bond
(which are needed, under ou. present sys
ITEM, as the basis Of new circulation, LIZ
the secretary deposit customs receipts E
"a portion Of them in the banks and ther
will be comfortable increase in none
for business needs at periods like cror
moving time when the demand is stronet
than usual.