Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-11-12
THE PUBLIC DEPOSITS
SECRETARY SHAW NOT CONSID-
ERING WITHDRAWALS.
It is Expected That the Cash Balance
Will Grow-The Treasury Will Not
Assist Speculative Market.

The various suggestions that Secretary
Shaw may be compelled at any time to be-
gin to withdraw from depositaries of gov
eminent money some of the funds to the
credit Of the government are not considered
as in the least based on knowledge of the
Secretarys intentions. The best informa-
ton obtained at the Treasury Department
is that Secretary Shaw would not even con-
slider a withdrawal of public deposits from
the banks at this time unless there should
arise some great emergency not now fore
seen by anybody. The possibility that the
receipts may drop so far below expendi-
lures at any time as to further reduce the
cash balance In the treasury is thought to
be too remote for even speculation.
The Available Cash Balance.
Yesterdays statement shows that the
available cash balance of the treasury, in
Guiding deposits with national banks, is
$204, 227 800. To the credit of the United
States treasurer with national banks is the
sum of S142, 635 726, and to the credit of dis
bursting officers in the same banks $1,09S,-
1884, making total of S149, 734 $50 of gov
eminent money in possession of the banks.
This amount deducted from the total avail
able cash balance leaves cash balance IN
the treasury proper of S54, 493,S39 consld-
cred to be as low an amount as the Treas
ury Department is willing to do business on.
From an entirely treasury STANDPOINT, now
ever the amount of money with national
banks to the credit of disburslng omcers is
considered as a part of the working cash
balance of the treasury, and 1t is custom
airy to deduct other items so as to arrive at
the cash balance in the treasury. For IN
stance, there are subsidiary silver coin,
minor coin and silver bullion in the general
fund of the treasury to total of about
SO, 9O6O12. This silver is useless should 1t
be rendered in large amounts for the pay
of 1ohf and "a NOT
as gold coin, gold certificates, national
bank notes and other forms of money. The
method, therefore. Is to deduct this total
from the available cash balance. El1m1nat-
ing this the actual cash balance in the
treasury proper would be just little over
$4,000, 600 This is a small working bal
ance.
Balance Expected to Grow.
But this sum is not small as to cause
any alarm. There Is no likelihood that
there will be a material deficiency in the
months business either this month or next,
and the consequence will be that the cash
balance in the treasury will grow, espe-
cially in view of the fact that no more de-
posts are to be made with national banks
for the present, and that the money from
Internal revenue receipts will be turned into
the treasury instead of being diverted to
banks. Even should the cash balance in the
treasury proper dwindle still lower by any
reason Secretary Shaw would hesitate to
withdraw money from the banks. There
will be slow process Of withdrawal any
how by reason of the liquidation and con-
solidaton of banks, without the Secretary
having to call in the funds. The action of
withdrawal would precipitate trouble in the
money market and might bring about seri-
Gus danger.
Treasury and other officials are inclined to
believe that there Is no real need of money
in New York for legitimate business, and
that the nervousness evident in the stock
market in the last few days is attributable
to over speculation. The treasury will not
extend any assistance to a speculative mar
ket, even if it had the money. The fact that
il is poorly equipped to do anything more
to help the financial market is in itself ca
pable of producing nervousness among those
1rdulging in speculation and who are look
ing forward to a tightening of rates for
money.