The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-11-05
LOCKING UP GOLD
IN THE TREASURY
Where itAWails Another Wall
Street Wall.
THE TREASURER'S REPORT
He Says The Magnitude Of the Available Cash
Balance and the Unprecedented HOLD
ings Of Gross are the Striking
eatures.
DIV the Associated Press. J


Washington, ID. c.. Nov 3.-Ellis H.
Roberts, Treasurer of the United States,
in opening his annual report, says that
the magnitude of the available cash bal
ance and the unprecedented holdings of
gross gold, are the striking features of
the condition of the Treasury at the
close of the fiscal year 1902 The avail
able cash balance in the Treasury July
]. 1902, was the largest net balance in
our history. 1T amounted 10 $685., 1877 ,36l
The gold reserve is counted in as it is
available for the redemption of legal ten
der notes. Nearly one-half of the avail
able cash balance July 1, was in gold, coin
and certificates, S103, S01, 290 over and
above the gold reserve of $3.50, 200, OOO
and by October 1st it became $136, 124, IL.
AS a measure of the financial strength of
the government, the report says, the fact
deserves mention. BY October l, 1902,
the available cash balance, exclusive of
the reserve. was 1921. 1858, 1894; and owing
10 the large measures for the relief OF
the money market ii was reduced by No
vember l TO $206, 421 $40. OF this sum
S1i6.SS5,0l2 was in national banks
To the general stock of money in the
country, an addition of $50, 19S,sS1 was
made during the fiscal year. OF this SCI,
955,527 was in gold coin and bullion. There
was also an increase of $f9,795, 259 in
standard dollars. and of $7.360,991 in sub
sidiary silver. United States notes re-
manned by the law unchanged. Treasury
notes fell off SIT 1888 900. National bank
notes received an increment of $2,S51, $50.
The gold coin and bullion, October l.
exceeded all other kinds of money, eX
GLIDING national bank notes by 5000 2GS
433 IN five years the ratio of gold in
the country to total circulation, has run
up from 1852 to 1915 to the hundred.
The growth in the volume of money in
circulation during the year was $74.OS,-
ts9, carrying the per capita fKOm 27.9S
TO 2S.4S
The element of gold coin and gold cer-
tifcates was the largest part, and the
increase reached SCI 500, ia and advanced
from 1870 per cent of the total to Ia
per cent. In silver of all denominations,
including certificates, there was an in
crease of $25, 22G, 146, of which $6.486,014
was in Subsidiary coin. The reduction in
Treasury notes of ST., 677 500 in due to
tnetF@withdrawal
The advance in circulation in the vol
ume of gold, including certificates, with
in twelve years by the large sum of $685.
703, 5ls, is the measure of the greater
strength of our circulation. The addi-
tion during the past fiscal year was $751;,
9G6,174 The increase in the future can
hardly be less than $4,000 900 to $50, 000,-
eco year. The mines, the report says.
are thus confirming the gold standard
steadily and invincibly. and it adds
For the immediate present, and doubt
less for a few years at least, the in
flow of gold will be in such large meas
ire as to lift the volume of currency to
the highest level of all needs of bust
ness Our currency keeps more than
equal pace with the population. On June
27 the gold certificates outstanding, for
the first time exceeded in volume the
United States notes, and were $347, 179 ,0S9
BY November 1, they were 1857 .07S, $50.
1.-The gold IN the Treasury keeps in ac
tive circulation as currency the certifi-
Gates issued against it, and moreover,
S3iG,6S ,016 in United States notes, and
$50 900 900 in Treasury notes, or over
$40 ,000, 900 more than its own value. The
question may we'll be considered whether
the United States notes may not properly
be turned by Congress into gold certifi
Gates. They have much that quality al
ready, and this change could gradually
be made as the supply of the yellow
metal takes on greater proportions.
1.-The demands of the people for notes
of small denominations have surprised
the closest students of the currency. In
1890. there were 81 ,065, $50 pieces of gov
crnment paper issued, of the average
value of 1851 In 1902 the issue was
l16. 697. 374 AMI the average value of $4.
The facilities for production have been
often increased and now seem to be
sufficient for present requirements.
"The act of March IA, 1900, makes it
the duty OF the Secretary of the Treas
ury to maintain the parity of value of all
forms of money issued or coined by the
United States with gold standard defined
and fixed by that law. This parity has
been and IS now easily maintained. and
all kinds of government money are eX-
changeable with each other,
The ;ndow of gold, permitting the free
issue of goll certificates of $50 and up
wards. is the key TO this maintenance of
rarity ana intercnangeabilty of all kinds
of government money. On the other
hand. small denominations. including sill
yer coin, are constantly in demand for
the myriad transactions of retail trade
and the current uses of rural communi-
ties as we'll as for pay-rolls in furnaces
and factories and harvest fields. The
Treasury in recent years, continues the
report. has heard much more clamor for