Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-12-08
SHAW MAKES REPORT
Secretary of Treasury Renews
Recommendation For More
Elastic Currency
IN BANK CIRCULATION
During the Year Increase Has Been 81
Millions in Round Numbers-Process
Can Not Be Continued Unless More
Bonds Are Provided or Other Plan
Devised.

Bonds Are Provided or Other Plan
Devised.
Washington Dec. S.-The annual re-
port of the secretary of the treasury
was submitted to congress today. 1t
shows the revenues of the government
from all sources for the fiscal year
ending June so, 1903, to be s694,621,- :
l17.64. The expenditures were $780,
323,450.2s. showing surplus of $54.-
2s7.S67.S6.
the receipts for 1903 increased $1o,-
a94,S3717. There was an Increase of
s47,2S4545.3S in expenditures.
The most noticeable features in the
condition of the treasury are the IN
creased available cash balance and the
Increased holdings of gold. Since 1890
The available cash balance, including
The reserve. has more than doubled,
rising from $179,25s.s37.is to s3ss.6s6.- :
l14.23. The cash in the general fund
increased during the year by $30.103.-
Si69.67 and the liabilities increased $3,-
sos. 1860. Thus. the available cash
balance at the end of 1903 exceeded
That of 1902 by s26,49s.753.07
In his report Secretary Shaw says:
1t Is a notable fact that the banks
organized since the financial legisla-
,ion OF March IA. 1900, constitute nearly
one-fourth of the number organized
during the entire existence of the ma
tional banking system
The net increase for the year ended
Oct. 81. 1903. In number OF banks was
46S, and In amount OF capital stock.
S52.931, 400. The number OF associations
In active operation at the close OF the
current year was 5,147. with authorized
capital stock Of $766,387. .0s5. During the
year, 12 national banks Exclusive of
cne association placed In solvent con-
dition and permitted to resume busi-
ress). with capital OF s3.4s0, 900, failed
and were placed In charge of receivers,
and 70, with capital OF $50, ,720. coo. were
placed in voluntary liquidation by ac-
ton of the stockholders.
Our currency system has been sub
jected during the year to some very
severe tests. Unprecedented prosperi-
ty encouraged the natural optimism OF
our people to such an extent that prop
erty Of all kinds found ready and eager
buyers at figures phenomenally high.
A condition. therefore, existed which
OK necessity could not last. Within a
year the market value of stocks and
bonds. the proper and legitimate hold
ings OF the people. has deprecated in
ain amount estimated for in excess of
the cost of four years devastating civil
war. Yet notwithstanding this enor-
NOUS and inconceivable shrinkage,
II has not afforded in noticeable degree
other classes OF property. Banking
institutions have exhibited no sugges-
tlon of weakness. few business failures
have occurred, there has been but
slight curtailment in commercial enter
prises, very little apparent hardship.
and absolutely no fear OF any deprecia-
tion In any form of currency. To all
a ppearances the crisis is passed. There
now exists scant reason for apprehen-
sion-certainly no occasion for alarm.
BY the provisions Of very wise
act OF congress approved March IA.
1900. 1t was made the duty of the Sec
retary of the treasury to redeem Unit
ed States notes and treasury notes in
gold on demand, and to maintain all
forms OF money issued or coined by the
government at a parity of value. Evil
IDENTIFY rhe people have understood, as
they are justified in doing, that this
G a n fsa hariyao he ~
silver and silver certificates in gold
whenever necessary for the mainten-
aAce of parity. Nothing short OF this
assurance would have carried us thru
tine period to which have referred.
"One weii-recogntzed weakness,
however, has been strongly empha-
si9ed-our currency system Is nonelas-
tic. 1t does not respond to the vary
ing needs of seasons, or OF localities
or of changing conditions Of business.
This admitted defect should be rem
edied. But in remedylng 1t no measure
Should be considered that will in any
wise weaken that which Is now stable,
and no element should be injected that
will cause distrust or doubt Forum
ately, at the present time, no recipient
oil our several forms of money stops
to examine its character. 1t is all
knpwn TO be as good as gold. for the
credit of the government Is pledged to
maintain it's parity with gold. No act
should be passed authorizing the issu-
ance of anything less safe and Sc
cure.
National Bank Circulation.
During the fiscal year ended June
30 1903, national bank circulation in
in round numbers, fifty-seven
only twelve millions of which
was due to new organizations. Mani
testify this rate of increase cannot be
continued unless additional United
States bonds are provided, or some
other plan is devised.
In my last annual report called
attention to the fact that the act OF
June 28, 1902, which authorized the
secretary of the treasury to borrow 1S0
millions for the construction of the
Isthmian canal, does not per-
NIT the use of these bonds as security
for national bank circulation, at a less
rate of taxation than ] per cent per
arlnum. I repeat my recommendation
then made that these proposed bonds
he- made available as the basis of cir
,ulation on the same terms as the con-
soils authorized by act Of March IA.
1900. -.t...l. ~.