Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-03-02

the currency bill introduced, yesterday.
by Representative Fowler, chairman If
the committee. In reporting the bin
TIE committee says in part:
In addition to providing for the is
sue and circulation of national bank
notes the object of this measure is TO
Immediately put back into circulation
any money the government may col
/ lect through it's customs receipts as
we'll as through its collections from in
tarnal revenue.
The available cash balance now in
the treasury is 1922, 46S,S1S. OF this
amount there is now in national bank
repositories $780, 424, leaving IL net
balance in the treasury of 81. 994, asa.
The amount OF money now in the treas
ury available for all purposes is ST.
394. l54. from which amount if we de-
|. duct 100000 900 as a necessary working
balance for the treasury we shall have
only s2l 1874. 4o4 to meet the demand; on
the treasury growing out of tic Pana-
ma transaction, which will call for
100000. 1t is therefore evident that
either the government must al once
cali for S2S.000,000 from the banks or
appropriate $4,000, 900 from the amount
now in the treasury, leaving working
BIZ lance of only about $22 900, which
must be supplemented by collections
from the various resources until the
amount in the treasury shall be
brought up to $50,000,000 before an ap-
preparation can be made for any other
purpose. without infringing upon what
has generally been considered proper
working balance. VIZ: $50,000,0 900. X Is
therefore evident that the government
will not have any additional money 10
deposit with national banks for the
next six or eight months, if, indeed, il
shall have collected as much as $50, 000,-
900 within that time.
THE amount now deposited with ma
tional banks is Sl43,11 ,59S, for which
the government holds government
bonds as security, amounting to about
$l2J,O00.000, and about 1929. 100000 of
otnei' bonds. The measure now submit
ted provides that the government may
deposit any public money including
this $i43. 100000 with national banks
cent. of the paid un and unimpaired
capital of any national bank without
exacting government bonds or other,
lien upon the assets of such bank and
shall receive interest OH such deposits
ut the rate OF per cent. per annum.
PAYABLE semi-annually on the first days
of January and July. 1t will be seen
that the effect of this provision will be,
within the next few months, say ser
tainly within year, to release the to-
tai amount of bonds now deposited to
secure government deposits, viz: One
hundred and twenty-five millions Of
government bonds and $4,000, 600 of state
and other Bonds now held by the treas
,iry in addition thereto as security fo>
such DEPOSITS The bonds so released
may then be used by the banks for fur
Their inc1 easing their bond secured cir
culation which will undoubtedly be
much needed during the coming fall
months.
The government should cease to he
n disturbing factor in our business az
fairs 1t was this thought that movec
our committee to fix the rate of intc"-
est rot allowing il to become varia-
he quantity to be increased or de-
creased at the pleasure of the secreta-
~. a circumstance that must necessa-
rily result in intense rivalry, bitter crit
icism and constantly subject the treas
ury to endless scandal
Mr.. Fowler introduced a resolution,
today. providing for a rule for con-
silera ton of the bill reported. today.
The resolution was referred to the
committee on rules.