The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-07-01
Treasury Operations.

treasury operations.
The ability Of the American people to
continue rolling UP SURPRISES Of for
midable character thru the process 4 Of
taxation, Is again shown In the report
Tor the fiscal year published to-day.
It is true the surplus Of s52.710,s3s is
considerably less than that reported a
year ago. but it is about $1,000, 900 more
than was estimated, while the surplus at
the close of the previous fiscal year APP
preached $10o,00o.000. The surplus to-
day, s5271o,ss6, will pay the 100000
agreed upon for the canal franchise Of
the Panama Canal company and the $l0-
900, 600 to the United States of Colombia
4or right of way across the isthnus, pro-
yided Il! 4 Colombian congress accedes to
the teri of the Hay Herran treaty. No
ticeabie are the treasury's statements OF
$231,545, OH cash in the treasury June 80,
an increase over the amount year ago
of nearly $2O,ooo,o0o, and the amount Of
gold on that date was 1881, 500. SsS-anain-
crease Of 71,439,59s over the amount re-
ported a year ago. Noticeable, also, Is
the controllers statement that the ma
$40, 650-an increase of about s56 900, 900
during the fiscal year. OF the 5S7 new
national banks organized during the year,
S29 have each a capital of $4,000. These
are located in the smaller towns, and the
number organized shows the acceptable
character of the financial legislation OF
19OO,' which promoted the extension of
banking facilities and reduction of inter-
est and discount rates over a large area.
The expansion Of the national bank note
currency fails to meet the requirements
Of the seasons, notably the crop moving
season, and does not keep up with the
national growth in commerce and in pop
ulation.' The amount Of circulation ; Is
nosv s54, 93s,616 more than it was in 1882
when it, was ss5s, 742,o34, or less than
$3,000,0 900 a year increase. Recognizing
the fact that business checks perform a
very large part in daily business transact
lions, this Is obviously too small an
amount of bank currency increase It is
noticeable that there is an element Of
our statesmen who, like those who have
an attack Of vertigo whenever anything
Is said about tariff revision for the pur
pose Of getting the tariff down to the
genuine protective basis, apparently have
severe attacks of the ague whenever there
is anything said about legislating into ex-
istence a currency which will expand as
q direct effect Of a real business demand.
as in the crop moving season, and con-
tract when the reason for expansion is
removed, so leaving the great central
fet,,
Every year. regularly-and 1t will be the
case this year, as heretofore-there is
G. demand for the transfer Of money from
the financial centers to assist the move
nnent of crops in the interior. and the cash
reserves Of eastern banks are pulled down
for use in the west and south, and
then the federal treasury Is appealed to
to furnish relief by purchasing bonds and
depositng surplus government funds in
the national banks. This was done last
year, when the depression reached a point
where, after the secretary Of the treasury
had bought government bonds to a con-
siderable extent and loaned the national
banks treasury funds on state and mu-
nicipal bonds for security, the leading
bankers Of New England had to hustle
together, and make up a fund of fifty
millions as an emergency fund to allay
public enxiety over the situation. In that
casa the irrational rush to promote indus.
trial enterprises, some of them for merely
speculative purposes. brought about most
of the strtngency and interfered with the
supplying of legitimate business demands
In England and Germany the Bank OF
England and the Reischsbank. In time of
stringency or panic, may expand above
the statutory limit during the period OF
demand for money, under strict require
ments as to discount rates and interest
In Germany the issues above the appor-
tionment are taxed S per cent and are
Withdrawn when not needed. It is evil
dent that our financial experts may with
profit take some lessons in banking and
currency reform from the old world.
AS means of protection to the wheat
fields along its line the Columbia River
& Northern railroad which began it's train
service in the first part Of June, has be-
4 gun to substitute oil-burn1ng locomotives
for coal-burners. It seems that the grain
fields In the Klickitat valley become very
dry and infiammable during the summer
months, and even before the road was
built it was determined to use oil in order
to avoid the danger OF fire from cinders
and sparks. The. company also finds Oil
more economical fuel than coal, If the
cost OF the two fuels were equal and their
efficiency about the same It would be a
I boon to the whole country II OIL could be
made the universal fuel Of locomotives.
Many prairie and forest fires are started
by sparks from ccaf -burning locomotives,
4 and the dense black smoke they pour out
is no small nuisance IN cities and villages
while 1t often takes away a large part
q the pleasure Of travel. BY the way.