The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-03-31
The DAApsien About Locking Up
Money In the Treasury.

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The DAApsien, About Locking Up
Money In the Treasury.
We know Of no more curious phenome-
non than tbe persistence Of the idea in the
minds bf n6hy People who ought to know
better that the present so-called money
strins$hcyin this country is due to the
locking up Of money in the Treasury.
ThiaS the cause TO which the difficulty
ID commonly referred in newspaper col
umns, tn ordinary conversation, and
even IN the editorial reviews Of the situa-
ton in leading financial journals. The
StatiS and the Economist, the two most
prominent financial publications in Great
Britain, refer to 1t as one Of the chief
factors productive OF our present trouble.
The London Times, which had been in
clined to agree with this diagnosis, now
apparently sees the matter in another
LIGHT; but even so well-informed a journal
q our own Financial Chronicle. speaking
OF tho strain on the money market.
says that the whole outcome is simply
another instance Of the harsh working Of
that old maelstrom, the Sub-Treasury,
sockinx in and draining the banks Of
their cash and commerce of its needed
tools
1t 10 true that owing to the operation
OF the customs and revenue laws q sur
plus has accumulated and is accumu-
latins in the Treasury OF the United States
and that to . certain extent this surplus
consists OF money withdrawn from public
circulation. Obviously, the harm that
can be done by the Sub-Treasury
maelstron at its very worst is repre-
sented by the amount Of money that the
Treasury actually locks up. The damage
done by the locking-up process can be no
greater, In any event, than that caused by
the witAdrswal OF this bum. II current
explanations are correct, this sum must
Be something prodigious. What are the
facial
On last Saturday. the total amount Of
money held by the Government Of the
United States, apart from the sums held
a. tisey must be, in the Division
Of Redemption in the Treasury against
outstanding gold and silver certificates
and Treasury notes, was S3l4, 93S, 3o7 90.
Current liabilities Of the Government
were 81 oes, o18es. leaving an available
cash balance OF S223,sAl, 32l.ss. OF this
balanoe. $3.50, 1877 ,5es. As rested in national
bank d6p1stories throughout the Union,
whese NWas 81 course, entirely avail
abb for purposes of circulation. 80 that
the ~ usnainiAg Ia the Treasury vaults
proper was only s7s.O7s, es2.43. OF this
sum, Again, so ,oOo, 900 was in shape un-
available, forh circulation, subsidiary
silver. coin, silver bullion, &c, whose
ouaAlity. in the Treasury under all cir
cuus4succs Is nearly constant. Prao-
ticaIly, therefore. only little over $685.
ooo, coo vamsins as a working balance in
the .physical possession Of the Govern
ment,r Ths SUM. amounting to less than
ouef6yANA of the total sum of money
in circulation IN this country, represents
all that the Sub-Treasury maelstrom
has been able to absorb. The Govern
ment's excess Of receipts over expendi-
= tures for the fiscal year-that is to say
the total Treasury drain on all accounts
that has taken place amounts to Ss?,'
600 Isl 90. A year ago at this date the
Oovenrneut's excess OF receipts over
expenditures amounted to $50 cs&. SOS. o6
80 that during tho present fiscal veal
there has actually been a mitigation oi
the Treasury drain rather than an in.
crease Of il.
A payment OF So, Oo0, 900 must be made
by tho Government on account Of the
Panama Canal matter on or about July 1
II ID believed that the Secretary OF th<
Treasury will take all OF this money from
the vaults of the Treasury proper. II
he does 80 II win bring the actual working
balance OF the Government down to lea
than $50 900, the lowest amount ol
cash proportionate to the population
ever known. II is, therefore, clearly the
duty Of the Secretary OF the Treasury
IL he meditates taking all Of the money
e,r the Panama Canal payment out OF the
Nsasury vaults in this manner odo al
hat he can IN the meantime to enlarge
tho sum OF money now in these vaults
rather than TO diminish il.
II In time now to stop talking abou,
the Treasury hoard and the locking W
Of money in the Treasury. No good
can BE- accomplished on occasions like
the prsssntsby astribuing unpleasan,
results ~hih are felt by everybody u