The San Francisco call., 1904-12-06
BOTH HOUSES Of CONGRESS FORMAL OPENED IN THE NATIONAL CAPITAL
BIG DEFICIT
IN NATIONS
FINANCES
Over Forty Millions,
Including Canal
Payment.

WASHINGTON, Dec. 5.-In his an
nual report for the fiscal year ending
June 80, 1904, submitted to Congress to-
day, Secretary Of the Treasury Shaw
states that the total receipts for that
period were 1854 PA, ,373 IA, and the ex-
penditures $725, ,9S4, 945 So. leaving q de-
felt of SAL. no, ,571 81 The expenditures
include the payment of $4,000, 900 for
the Panama canal. Compared with the
fiscal year 1903, the receipts decreased
over $l0.000000 and the expenditures In
creased over $S5 OO0, 900, due mostly to-
the Panama canal purchase, the in
crease in the navy and the discontinue
ance of war taxes. For the present
year the estimates provide for a deflcit
of 5000, 900, ana for the year following
surplus of $22,000,0 900.
Transactions in the interest bearing
public debt resulted in net reduction
in the principal of $19, 383,970 and de-
crease in the annual interest charge of
81, ,364, 1928 80
The total stock of money in the coun-
| try at the close of the fiscal year 1904
was $2,S03, 504, ,135, an increase of $118,
TS3,l4S over the preceding year. The
extraordinary amount of $42, 1913, 2S2 "a
. in foreign gold coin and bullion and
$29, 1853, $40 81 in domestic bullion was
deposited in the Mint at San Francisco
during the year and paid for by the To-
cal office or by telegraphic exchange on
New York.
The Secretary points out that steps
must soon be taken to provide bullion
for subsidiary coinage. He adds
In this connection, it may be pointed
out that no provision now exists for the
recoinage of standard silver dollars
which by natural wear have become
unfit for circulation. Many such are
now in the Treasury. They cannot be
recoined into dollars without loss, and
there is no authority to reimburse such
loss. AS the subsidiary cGins are of
lighter proportionate weight than the
standard silver dollars, these abraded
and uncurrent coins might be recoined
into subsidiary silver coin without
loss"
MORE PLIABLE RESERVE.
1t is recommended that the act provid-
that whenever and so long as the gold
coin held in the reserve fund in the
Treasury for the redemption of United
States notes and Treasury notes shall
fall and remain below 800 600 the au-
thority to issue gold certificates be sus-
pended" be changed by inserting the
words "and bullion" after gold coin" I"
The effect of the proposed amend
ment," says the Secretary, would be to
vest in the Secretary, of the Treasury
discretionary power as to the proper
ton of coin and bullion in the reserve,
and it would be his duty to keep at all
times sufficient coin in the fund to meet
! the demand"
The interest bearing debt on Novem-
Der 1, 1904. was 1896, 157 40.
| A reorganization of the customs dis
tricts on 4 more businesslike basis is
4 - - II
1t costs more to maintain some stations
| than is collected there in revenues.
Among these is Humboldt, Cal, where
| it costs Sc to collect 81.
| OF the revenue service the report
| states that several new vessels are re-
quired to replace an old, obsolete and
worn-out class, and at least one for a
new station at Honolulu, Hawaii.
There is no vessel of the revenue cut
| ter service available for service in Ha-
waiian waters. where one is needed.
The Bear and the Thetis are annually
dispatched by the service for the re-
| lief and protection of whaling and 9TH
er interests in the Bering Sea and Arc
tic Ocean. They are still in great need
of extensive repairs and it is recon-
mended that they be given the neces-
sary overhauling.
PAPER MONEY DEMAND.
Preparations are being made for the
erection of wireless telegraph towers
at convenient intervals along the sea-
coast. These towers, together with
those maintained by private corpora
tions. will afford opportunity for the
| advantageous use of wireless teleg-
raphy by the revenue cutter service.
| This service now has a coast guard of
modern vessels, and the Secretary rec
ommends that at least ten of these be
provided with approved wireless equip
| ment for communication with the coast
| stations.
All amounts which have become due
to the United States under the agree
ment dated February 1, 1899, for the
settlement of the Indebtedness Of the
Central Pacific Railroad Company
have been paid by the railroad COM
pany in full, including interest on all
| outstanding notes to August l, 1904.
| The principal of all notes held August
1, 1904 amounted to $26, 465, 722 OF, and
first mortgage bonds to the amount OF
$26, ,466, 900 are held as security for the
payment thereof
Our currency system" says the re-
port, though somewhat complicated,
has been proved safe and reliable un-
der every practical test. The exchange
of gold for all forms of money issued
or coined by the Government, on de-
mand, authorized by act of Congress
approved March IA, 1900, removes ev-
cry suggestion of public distrust or
doubt. The system has one recognized
weakness. however: it is nonelastic.
This criticism is sometimes answered
by the statement that national banks
possess the power to increase circula-
ton at will. Actual experience demon
! strates the insufficiency of this prerog-
ative to correct the recognized evil.'
All radical changes are opposed.
To meet a demand for paper money
of small denominations it is recon-
| mended that national banks be per-
mitted to issue a larger proportion OF
their authorized circulation in denomi-
nations Of five dollars, and that au-
thority be given to issue one-eighth OF
the aggregate volume of gold certif-
Gates in denominations of ten dollars.
The report refers to the growth OF
trust companies and says
Il suggest the propriety, therefore
of law giving trust companies OF
large capitalization in large cities the