Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1904-03-16
1,innncinl Embnrrn.sment.

ganized the committees were appointed
with an eye to economy. At least 80
the leaders of the Republican party
said, and it really seemed that they
were going to try and keep down the
appropriations. 1t was thought to be
a good political card to play, to SO cut
down the expenses Of the government
as to appear to do so, that the organs
and spellbinders might enlarge on this
unusual streak of economy in the conf
ing campaign. There was another rea-
son for reducing appropriations that
could not be avoided, namely, the re-
ceipts of the government We're falling
off and the Secretary of the Treasury
had warned Congress there would be
no surplus, and perhaps deficiency,
during the next two fiscal years. unless
Congress was very economical.
The statement OF the conditions of
the United States treasury on Feb. "a
shows an available cash balance Of
1929, 15T,03S But the greater part of
this amount is not i'll the treasury, for
the national banks hold $162,371, 150
There is also in the Philippine treasury
,115. and $11, S5O,476 is subsidiary
silver, which can only be used to sup
ply the banks for small change. De-
Quoting these three non-available
amounts from the sum stated as the
available cash balance, it will be found
that only $40, 155,297 remains as the
actual available. cash. 1t has always
been considered necessary by former
Secretaries OF the Treasury to keep
ut least $50,000,000 actual balance to
meet the demands us they fall due,
so that the present administration is
facing dilemma that is causing Pres
ident and Cabinet considerable uncasi-
ness. To add to their financial trou-
bles, it is necessary to provide fifty
millions to pay for the Panama canal
The next step will be to issue bonds
But to issue bonds just before the ma,
tional election would not jibe with the
daily boast that the treasury is over
flowing with cash and that government
and people We're never so prosperous
After many solemn cabinet confer
ences it was determined that the nj
tional banks must repay 90 per cent
of the public money they save on de
post and OH which they are paying ne
interest, and so tue over this uncom
Portable financial trouble until after
election. Secretary Shaw, it is stated
plainly told the President that the
national banks would not disgorgt
without some promise Of future ait
from the treasury when the usua
money pinch comes at the end of til,
year. 1t is said he was doubtless au
thorized to assure Wall street tina
bonds will be issued at the earlies
possible moment and the proceeds lief
on deposit with the favored banks, i
they would repay S30,oo0,O00 now to
wards the S500o0,0O0s for the canal
But If the banks repay $So.Ooy,oo
and S2O,O00,000 of the actual cash II
the treasury is added and used to pa.
for the canal, it will only leave littl
over $25, 100000 for current expenses.
Hence the necessity for reduced ap
preparations and the fear of the fall
ing vi III lCNChuSS, lcI luG lNSpuD
lican leaders feel they are financial.
/, skating on thin ice.
The national banks will soon recu
perate from the 20 per cent call nov
made on them, as the first issue D
bonds to provide money to build TIL
; canal will probably be $100.000,000
/ and this vast sum can be depos,tet
with the banks unit! gradually neede'
J in Panama.
Those who imagine that tho bank
2 will be called upon to repay, from tim
!, to time, the public money they hol
9 will soon find that no such ordinar
business sagacity rules the manage
t ment of the United States treasury
= There would be no graft for the bank
and no donation by the bankers t
the Republican campaign fund unde
such common sense management
bond issue offers the double graft Q
profit on the bonds and free cash 70
j the banks.