The Washington times., 1904-01-03
Nays HEAVY INROADS
ON TREASURY SURPLUS
The Expenditures Increased
Many Millions of Dollars.
CUSTOMS RECEIPTS DECLINE
Business Men More Conservative Than
in Iooz-LaTgest Stock of Gold
in Worlds History.

The expenditures of the United States
Government were seventeen million dol
lars more in the calendar year 1903 than
they were the year before. 1t is an
interesting fact that the whole of this
increase is chargeable to the Navy De-
partment. and is accounted for by the
building and arIaing Of new ships, the
employment of more men to man them,
and the construction of accessory build
ings.
II is fact that the Treasury is no
longer piling up a large surplus. Gov
eminent receipts exceeded expenditures
in the calendar year 1901 by S104,OO0,000,
and in 1902 by $72OO0OO0. Within the
year just closed, the excess of receipts
over expenditures was but SIS. 0OO. 600, or
S34. 100000 less than for the preceding
year.
Customs Receipts.
The surplus for the present fiscal year
is estimated by the Secretary OF the
Treasury at but $4,000, 900. A decline in
customs receipts and an increase in the
naval expenses accounts almost entirely
for this change in the condition Of the
Treasury officials to u growing conserv-
atism in business circles, which is re-
placing the confident buying in 1902 and
the early part of 1903
Some newspapers have misinterpreted
Secretary Shaw's report, claiming that
he predicts a deficit of $23,OOO,G0 for the
fiscal year to end June 90. 1905. After
estimating the probable revenues for
that period the Secretary said that there
would be a deficit Of $23,000OOO, if all
the appropriations were made that are
asked for by the several Government
departments. But the estimated expend-
lures are always carefully pared down
by the Congressional Appropriations
Committees and the indications are that
If there is any deficit at all for the fiscal
year 1908 il will be a small One-nOt
more than three or four million dollars.
Gold Holdings Increased.
During the calendar year Just ended
the gold held by the Treasury has been
increased by nearly s70.0O0,000 until the
amount is now about the largest stock
of the precious metal that has ever
been held by any government in the
history of the world. Gold certificates
outstanding have been increased in the
year by So, 100000. The available cash
balance has increased to $226. 900, co.,
which is S12, 900, 600 more than at the be-
ginning of the year.
The working balance" which ex-
cludes the money on deposit in national
banks and outstanding liabilities is
So. 200. 600. or 100000 less than at the
beginning of the year.
In order to relieve threatened string
ency of the currency in crop-moving
times and to prevent the accumulation
of money in the Treasury the depart
ment restored to the channels of trade
he
for the year which was SIS. 900, COO This
was done in the following three ways:
/. Deposits of Government money in
national banks were increased by about
SO, 600. coo; ?. In redeeming with antici-
pated interest the 5 per cent bonds
which fall due on the first Of next
month, about 100000 was paid out:
g. The department has refunded nearly
$l00 coo 900 of the and per cent bonds
into the . per cent consols, and cash
premiums paid out in connection with
this movement have amounted to about
81 00, 600
Bank Circulation
Another result Of the refunding plan
has been to increase the national bank
circulation in the year by $4,000. 900.
This was made possible by the in
creased number of per cent bonds
upon winch Ihat clrculauon IS mainly
based. caused by the refunding.
The number Of national banks in
creased in the year from 4 666 to Sis
and their loans and discounts show an
increase Of S122, OO0, 600. The latter figures
are offset by the facts that their capital
stock increased 81, 600, 900; their surplus
and profits increased S4S, 100000, and
their deposits increased $fS, 10000.