Bisbee daily review., 1904-01-29

Borrowed Money So That Uncle Sam Bonds Will Have to Be Issued to Raise the Funds.
 The astounding revelations of Sccre- tary shay in his annual report pre- sent the financial situation of the country in a more unfortunate condi- ton than the most dolorous pessimist could have pictured 1t. He informs the president. the congress and the voters that the enormous and inconceivable shrinkage" in securities that are dealt in on the Stock Exchange and else where has caused loss to the people estimated far in excess Of the cost of four years devastating civil war" But Secretary Shaw rises to the occasion. and. notwithstanding the losses 10 the clares. There now exists scant reason for rehension-certainly no occa- sion for alarm" He acknowledges there has been a slight curtailment in
  pearances the crisis is passed
 Secretary Shaw is q regular Mark Tapley. He looks at the disastrous condition that he so vividly describes as one that could be infinitely worse and that ito all appearances the crisis is passed" This comforting assur- ance from the highest official authori- ty on financial affairs is somewhat qualified by his estimates for the two coming fiscal years of the receipts and expenditures of the government dur ing that period. For the present fiscal year the estimate he gives shows surplus of S1t.O00,000, but for 190i-0o there will be q deficit of S23, ,0o2. .146-1I. Such deficit would necessitate one of two important happenings for the taxpayers The present congress will have to either reduce the scale of ap- propriations or devise by law means for raising more money. There is of course another way to escape the dilem- ma by the secretary of the treasury calling upon the national banks 10 re- turn what is needed from the S15S.- 614, ,751 S7 loaned to them and upon which enormous sum they pay no in terest, as the extraordinary payment for the Panama canal to the French company and the new republic of Pan anna and further disbursements for the work of digging the canal will require either the fund deposited with the na- tional banks to be drawn on or bonds will have to be issued to meet the ex penditures. To withdraw from the na- tional banks at this time such a large amount would compel them 10 reduce their loans, and that would in all prob ability result in another upheaval in the stock market and might precipi- tate a panic. The financial condition in Wall street is none too sound even with the extraordinary aid rendered by loaning the banks all the available re- sources of the government.
 The report of the cash in the United States treasury in the statement issued Dec. , gives the available cash bal ance of S223. 3.454.O13. But. although Secretary Shaw calls that large sur plus available. when the items that compose it are examined it is found that it melts into but $43, 1o1 .690 of free cash that can be used 10 pay for the canal
 This will be seen by the following fig ures taken from the treasury state ment:
 Leaned to national banks. ,....... .s1ss. .G1f 757 To credit of disbursing officers
 lff Inf q .ft. In treasury of Philippine Islands 4.0i3.53s Awaiting reimbursement ......... aS.O32 Subsidy silver and minor coin-. s.i95,&I
 + that amount is deducted from what Secretary Shaw calls the avail able cash balance it leaves but S43,- 10f, ,G90.
 IL is admitted the money loaned to the national banks is not available, the money to the credit of the disbursing officers in this country and the Philip pines is virtually already used, and the subsidiary silver and minor coins are only useful when especially called for.
 l. will be seen, therefore, that there Is not sufficient cash in the treasury to pay for the Panama canal if the new treaty with Panama is ratified hy the senate. No wonder even the optimistic secretary of the treasury could only say there is "scant reason for appre- hension."
 I: will soon be up to the administra- ton to declare its policy by either call ing upon the national banke te disgorge or to issue more bonds.
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