The Brandon news. (Brandon, Miss.) 1892-1961, 1904-09-22
STATEMENT Is BAD
TANGLE IN THE GOVERNMENTS
FINANCIAL AFFAIRS.
National Banks Have Possession of
Surplus Funds-Deceptive Treasury
Statement Will Not Avail to Deceive
the People.

A~&AAy OAO AuuUTGQ aQQ
nIty millions, of which only fourteen
millions are really available. Expen-
dltures exceed receipts twenty mill
IONS during July, indicating large de-
nciency for fiscal year 19O4-5.
There Is no getting away from the
fact that the financial affairs OF the
government are not in good shape. in
spite OF the protestations of President
Roosevelt and Secretary Shaw that
everything Is lovely. Outside of the
trust funds the statement issued nv
the United States treasury July %.
1904, shows an available cash balance
Of sl4S,S86,472.08. OF that amount the
statement shows that $1O4,963, 775.13
Is deposited in the national banks and
R7O5,2S7.12 has been credited to the
accounts Of disbursing officers and
both OF these amounts cannot be
called available. The secretary of the
treasury could, of course, call on the
banks to repay the amount the gov
ernment has loaned them, but to do so
would SO inconvenience the banks and
80 disturb the money market that Sec
fetary Shaw is unlikely to make the
tall
In past years the New York banks
nave, during the fall months, always
Tad to provide for repaying to the
country banks in the South and West,
the money they have on deposit. This
money is needed by the country banks
10 move the crops" The New York
banks claim that they have to furnish
The money to move the crops" but
they are really only repaying the
country banks what they owe them.
When the demand from the country
banks is excessive, the New York
ranks have to call the loans they
have made on stock security. The
result is the "iurries" in the stock
market we often hear of, for the bor-
rcwers have to replace those loans at
higher rates of interest, or in case
they cannot reborrow, the stocks held
by the banks as security are sold.
II many such loans are closed out
and large amount of stocks are
forced to sale, the price of stocks de-
clines rapidly and a panic ensues.
Everyone then wants to sell and there
are but few buyers No Secretary OF
the Treasury would feel justified in
calling on the banks for the govern
ment money they have, at such a time,
for it would add to the panic. Thus
1t is seen that Secretary Shaw could
demand the one hundred, or over,
millions the banks hold, but it cannot
be called Immediately available.
Then there are other large amounts
included in this available cash bal.
ance" that are not available. In the
treasury of the Philippines there is
$7,316,937, and awaiting reimburse
ment for bonds and interest there is
$136, 503.38, making in all $12O,122,-
5O2.63 that must be deducted from
the available cash balance, which
would reduce that amount to only
S2S, 1853, 969.45. But then again there
are number of items that are figured
in the cash in the general fund that
are not available, as follows:
Silver bullion .:.I......... $ 2,213 ass. 81
l,SU $3.50
tractlonal currency ........... 1856
Minor coin NEUTRALITY-SUSPICIOUS.. 7245146
s14.744.S5s.47
Deducting that amount from the
above would leave but s14,O19,1O9.9
as available cash balance. And if the
amount of National bank notes which
are on hand for redemption is thrown
out as not available cash, Of which
$17,493,4 is included, there would
be a shortage of $3,475,373.
The Treasury has never paid out
National bank notes, but unless Secre-
tary Shaw calls upon the banks for
another installment of the money
loaned to them and upon which no in
terest is paid, he may have to resort
to such an expedient. There is an
other matter upon which constant mis-
statements are made in Republican
newspapers and by Republican speak
ers and that is the amount of gold in
the treasury. There is reserve fund
of $150,000,000, there is also gold coin
1922, 650,969, but against that amount
there is the same amount Of gold GER
ti6cates outstanding. There is only
$24,469,552 Of gold coin and bullion
now in the treasury in the general
fund and that is not available, for it
is included in the S28,763,S69 given
above, which has been shown as COW
cred by other demands upon the gen.
eral fund.
The management of the treasury is
giving great concern to the Repub-
lican leaders and it is with the great
est difficulty that the treasurer Of the
United States can meet the demands
that are daily made upon his re-
sources. Secretary Shaw has also
made himself laughing stock by the
statements he has made in his late
speeches on high prices and the tariff
and the Democratic managers are
hoping that he will be allowed to con-
tinue these and like utterances. The
large deficiency of the last fiscal year
Of over $4O,000,000 will probably be in
creased this year, for already up to
July % the excess Of expenditures
over receipts is $20,920,S2993.