Mexico Missouri message., 1904-08-25
STATEMENT Is BAD
TANGLE IN THE GOVERNS ENT's
FINANCIAL AFFAIRS.
National Banks Have Possession 81
Surplus Funds--DeeeptIvs Treasury
Statement win Not Avail to Deceive
the People.

beteAee VI nearly ono hundred ana
fifty millions, of which only fourteen
millions are really available. Bxpen-
ditures exceed receipts twenty mill
Ions during July, indicating large de-
nciency for fiscal year 1904-5.
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 by
the United States treasury July 20,
1904, shows an available cash balance
OF $l4S, sS6, 472.OS. OF that amount the
statement shows that $104, 96S, 77513
Is deposited In the national banks and
S7,705,29 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
eminent has loaned them, but to do so
would so Inconvenience the banks and
so disturb the money market that Sec
Rotary Shaw is unlikely to make the
call.
In past years the New York banka
have, during the fall months, always
had 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
to 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
hanks have to call the loans they
have made on stock security. The
result is the "Hurries' in the stock
market we often hear Of, for the Dor
Tcwers 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 q 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 time,
for IL would add to the panic Thus
II is seen that Secretary Shaw could
demand the one hundred, or over,
millions the banks hold, but 1t cannot
be called Immediately available.
| T.,
included in this available cash bal.
ance" that are not available. In the
treasury Of the Philippines there IL
T,3l6,937, and awaiting reimburse
ment for bonds and interest there is
S136,5OS.3s, making in all S120,122,.
502.63 that must be deducted from
the available cash balance, which
would reduce that amount to only
42s, 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 ............... 6 2,213 IS5. 81
Subsidiary silver coin .,...... 1886 7Ss 90
| Fractional currency ........... lis SO
Minor coin ..........,.......r.. T2l,5l4. GA
Sl4.744.s59 A
Deducting that amount from the
above would leave but S14,0l9, 109. 98
as available cash balance. And IL the
amount Of National bank notes which
are on hand for redemption is thrown
out as not available cash, Of which
i $17.4sS,4S2 is included, there would
be a shortage OF S3,475,373.
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
tereBt 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 q reserve fund
of $3.50 100000 there is also gold coin
$522,650, $50. but against that amount
there is the same amount OF gold GER
tificates outstanding. There Is only
S24, 469,652 OF gold coin and bullion
now In the treasury In the general
fund and that is not available, for Il
is included In the $2s, 1859 given
above which has been shown as COW
cred BY other demands upon the gen.
eFal fund, ~.
The management Of the treasury ia
giving great concern to the Repub.
lican leaders and It is with the great.
est difacuity that the treasurer OF the
United States can meet the demands
that arc daily made upon his re-
sources. Secretary Shaw has also
made himself q 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 win be allowed to con.
tinue these and like utterancea. The
largo dafcieucy az the last fiseaI va.ay