The Hocking sentinel. [volume] (Logan, Ohio) 1871-1906, 1904-03-10
Financial Embarra.smeut.

When the present Congress was or
ganized the committees were appointed
with an eye to economy. At least so
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
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 COM
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
S225, 151, ,O3S. But the greater part of
this amount is not in the treasury, for
the national banks hold $162, 81 $50.
There is also in the Philippine treasury
S5,7S0.115. and S11, ,S50.476 is subsidiary
silver, which can only be used to sup
ply the banks for small change. De-
Quoting these three non-ayailable
amounts from the sum stated as the
available cash balance, it will be found
that only $45,155,2 remains as the
actual available cash. 1t has always
been considered necessary by former
Secretaries of the Treasury to keep
at least $5O.OOO.OOO actual balance to
meet the demands as they fall due.
so that the present administration is
facing dilemma that is causing Pres
ident and Cabinet considerable uneasi-
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
uonal election would not jibe with the
daily boast that the treasury is over
flowing with cash and that government
and people were never so prosperous.
After many solemn cabinet confer
ences it was determined that the ma
tional banks must repay 20 per cent
of the public money they have on de-
posit and on which they are paying no
interest, and so TIDE over this uncom-
Portable financial trouble until after
olocfiop Cooroforv Chou II 20 cfoto<1
plainly told the President that the
national banks would not disgorge
without some promise Of future aid
from the treasury when the usual
money pinch comes at the end of the |
year. 1t is said he was doubtless ari-
to assure Wall street that |
bonds will be issued at the earliest |
possible moment and the proceeds left |
on deposit with the favored banks, if |
they would repay S3O.OOO.OOO now to-
wards the $50,OOO,OOO for the canal. |
But If the banks repay $1,000, 600 |
and S2O,0O0,OO0 of the actual cash in |
the treasury is added and used to pay
for the canal. it will only leave little
SNSi S~c,OOV.OVO AOl CuIACAI cApcuScS.
Hence the necessity for reduced ap- |
tons and the fear of the fall
ng off in revenues. for the Repub-
lean leaders feel they are financially
kating on thin ice.
The national banks will soon recu-
,erate from the 20 per cent call now
made on them. as the first issue of
,onds to provide money to build the
anal will probably be 100000, 900,
md this vast sum can be deposited
With the banks until gradually needed
n Panama.
Those who imagine that the banks
will be called upon to repay. from time
o time, the public money they hold
will soon find that no such ordinary
BUSINESS sagacity rules the manage
nent of the United States treasury.
There would be no graft for the banks
nd no donation by the bankers to
he Republican campaign fund under
uch common sense management. A
'ond issue offers the double graft Of
rofit on the bonds and free cash for
he banks.