Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1904-03-15
Financial Embarra.sment.

y ANh AAC BACSC1t SOISACSo was Va
gained the committees We're 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 10 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 were falling
off and the Secretary of the Treasury
had warned Congress there would be
no surplus, and perhaps a 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
1928. 157 OBS. 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
So. $50, 115, and $11 $50, 4T6 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 $40, 155,2lT remains as the
actual available cash. 1t has always
been considered necessary by former
Secretaries of the Treasury to keep
at least $50.000,000 actual balance to
meet the demands as they fall due
so that the present administration is
facing a 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.
ences it was determined that the ma
tional banks must repay 20 per cent
of the public money they have on de-
post and on which they are paying no
| interest. and so tide over this uncom-
Portable financial trouble until after
election. Secretary Shaw, it is stated,
! 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 au-
| thorized 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 $30000.O00 now to-
wards the $50,OOO0OO for the canal.
But if the banks repay $4,000, 900
and $4,000, 600 OF the actual cash in
| the treasury is added and used to pay
| for the canal, it will only leave a little
over $50, 10000 for current expenses.
Hence the necessity for reduced APP
| plOPA uliNA NhC ANtA " tAAN ASAiA
! ing off in revenues, for the Repub-
lican leaders feel they are financially
! skating on thin ice.
The national banks will soon recu-
perate from the 20 per cent call now
made on them, as the first issue of
bonds to provide money to build the
canal will probably be $100,000,000,
and this vast sum can be deposited
with the banks until gradually needed
! in Panama.
Those who imagine that the banks
will be called upon to repay, from time
to time, the public money they hold
will soon find that no such ordinary
business sagacity rules the manage
ment of the United States treasury.
There would be no graft for the banks
and no donation by the bankers to
the Republican campaign fund under
such common sense management. A
bond issue offers the double graft of
profit on the bonds and free cash for
the banks.