New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-07
LIE TREASrRY report.

In his annual report of the Treasury Depart
ment Secretary Shaw makes number of recon-
mendatiOns which are pretty sure TO receive the
cordial approval of the banking community and
of the business world in general For many
years there has been need in this country of
more elastic currency. It is suggested by
the Secretary that provision be made for an ad
ditional government guaranteed note circulation.
| equal TO 30 per cent of a banks bond secured
circulation, on new notes not to be secured by
! bonds but TO be subject to tax of , or per
cent IN the event of additional circulation of
this sort notes would be issued until interest
rates exceeded that percentage. In times Of
monetary stringency call money under such
provision would probably not advance TO pro-
hibitiye level While the Treasury Department
would be relieved as the Secretary says. of
most embarrassing responsibility. Secretary
Shaw further recommends that there should be
an act providing that the Panama bonds and all
future issues Of government bonds shall be made
available as security for note circulation subject
TO tax Of one-half of per cent Such an en-
actment would naturally tend to relieve the
money market at times when there happened to
be scarcity of approved government collateral
against new issues of national bank notes, and
this feature of the Secretarys report Will, we
think, be generally commended by bankers and
men of affairs
Secretary Shaw in his suggestions does not go
beyond the limit of conservative banking prin-
ciples, while he proposes many reforms which,
if adopted, will serve to increase the efficiency
of the national Treasury Department in promot
ing healthy financial conditions in this country
An act providing for the recoinage into subsd-
larry money of abraded and uncurrent silver
dollars in amounts not exceeding $5,O0O,000 a
revision of the customs administrative act. In
Guiding the licensing of customs brokers and at
tOrneys a change in the law relative to draw
backs so as to permit properly safeguarded sub
stitution similar to that thus allowed in France,
and the establishment of a savings bank for the
convenience of government officers in Washing
ton are among the interesting proposals which
the Secretary makes and which it is to be hoped
the present Congress will take into careful con-
sideration OF greater Importance, but more
likely to encounter strong opposition is his rec
Ommendation that law be enacted giving trust
companies of large capitalization the privilege
of Incorporating under federal law. with CORE
spending supervision. and that they should be re
quired to keep an ample reserve in proportion to
their deposits
1t will be noted with qualification that govern
ment receipts for the fiscal year ended June 80
show an increase as compared with the preced-
ing twelve months while in the same time expen-
ditures were less by more than S15.O00O00, Ieav-
ing an excess of expenditures over revenues of
about S23OO00OO 1t should be borne in mind
JIiI WnllP IN Jne last TWO years the OutgO mas
been largely in excess of the income the greater
part Of the excess payments has been on Pan
anna Canal account The general condition Of
the Treasury is such to inspire confidence
that in the current fiscal year results Will be
even more encouraging. especially as current re
ceipts are now running in excess of expenditures
the surplus. as ii may be called. so far in the
current month amounting to more than $1,000 |
Goo II is interesting to record the fact that the
interest bearing debt of the United States is only
1896. 15S940 an amount extremely small as com
pared with the interest bearing debts Of other
leading nations. The United States Treasury Is
strong 1t is prepared TO safeguard the interests
Of the country. and all indications point toward
expansion in fits resources which will directly
reflect the national growth and prosperity There |
is moreover. nothing in the report to encourage |
idea among spectators that the Secretary Of
the Treasury will help them out of any holes !
into which they may fall through their own fool
ish ndscretiOns.