The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1905-12-06

CURRENCY
SAYS SHAW

annual report OF Secretary OF the
Treasury Leslie NJ Shaw was sub
mitted to Congress today.
Speaking of the financial eondi-
ton of the treasury, Mr.. Shaw
says:
'The ordinary revenues for 1908.
as compared with 1904, show an m
crease of 3,642, 935.45, while the
expenditures were less by 49, 23y-
4o7. SO. The net result for the
fiscal year was an excess OF expendl-
lures over revenues of $23,0o4,-
22s.60.
f'For the past two years the ex-
penditures of the Government have
been in excess of the revenues to the
aggregate amount of more than
$64, O0O, 900. This, however, IN
cluded the extraordinary expendl-
lures in 1904 of $50, 100000 on. ac-
count of the Panama Canal.
EsDurine the fiscal wear 1905 there
was an addition Of 300 to the in
terest-bearing debt, while there
were reductions of 5000, 675 in the
items on which interest had ceased
since maturity, and So, 1902, 1850
in the debt bearing no interest. The
net reduction was SO, 901. 921.30-
eeThe available cash balance in the
general fund June 30, 1905, war
S145. 477 ,491 80, a reduction for
the year of $26,574o76-13.
"The revenues for the first quar-
ter of 1906 were $147, 014.10 and
the expenditures $156, 5ss.966.66, an
excess of expenditures over receipts
of S., sc. In the first quar-
ter of 1905 expenditures were $17,-
S56,G15 in excess Of receipts.
Omitted States notes to the
amount of $11, 517,579 and Treas
urv notes for 1910, 675 were redeem
ed in gold from the reserve fund
during the last fiscal year. The re-
deemed notes were Immediately ex-
changed for gold, and the reserve
was thus kept intact
sqThe trust funds at the close OF
the fiscal year 1905 amounted to
$685., 49,. 800, a net increase for the
year of $14, 723, 400.
.eThe total amount of United
States paper currency issued during
the last fiscal year was 1861, 75Q,ooo
md the redemptions were $623,O26
GOO. Gold certificates increased
S23. 499. 400, while silver certiti-I
Gates were reduced $5,2t1,0OO and
Treasury notes SO, 565, 900.
On the subject of currency Mr..
Shaw speaks as follows:
'eThe necessity for an elastic cur
reney has received fresh emphasis IN
the financial conditions of the last
few months. Millions were loaned
approximately at l per cent. in mid
summer, and call money reached 20
per cent. in November. The eN-
ceedinglv low rate was about as dan
gerous as the high rate, for the lat
FER was the logical result OF the
former. Such extremes can and
should be rendered impossible.
GAS a means to this end, sug-
gest the advisability of permitting
national banks to issue a volume OF
additional Government guaranteed
currency. equal in amount to so
per cent. of the bond-secured cur
rencv maintained by them, but sub
iect to a tax of 5 or 6 per cent. I'M
III redeemed by the deposit of a like
amount in the Treasury. BY elm
mating the words Secured by United
States bonds deposited with ncthe
Treasurer of the United States from
national-bank notes now authorized
the additional currency would be
identical in form with that based
upon a deposit of bonds, and its
presence would mot alarm, for, II
would not be known. No new md
distinct or unguaranteed form OF
! money should be injected into orr
system. The Tux would be ampEe.
and more than ample, to. cover the
risk to the Government in gnaran-
tceing redemption. Manifestly, this
additional currency would not spring
into being until interest rates ex-
ceeded 6 per cent, and it would As
promptly retire when rates became
normal. Under these or any SINH
lar provisions 10 per cent. money
would be well-night impossible, and
the Treasury Department would be
saved a most embarrassing response
bility. This may not be the only
saaeans ofraddingran clement OF elias
ITCHY To- -our curreIfey system. tho
poad of which is universally recog
L H.