The sun., 1905-12-07
Or dencit tot.................... OF 5000 900 90


pared with 1904, show an increase Of $3,e42,-
935. As, while the expenditures were less by
sl5,l2s ,4O7 So The net result for the fiscal
year was an excess OF expenditures over
revenues of $23 oO4, ,22s,e0.
For the past two years the expenditures
of the Government have been in excess Of
the revenues to the aggregate amount OF
more than $64, 900 900. This, however, in
cluded the extraordinary expenditures in
1904 of $50 900 900 on account of the Panama
Canal
During the fiscal year 1905 there was an
addition Of 5000 to the interest bearing debt,
while there were reductions OF $600,e75 in
the items on which interest had ceased since
maturity, and So 3O2 1880 in the debt
bearing no interest. the net reduction was
So 1901 92l 80.
The available cash balance in the general
fund June 80, 1905, was $l45 AT 4el 80,
reduction for the year of $26,54, ,o7olS.
LOANS AND CURRENCY.
The outstanding principal of the public
debt June 80, 1905, was ss95, ,l5s,340. an in
crease Of 5000 in the fiscal year, due to the
issue of.4 per cent. bonds Of the funded loan
of 1907 In settlement OF accrued interest on
4 per cent. refunding certificates surrendered
during the year, in accordance with the act
OF Feb. 20, 1879
bonds of the loan Of 1908 1918 and per
cent bonds OF the funded loan Of 1907 into
2 per cent oonsols Of 1880 was resumed in
pursuance of the circular published Sept;
IS, 1905, the outstanding bonds to be received
at valuation equal to their present worth
to realize an income of 21+ per cent. per
annum, and the 2 per cent. consols to be
issued at premium OF per cent. These
terms differ from those of the refunding
under the circular of September %, 1903,
~ oola fSv ha
bonds, which is l per cent. less than in
1908.
Up to and including November is there
were refunded $40 ,4Ss 300 8 per cent. bonds
and ss3 ,422, $50 per cent, bonds, for which
the Department has issued $43 9l1 $50 2
per cent. consols of 1880,
The interest bearing debt Of the United
States outstanding November |, 1905, was
$685. 1853 $40. OF this amount, bonds of the
face value of $549 500 500 were held by the
Treasurer of the United States in trust for
national banks as security for circulating
notes and deposits leaving $345 $50 $50 in the
hands of other investors.
IMPORTS AND EXPORTS.
Imports 10 the amount of $1,l17,512 500
were landed upon United States wharves
during the fiscal year ended June 80. 1905,
and upon these imports $262 ,060 ,52S OF duty
was collected. For the same period the
exports of merchandise we're 81 ,51S 581 ,720.
At the port Of New York alone 35o,0 600 in
voices were examined, 7,4sl ,920 packages
were received, and of this number 74sl92
opened and examined. In other words,
for each official day at the port OF New
York 2 500 packages of merchandise were
examined, appraise and delivered.
CURRENCY
On the subject of;the currency Secretary
Shaw says;
The necessity for an elastic currency has
received fresh emphasis in the financial
conditions Of the last few months. Millions
were loaned, approximately al l per cent.
in midsummer, and call money reached rs
per cent. in November. The exceedingly
low rate was about as dangerous as the
high rate, for the latter was the logical re-
suit Of the former Such extremes Gun
and should be r. ndered impossible.
As means to this end. ] suggest the ad-
visibility of permitting national banks to
Issue volume of additional Government
guaranteed currency, equal in amount TO
80 per cent. of the bond secured currency
maintained by them but subject 10 tax
Of or 9 per cent. until redeemed by the
deposit Of like amount in tn" Treasury.
Ry eliminating the words Secured by United
states bonds deposited with the Treasurer
Of the United States" from national bank
notes now authorized the additional cur
rency would be identical in form with that
haSeO upon u deposit OF bOhus, anu ltS pros
ence would not alarm, forllt would not be
known. No new and distinct or unCuaTan-
teed form Of money should be injected into
our system. The tax would be ample, and
more than ample. TO cover the risk TO the
Government in guaranteeing redemption.
Manifestly, this additional currency would
not spring into being until interest rates ex-
ceeded Q per cent and il would as promptly
retire when rates became normal Under
these OF any similar provisions 10 per cent.
money would be well nigh impossible, ard
the Treasury department would be saved
q most embarrassing responsibility. This
may not be the only means of adding an
element Of elasticity TO our currency sys-
TEN, the need OF which is universally recog-
nized | suggest II as the plan which 10 my
mind seems most feasible and one traught
with no danger.
Secretary Shaw renews his recommended
ton that law be enacted giving trust oom-
panies OF large capitalization in large cities
the privilege Of incorporating under Federal
law, with corresponding supervision. They
should, he repeats, be required to keep a
reserve.
MERCHANT MARINE.
recommendation is made for better
merchant marine, The Secretary says:
In the interest of American trade expansion
do not think the Importance of a merchant
marine Is likely to be overestimated That
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