The daily morning journal and courier., 1905-10-24
S64,OOO,OOO EXPENDED
 IN EXCESS OF REVENUE
ABOVE SUM THE AGGREGATE
 FOR LAST TWO FEARS.

Treasurer of the United States in His
 Annual Reports Points Out That This
 Excess is Largely Due in the First
 Year to s5O,OOO,OOO Paid on Account
 of the Panama CanaI-Larger Vol-
 uine of Small Notes Recommended for
 Movement of Crops.
 Washington, Oct. 23.-The treasurer of the United States in his annual re- port for the fiscal year 1905 says:
 'There is an increased demand for more paper currency of the denomin-. ations of $1O and under, owing to the expansion and development of the bus mess interests of the coutry. The treasury has partially supplied the needs by redeeming and retiring notes of the larger denominations and lssu- ing notes of the smaller denomineatlons in substitution therefor.
 "The amount of United States paper currency in denomina tions of SID and under outstanding June 30, 1905, was $7S0, ,782, ,179, an increase of $l4,6S5,S2O during the fiscal year. The total in- crease in these denominations from March 10, 1900 to June 30, 19O5' was $167, ,1S6, ,321, or an average of little more than $31 1,0OO,00O each year,
 'aThe amount of United States paper currency of the denominations of $2O and above outstanding at the close ot the fiscal year was about 91,OOO,O00, eX- elusive of gold certificates, and under present conditions the presentation of these notes for redemption in future will be the only resource available to the treasury for supplying the demand for smaller denominations of currency. The larger denominations are received in small amounts only for redemption. The limit has practically been reached in making changes in denominations through the process of redemption and reissue. The presentation of large notes for redemption probably will be too slow to meet the demand for small bills. During the year there was $6S7, ,54O,- 900 of United States paper currency is- sued and $62S,O26,6OO redeemed. Ma tional bank notes aggregating $S0S, ,29S,- 76O were presented for redemption. or 65.S4 per cent. of the average amount outstanding. The payments for the net proceeds of the notes redeemed consist ed of $146, ,595, JOS in United States cur- rency, mostly in denominations of S5 and under, and of $1O7, ,599, ,547 in checks on sub-treasury officers and of $52,622, 702 in credits, to redemption fund or in general account.
 ''For the past two years the expen- dftures of the government have been in excess, of the revenues to the aggre- gate amount of more than $64,000, 900. This, however, included the extraordin- ary expenditure in 1904 of $50,000000 on account of the Panama canal: this is the first year in the past six years when theordinary expenditures were in excess of the revenues, and the amount was $23,0O4,22S.
 ''The available cash balance June 30 last of $145, AT, ,491, largely the accumu- lation of former years, is deemed ade- quate to meet the demands upon the treasury for some time to come"
 Referring to the movement of the crops, the report says that since Jan- uary, 1900, this movement has averag- ed about $27, 7,000,O00 annually, and in this connection action by congress to enlarge the volume of small notes is recommended in view of the heavy de- mand for them which the treasury has not at all times been able to meet
 The coinage of silver dollars was dis continued during the year owing to the exhaustion of the silver bullion avail able.
 It is suggested that provision should be made that will enlarge the facilities to all holders to exchange worn for new currency and in furtherance of this ob- ject, section 3,932 of the revised statutes may be amended to permit holders of defaced and mutilated United States currency to forward the same by regis tered mail, without charge to the treas urer of the United States for redemp- tion."