The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-12-05
BANK COOPERATION
As CURRENCY I CURE
Secretary Of Treasury Shaw in
Annual Report Sets Forth
Bankers Needs.
Special to The Journal.

treasury Shaw believes, will remove a
large part OF the criticism of the
american monetary system on account
report to the president, submitted to-
day. Yy.Ie -
by which the national banks of the
country could be made to cooperate,
the major portion Of legitimate criti-
cism to, which our present system is
now subjected would soon vanish.
| know that if there were the
slightest measure of cooperation be-
tween the national banks Of the coun-
try very large reserve would be gath
cred IN midsummer to provide for In
creased business operations incident to
the crop-moving season and the revival
OF commercial activity annually wit
messed during the autumn and winter
months. ~-~.-s,- -. .>>........-.. ..-
Two Suggestions.
The banks now, he says, do not CO.
operate in the slightest degree, and
whether 1t can be secured, he says, is
First~A graduated reserve, deter
mined by, statute: The objection to this
plan is that conditions vary with diff
ferent seasons. Sometimes the crisis is
deferred, and occasionally the most
stringent season is during the spring.
en %oS Be- oStteF 5 sn tb in aegrsfa4v
Of the treasury with authority to re-
Guire. all banks, at certain times fixed
by him, to slightly and gradually in
crease their reserves and hold the same
within their own vaults, with CORE
spending authority to release the
same from time to time as in his jud e.
ment will best serve the business in
terests OF the country.
Actual experience iustifes the state
ment that the American people hold
the secretary of the treasury quite
largely responsible for financial condi-
tions. This being. true, he should have
that measure Of discretion and authori-
ty requisite to enable him to fulfil this
expectation. Can he not be trusted as
| a fnancier as well as; in the capacity
of an expert health offcerf
Disapproves Central Bank.
Secretary Shaw discusses at some
length the project of central bank,
and casts doubt upon the success Of
| such plan. Other suggestions, made
in former reports, are repeated, includ-
ing: ..3<7U&7 r.,
A law giving trust companies Of large
capitalization in large cities the priv,
|lege Of Incorporating under national
with no authority to issue circulation.
A Ii beralization of our drawback
laws. Any provision that will assist
in securing a foreign market for the
product of American labor has the un-
qualified Endorsement of the present
head of this department.. -,
Legislation which will insure mer-
chant marine. The next twenty years
will witness as intense commercial con-
tests for trade expansion as were ever
prosecuted for territorial expansion. It
| is idle to suppose the United States can
attain any; considerable measure Of sue
| cess without. as favorable equipment as
its commercial competitors. -: r. 4<>. E..
Years Finances. & -. :
The secretary's statement Of the
finances Of the country shows total re-
ceipts for the year ending June 80,
2s5, 634.6S oyer 1906. F f' IL LARGEST yvsy
items. lin the list Of receipts are: Gus
toms, $500, Psi ,S77.77; internal revenue,
$249 ,150 ,212.91; postal revenues, $751;
932,782.62. The expenditures were;
$a36,7l7, 582;01, leaving surplus Of
$25 .6o9, 322:6a, as against a deficit in
$l6,612,0s3,46. The table Of expendi-
lures shows the following items:
For the civil establishment, including
foreign intercourse, r&public buildings,
Panama canal, collecting the revenues,
District of Columbia, and other miscel.
laneous expenses, $149, 600, 55O.79; for
the military establishment, including
rivers and harbors, forts, arsenals, sea-
coast defenses, and expenses of the war
with Spain and in : the. Philippines,
! SLY SAC, 692.37; for the naval establish
ment including construction of new
vessels, machinery armament, equip
ment, Improvement at, navy yards, and
expenses Of the war with Spain and in
the Philippines, $110.474 ,264.4O for In
dian service, $12,746,S59.0S; for pen
sions, $l41, 034, 561.77; for interest on
the public debt, $24,308, 576.27; for de-
fciency in postal revenues, $780,
2 29a39 for postal service, $le7,932;
| National Bank Growth.
=, The record for the growth Of ma
tional banks is as follows:
NDuring the year ended Sept. 80,
tai Of 21,260,5 800, were chartered, Of
which 300 were banks with $4,000 cap
ital, and al with capital of $4,000 or
over. Fifty-three of these banks were
conversions of state banks, 1874 were
reorganizations Of state and private
banks and 263 were primary organiza-
tions. Since Oct. L, 1905, 80 national
banks, with capital of $13,523, OO0
We're placed in voluntary liquidation
and IA banks, with capital of $780,:
900, were closed by order Of the con
troller Of the currency.'
-, Debt Decreases.
Of the bonded debt the secretary
says: f. ...."..a. >-s.. .5..<...
Notwithstanding the expenditure
of $lO,000,000 to the Republic of
Panama, and $40,000,OO0 to the Pana.
ma Canal company for the right-of-
way on which to construct the canal
and $10,000,00o expended in prelimi.
nary work upon the canal, and the is.
suance of $30,000,OO0 in bonds for con
tlnuing the work of construction, the
bonded indebtedness of the government
has decreased during the last five
wears $l4,O00.00O, the annual interest
charge was decreased $4,OOO,OOO, the
money in the treasury to the credit of
the general fund has increased nearly
$5O,000,O0O, while the total circula.
ton in the country has increased $780,
100000, and the per capita circulation