The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-06

AT all ports. large and small, IL cost the
past year less than 3 cents TO collect each
dollar of customs revenue, the smaleit
cost yet reached. But there were many
ports where the cost was out of all pro-
portion 10 the revenue collected, and some
where there were no receipts at all. This
emphasizes again the necessity for legis-
lation to bring about a Encouragement
of customs districts"
BIG IMPORTS OF GOLD.
Reviewing the causes and effects of the
recent monetary stringency in the East
and the West, particularly, but more or less
throughout the country, Mr.. Shaw says:
I'm February Of 1908, $40, 900, 900 was
deposited in national bank depositaries
in seven Of the principal cities and salts
factory security other than government
bonds accepted, but with the distinct un-
~derstanding that it would be recalled in
july of that year. This relief was not
sufficient, however. Banks everywhere,
West as well as East, found themselves
in the spring with surplus reserve exhausted.
The foreign exchange market responded
alphabetically in a very marked decline
in sterling exchange sufficient to have in
sured the importation Of gold II the banks
mad been in position to buy the exchange
with which TO secure It,. The Secretary
then offered TO make deposits, satisfactorily
secured, equal in amount to any actual
engagement OF gold for importation, the
same TO be promptly returned when the
gold actually arrived. In this way apprOXi-
mately $50, 900 900 (more than six carloads)
in gold, largely in bars, was brought from
abroad, Most of this came from Europe,
but in part from Australia and South
sThis was accomplished without ex-
pense TO the Government and without
profit to the importing banks, but with great
benefit to the business interests of the coun-
try. The various banks which imported
this gold lost in the transactions several
Thousand dollars, as established by their
books; the price OF exchange promptly
advanced so that merchants and exporters
of grain and cotton having exchange to sell
were benefited in excess of $3.50 900, and
interest rates dropped sufficiently to effect
a saving to borrowers in New York city
alone of more than 2,OOO,0OO. This means
of relieving financial stringencles, which
has been once since repeated, attracted Tar
more attention throughout Europe than in
the United States, though IL has been widely
commented upon in both places. IL has at
least demonstrated that the United States
is in a position to more efectually influence
international financial conditions than is
any other country, and Justlfies great cau-
ton lest while protecting our own interests
we cause distress elsewhere which will soon
be reflected here.
CROPS TAXED
THE harvest Of 1905 overtaxed our
AuAAN 49, SNA
capacity Of our railroads, and, in conjunc-
ton with our unprecedented industrial ac-
tivity, strained well nigh to the limit the
credit possibility of the country. A cotton
crop sometimes estimated at IL ,O0O 900 fales
$50. 900, 900 bushels of wheat. near 1900. OOO, 900
bushels of corn, 800 ,OOO, 900 lushels of po-
tatoes, garnered in q single season, re-
duired 10th actual money and hank credit
fased thereon. During the summer months
grain sacks were not in use, Rranaries and
warehouses were empty, freight cars stood
on sidetracks, business men tished in noun
tain streams or rested AZ vacation resorts.
Meanwhile the ranks were comfortably
well supplied with money, and interest
rates were low. Everything scored serene
TO everybody except to those who recog-
nized that in this latitude crops mature in the
fall.
. MORE GOLD IMPORTED.
Finding transportation facilities made
uuate TO promptly export our agricultural
products, the Secretary Of the Treasury
deemed il wise 10 again facilitate the i'm
p~ortation Of gold from abroad with which