Los Angeles herald., 1906-02-14

100000; Germany, Ssse,0000OO; Russia,
&s3,000,000 and GreaN Britain $685.,
000,0 Silver in the United States ag-
gregates S6S5,00O. 900; in India, $6OS, 00O,-
0C0; In France, SAIL 100000; in China
$3.50 100000. and I'm Germany s2t0, 900, 900
I'VE have learned that surplus is a
very comfortable thing to have. There
has been a great deaf of well merited
criticism against the working of the
subtreasury system that requires all
of the customs receipts to be deposited
in the subtreasury Of the United
states. This course takes q vast
amount Of money out of circulation,
while the Internal revenue receipts are
all deposited in banks which permits
the money to be in free circulation all
the time. For this the government
gives bond.
Transfer System
"Some have suggested that % per
cent of customs receipts should be
placed In banks, thereby preventing a
certain amount of currency from being
locked UP and withdrawn from circula-
tion, but modern methods, however,
have utilized the accumulation of
money in the subtreasury in large mon
etary transactions to very good ad
vantage to the business and banking
community. This is what is known
as the transfer system from the differ
ent subtreasuries of the United States.
"You on the Pacific coast are par
ticularly favored In this respect Per-
mission was given to the treasurer of
the United States in order to facilitate
the transportation of funds derived
from the products of the mines that
deposits could be made in the sub
treasury of the United States at San
Francisco, and on telegraph order
transferred to the sub-treasury i'm New
York, and pay it over to such persons
as might be designated by the party
depositing the money in San Francisco.
Accommodations have grown to enorm-
Gus proportions. Transfers of three
millions have been made in a day.
This system Is especially beneficial in
times of incipient panlcs, when large
sums are required to prevent runs on
banks, as was the case at New Or
leans, in Chicago and at st. Louis.
Hundred Millions Gold
"Last year eighty-eight millions of
gold were produced, sixty millions be-
ing left to be coined or used in arts.
The output this year will be one hun
dred millions. The change has been
wonderful in the last twelve years, in
the accumulation of over 1000 millions
of gold in the country
"1n California you have presented a
11OSI uIluue anu SOllu IlOl
paralleled anywhere else in the world.
Your money medium is almost entirely
in gold and silver. 1t has been a great
object lesson to the world The agita-
tion is for the resumption of the use
of solid money.
Investigation has proven by chemi-
cal experts that there Is danger from
infection or contagious diseases in the
use of paper money, on whose face
n rflin fcon
and that something in the way of san
itation should be done to protect peo-
pie in the use of paper money
The women of the country, who
represent the cleanest portion of race,
insist on going to the banks that will
pay in new or clean money.
AS to Legislation
II do not anticipate any complete
legislation in the matter of elasticity of
the currency nor in the form of loan
ing on the assets of the bank from
the taxation of the bank for any emer-
gency circulation that might be noted,
for the experience of the Legislation
has shown that the American people
are prone to defer legislation on any
thing but what they call burning ques-
tions,' and the questions of the hour
seem to be the for rate Legislation,
Panama and the reduction of the tariff
in the Philippines.
with these questions out of the way
look for very intelligent and careful
and effective Legislation to meet the
growing needs of an extension of the
banking system.
1T Is estimated that the production
of gold in the next five years will equal
six hundred millions of dollars. We
are quickly coming to metallic
basis in spite of all paper issues of the
government.
Pacific Discrimination
II had long heard that on the Pa
ci1c coast paper money was greatly
Disseminated against in favor of coin
and 1t naturally stirs my blood to hear
the notes of the government spoken of
as rags
IT believe II clean money was sub
stituted the feeling would disappear.
A gentleman told me in San Francisco
that new $40 gold certificate might
be refused in the interior of California
because the people were not acquainted
with it, With the issue of IS and $40
gold certificates in place of present
currency the whole country would wit
ness the biggest boom I'm prices and
values since the greenback days"
Mr.. Treat paid a high eulogy to
Southern California, speaking of the
rich mineral resources, the incompara-
BILE climate, the soil and the faith of
the people i'm the future.
Secretary Treat is accompanied by
John Leary and L. A. Hamilton. They
will leave for the east today at noon.
Mr.. Treat will return in June, and
will be here on official business for a