Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1907-12-19
PLEADS FOR CHANGE
IN MONETARY SYSTEM.
In His Annual Report to Congress
MFR. Cortelyou Advises a More
Elastic Currency System.

Disaster to trade, commerce, labor
and investment can be effectively pre-
vented only by reorganization of the
national monetary system, according to
the report made by Secretary of the
Treasury Cortelyou to Congress.
The Secretary deplores that under
existing laws his hands are tied dur
ing financial emergencies such as
stirred the country lately. He has no
specific plan for monetary reorganiza-
ton, but he makes strong appeal to
Congress for immediate remedial leg
iSlation. The report declares that
banks as well as individuals boarded
money during the financial stringency.
The report gives in detail the at
tempt made by the Secretary to head
off bank failures and business suspen-
siOns in the East by the deposit of
government funds. The government is
shown to be in an exceedingly pros
porous condition with surplus at the
close of the fiscal year of SS4, 236, $50. 20
of receipts over expenditures. what
has happened, not only this year but
many times before" says the Secre-
tary, should serve as an admonition
to enact wise laws for the prevention,
in the future, of disasters due in part,
at least, to the imperfect organization
Of our monetary system
The Secretary points out that the in
creasing rate Of interest charged for
call money and time money, as well as
discounts on commercial bills, indicated
a progressive diminution of available
cash during the early part of the year.
To offset this, distributions of $780,
100000 of government funds were made
among several banks. Four days prior
to the Eastern crisis $35,000,000 more
was transferred from the treasury to
banks, for which State, municipal and
railroad securities acceptable to vari-
Gus States were taken as collateral. On
Nov. II the sum of 500, 1886, 237.04 was
on deposit in national bank deposit
taries throughout the country. at is
said that many of our people have
boarded money" the Secretary states
in his report ''This is undoubtedly
true; but so have many of the banks"
The report shows the total receipts
of the government from all sources for
the fiscal year ended June 80, 1907, to
be 1916, 725, 339, and the expenditure.
S762, ASS, 1913, leaving surplus Of $751;,
236,5S6. Compared with 1906 the re-
GENTS increased SS4 33S 435 and the ex.
penditures 325,771, 171.31.
The report states the total debt Of
the United States to be at the close of
the fiscal year So, 457, 1SS, O61.54, against
the payment of which there is in vari-
Gus forms of cash in the treasury or to
the credit of the treasury, the sum of
81 ,6SS O27, 06S.S3. There were $3.50
banking associations in existence al
the close of the year, with an author
lied capital of 500, 494,7
At the close of the fiscal year, ac-
cording to the report, the money in cir
culation amounted to S2,772, 956. 400, or
a per capita of 1920, while the per-
centage of gold to total circulation
was $41.90. Paper currency was is
sued during the year amounting to
S69S 273 900, and the redemptions dur
ing the same period were $3.50, 902, 900.
The treasury holdings Of gold at the
close of the year 1906 amounted to
$780,, 051 5000, and this had increased
at the end of 1907 to 500, 691, 1904.