The Cairo bulletin., 1907-01-01
Issues Report on Annual Condition Of Finances
Showing Big Gains
SAYS MONEY sTRlNGENcY IS DUE
ONLY TO NATIONS UMPIRE.
cEDENTED PROSPERITY.
CONTRACTION IS NEEDED
He Thinks as Well as Expansion in
Times Of Need--Sounds Note Of
Wsrirg and Says Masses
Will Suffer IL a Crash.

1
Wishing on, d. c., Dec 3i.--"Thcre
lis no occasion for amrm. Our only
|anxiety need be lest we fail of facili-
tiles properly to garner, store, trans
port and market out mutt piled bles i
ings Let every man be of good
leheer and try to be conservative In
Everything except thankfnluess."
Secretary of the Treasury Shaw
thus concludes his resume Of the
years financial record which he says
has been prepared in response to mul-
tiplied requests. In round numbers h,
places the receipts for the calendar
year of 1906 at s650.000000 the expan-
ditures $5GG,000,000 Shaw says the
large increase In receipts is due solely
to extraordinary activity Total ex-
penditures however, for 1906 compar
ed with 1905, he says shows a de-
crease of only $5,000,000.
Surplus instead of Deficit
Discussing the finances OF the gov
ernment for six months of the present
fiscal year just closed the secretary
says the books Of the treasury show Il
surplus receipts over the expenditure
of $4,000 900 as compared with a de-
felt Of $4,000, 900 for the corresponding
is $190,000000 as compared with SILL
100000 year ago. The cash In ma
tional bank repositories s159 000,000
as compared with s65, 100000 year
ago The total cash in the general
fund Is S356.000 600 as against s242.-
100000 year ago. Against this cash
there are liabilities at present cf .Sle~s
100000. greater than at the same time
last year The available cash balance
has increased during the year Sl0l.-
Oo0,0 900 with the general fund stand
ing s237 900 GOO Shaw remarks that
bonds maturing July I, 1907, can be
paid. IL It shall be deemed wise and
still leave working balance OF more
han sl20 100000.
During the last ~ months. the sec
'etary continue. money in actual cir
,ulation. exclusive of the amount I'm
he treasury has increased more than
200, 600 900. OF this increase slf5
100, 900 is available in bank reserves,
nd $60,00000o in national banks cir.
ulation. This" he says seeems to
% compile answer TO oft-repcated
nd adverse criticism that the lndo-
endent treasury system necessarily
esuIts I'm contraction when money Is
lost needed.
Treasury System Not TO Blame.
He maintains. therefore. that the OK.
sting money stringeney. Worldwide
I it's extent Is traeeable in no respect
nd IN no degree 10 the Independent
reasury system Of the United States.
Fe says the manifest and admitted
hortage has been caused by unprece-
entcd prosperity in this country and
easobale prosperity everywhere.
The people Of the United States he
eclares. conrume per capita more 9f
IT,. any other people IN
be world. and. when prosperous they
IMPORT very largely This he asserts.
aturaly encourages industry eyelA
here and unusual business activity =
alls for the unusual amount Of ac-
lal money and Of credits based on
ctual money.
Sees weakness in Reform.
AS to the currency system reform.
haw says, that In his igd~me-t 4
ermits adequate expansion .at
5 weakness is its failure to produce
The volume 4 money. h
docs not respond 10 tho vol.
me ~ our husins = The animal in :
ease. he adds. may b. sufficient but
Iere is no annual contraction ,,arins
c dull summer months. only the
thinking and IN advised be saws.
hsrge the admitted sirinGcucy soIe'y
largely 10 stock and bend specula.
IN.
Much Real Estate Speculation.
JUS nov speculation in real estate
at high tide. be saws. and ths
iaion is expressed that very likely
much money Is tied aD in options
& marg rs in real estate as In o7-
ms and margins on stocks and
nds."
The feet Of the pre.eat car shortage
fhe money market also is alluded
He points out Il large sums are
q up IN merchaHs that lic for
ys. even weeks sffs- cked and
# this amount is represt Z some
ere by borrowed money ann, he de-
red shipments extends the loans.
C same Is true Of all material on its
3 t0 the factories
1C~--.f,,sos =, TNl-s psrea