New-York tribune., 1907-12-06


further time to retain the deposits 49, 90, farms
The per cent funded i9an OF 1907 o yhe S United
States after July 1907 The amount ontsIaIuIs u
Of the bonds being presented from cay 70 & usg
for sale par, with interest 10 Apr l. As ~ Wi
sections Of the country. TO increase the dsburse-
aents from the Treasury the Owners ol nng etPed P
March II TO surrender their bonds for reoeinpit0
between the date OF its issue and June - le
Meanwhile the disposal Of the TeipeIb 5anf had d the
nntfc t1ah Of fbree methods First redemption
second lis continuance at lower rate OF ~. =
at the pleasure of the United States; t9rG Si,r r5 "a
1899, into per cent colSois u i''' - N
The redemption the loan would take fen@d fe0,@ @ 3e
hFeaslTy AZ 64ui IN Hew Of the uncertainty then ex-
istlnc as to future financial conditions Its con
ance at lower rate OF interest whe poSs,f ia aS
some adyantages was on the whole. UNCERTAIN ~ ~
10 it's operation and effect So IL was ii aecie IN
amomnt which could easily be redeemed in July
without disturbing fnncidd do there Was published
!I Slsyitiar the surrender of s50G0N OF inc
bonds Tor refundin into per cent cons9ls 8f Ia Ia
xed per cent and the Old % ponqs WI tGe " act Of
March a. 1900 namely price 9nrnm Of 81 per
cent the investor. the clrc9l'! III ~ tba re-
rander ,f the bonds also included a cail Ior tnS
ing after the refundnG was dlScoI,'f f ecf,,ndinr
this circular the department reclve1 sn l ,d tbar re-
matned outstandlil5 bonds to the amount of
$s6i2l.450, which mstured 1g9 and ceased 10 '''' -
A. inc on tiSne @ approached FOR the redemption Of the
4 1,er cent bonds il decided to Withdraw iI"r I
the banks the deposits lodged Win flei en-, a. in fa
sI night not be materially reduced by the
redenu;:or of the maturing bonds ana tnat @ Is 70
rart7en; might be in position later In tIle Sear @ ~
afford relief 10 the money market during inc ctGp G
so5 m9y9g RF5oa made s on june M - o the dae
he Tnir 10 or earlier. at the convenience OF tnt
dsp3s s ssnkS o Tho or SaI the dsT mssnoe
and without any disturbance 10 INC ni'h''oi'
a'l9h ~ rursusnce OF the authority contained in n"
act Of Congrsss app52v&g & 1!t ~ Trea ss s11ry cities
have been instructed 70 deposit their etIS x.
ope io~atpd In the same town. There has also beer
transferred 10 banks from time to time OF tlIe
& ssiPts aoS1t of Gqs1S Of = - The total trans
ferred national bank depositarles IN an ie an
ceiving customs revenues ur to NOVEMBER - "p
+bis manner ct sub-Treasury cities has been under
consideration FOR some time but no salisi'S''''
conclusion has yet been reached
Modification Of the prevailing custom as regards
hanI, reserves was recommended by Nr. Cortelyou'
as follows:
Under existing law national bank located in q
city which is not reserve city must HldllteliI III IL
per cent os lis deposits as reserve 1t may count
It's per cent redemption fund held fcr the iE re-
Gepfon 1d 1f afer ddacg I5h this fund It may
a reserve CITY. The national banks located in re
serve cities and in central reserve clues mus liid
tain . per cent OF their deposits as reserve ana
as part Of tho same; ard the banks iocatea IN r.
adeT aa5he qS Of the @ restrTes in banks in central
serve cities There are thre9 6sn'rs e are bout
forty other reserve cities. .,., -. ~
t,onsI bsnss on Aue1Ist 2 1901 the amount of
serves held by all the national banks IN the coEh
o oo0 was held in three central reserve cities
as deposits Of banks located in the forty otheI
frrrfn
ser cities as constituting the three-ifths reserve
the deposits in central reserve eils s o y % ont
SO LeId bv the central reserve cities would be ap-
proximately $4,000 900. The total amount held by
st27 o6ooo, so that nearly cnehaf OF the deposits
By other 9aona sans IN Of te nds eonned as
by national banks out side OF th9 centrai re-
II might be regarded worth while 70 consider
the effect Of amending the laws so tlat tIle cuum @
cial sections with provision for the retention
fhn ssGR section Of to sTfeT b d deo
IN the national banks Of such section Inc feIul. t
the banks in the three central reserve cities would
lose considerable amount and TINS amount I woeI
be transferred banks In the reserve ces l3Ga'sd
in the different sections, and would necessarily DC
This addition 20 the available and actual cash in
banks outside of the central reserve cities Wouid
Of etrels mias aid materially diminishing The
violence Of financial disturbances. Such pro-
fhl0a t a.nnsin ~ by national banks OF, their unem
ploved capital outside ot their reserves, wherever
they could best use If
Regarding national bank note circulation Ny
Cor;elyou said:
Section of the act approved March T. 1so1' tn-
titled An act to amend the national pan DaI,hiE - Goo ~;
TO 50 ;.c9 90 month tho amount Of lawful money
which might deposited with the Treasurer OF inc
nited States for the retirement of the circuIahg
notes OF national banks owing 70 the cur CUT M
months the national banks have taken opt ciIcuIar
ton in large AMOUNTS r9 0cto9er o foree re- tat At
at a period not very remote these banks VIII not
circulation but should be encouraged TO 90 SO. -
is therefore recommended and urged Ihat VT 90
I5o5 such 70 reree Of circuistion be within
the discretion of the Secretary of lhe lieaS"'''
Supervision by the Treasury Department OF
surety companies doing business by the govern
ment was thus recommended in the report:
Within the last few years there has been great
increase the number and amount of bonds WIZ
estimated that the aggregate amount OF such bonds
written in favor OF the 6 m m doTs l" i
stances companies have written single oonds IN an
amount greater than their total capital and surplus
lations tie fixine a limit 10 the liability which any
risk running to the treasury Department. and pre-
scribing the general conditions under which the
business should be conducted Cnder lls opeIa-
tions conditions have improved, but IT seems essen.
tisi in view Of the sgnfgqe @ s, f ,nersne e1 In a
should be created III this department TO supervise
and with ample power 10 examine and investigate
the solveney aud methods of the various companies
doing business with the government The depart
rneut could this means better safeguard the in
terests OF the government, could secure uni
forrlity OF forms, and could supply Information
with reference 70 bonds and bonding companies to
all the other departments Of the government
Legislation terminating the liability of the sure
ties on bond in regard to any future transaction
after new bond has been executed at the end OF
four years required by law for the same class
OF disbursements, is also desirable
The total receipts OF the government for the fiscal
wear ended June 30 last were ss46. 5Sss g. The
bulk of this CAME from customs. sS2 S62 70; from
internal revenue s2Ss 772 S. and from postal rev.
enues s1s2 o5 50. The expenditures totalled s762