Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-12-06
ANNUAL REPORT
SEC, TREASURER
REPORT SHOWS INCREASE IN
RECEIPTS OF $S4,33s, 435 AND
$25,77I,171 IN EXPENDITURES
MONEY STOCK INCREASED

WASHINGTON, Dec. 6.-The re-
port of the secretary of the treas
ury, made public yesterday, shows
the receipts of the government from
all sources for the fiscal year ended
June 80, 1907, to be:
Total expenditures, $762,4SS,-
1882, showing a surplus of 1884,
236, 5S6-S0. Compared with the ifs
cal year of 1906, the receipts in
creased $S4,33S,435.
There was an increase of $685.
771,l71 81 in expenditures.
The monetary stock of the country
increased $180,5S4,416 during the
last fiscal year. The growth in gold
was $125,6S2,3S6, in silver $13,-
623,750. and in national bank notes
$42,676 $50, while there was de-
crease of $1,39S,O00 In treasury
notes Of 1890 At the close of the
fiscal years 1907 the money in cir
culatiOn amounted to $2,772,956,-
ass, or per capita of $32.22. The
percentage of gold to total circula-
ton was 1890.
Under existing law a national
bank located in a city which is not
a reserve city must maintain Is per
cent Of its deposits as a reserve. 1t
may count it's per cent redemp-
ton fund, held for the redemption
of national bank notes, as a part OF
the reserve, and after deducting this
fund 1t may deposit three-fifths Of
the remainder in some bank in a re-
serve city.
The national banks located in re-
serve cities and in central reserve
cities must maintain 20 per cent of
their deposits as a reserve, and they
may count their FER cent redemp-
ton fund as part of the same, and
the banks located in reserve cities
may deposit SO per cent of the re-
mainder of their reserves in banks
in central reserve cities. There are
three central reserve cities, New
York, Chicago AMI st. Louis. There
are about 40 other reserve cities.
According to the report Of the
condition Of national banks on Aug
ust %, 1907, the amount of reserves
held by all the national banks in
the country was $1.121,358,39S.
OF this amount about $165,0O0,-
600 was held in the three central
reserve cities as deposits of banks
located in the 40 other reserve
cities. A further amount which
cannot be estimated was also depos-
tied in the centra. reserve cities as
constituting the three-fifths reserve
which all other Banks might so de-
post.
Assuming that the deposits in
central reserve cities by banks not
located in reserve cities to be $685.
100000, the amount so held by the
central reserve cities would be Jap
proximately 5000, 100000. The total
amount held by central reserve
banks due to national banks was
$247, 100000, so that nearly one
half of the deposits by other ma
tionaal banks in the banks of the
central reserve cities consisted of
funds counted as reserves by ma
tional banks outsl"e of the central
reserve cities.
1t might be regarded as worth
while to consider the effects of
amending the laws SO that the coun-
try might be divided into geographic
cal or commercial sections, with pro-
vision for the retention within each
section of a larger proportion of the
bank reserves required to be held
against deposits in the national
banks of such section.
The result of this would be TAX
ing present conditions, that the
banks in the three central reserve
cities would lose a considerable
amount, and this amount would be
transferred to the banks located in
reserve cities in the different
sections and would necessarily be
held by them as cash.
This addition to the actual anC
available cash in banks outside Of
the central reserve cities would con
struct an element Of strength
which, in times of stress, might aiC
materially in diminishing the vic
lence of financial disturbances.
Such a provision of law as THU
would not affect in any way the de
posting by national banks of thei