Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1907-02-14
SECRETARY SHAW Makes COM.
PLETE REPORT ON SITUATION.
No Occasion for Alarm. National
Prosperity the Cause of Seeming
SfringenCy in the Money Market.
Much Cash Tied up in Real Estate
and Mining Options.


tracted more than usual attention this
year. The secretary says: "There is
no occasion for alarm, our only anxiety
need be lest We fail OF facilities to prop.
erly garner, store, transport and market
our multiplied blessings. Let every man
be Of good cheer and try to be conserva-
tive in everything except thankfullness. j"
According to the secretary's report the
receipts for the calendar year, 1906,
amounted to $685., ,O0O,O0O and the ex-
penditures at $5G6 100000 or an excess
of receipts over expenditures OF $29, ,OOO.- :
900. As there has been no change in
the tariff laws or the laws relating to in.
ternal revenue, secretary Shaw says the
large increase in receipts is due solely to
the extraordinary trade activity. The
total expenditure. however, for 1906 as
compared with 1905, he says, shows a
decrease of but $5,OO0,OOO. The books
show Surplus receipts over expenditures
$25, 100000, as compared with a deficit
OF '$S,000,0O0 for the corresponding
months Of the previous fiscal year. The
cash fin the treasury is $4,000 900 as
compaaed with $l7l 100000 year ago,
an increase of $l9,0OO,OOO. The cash in
national bank repositories is $3.50 OOO, :
coo as compared with $65 100000 a year
ago. Against this cash there are liabil-
lies at the present time $13, 900. 900 great.
er than at the same time last year. The
available cash balance has increased
during the year, $lO1 1000, 900.
The paragraphs in Secretary Shaw's
report relating to money in circulation
are particularly interesting at this time.
He says that during the last twelve
months, the money in actual circulation
exclusive of the amount in the treas ury
vaults, has increased over 5000. 900 OOO.
OF this increase $145 900. 900 is available
for bank reserve and 100000, 900 is in
national bank circulation. "This," he
says. "seems ito be complete answer
TO the oft-repeated and ill-advised criti.
cism that the independent treasury sys.
tenn necessarily results in contraction
when money is most needed" He main
tains. therefore, that the existing money
stringency, worldwide in it's extent, is
traceable in no respect and in no degree
to the independent treasury system Of
the United States. He says the mani
fest and admitted shortage has been
caused by the unprecedented prosperity
in this country and reasonable prosperi-
ty everywhere. The people Of the United
States, he declares, consume, per capita,
more food, more clothes, more OF every
thing than any other people in the
world, ann when prosperous they i'm
port very largely. This, he asserts, nat
urally encourages industry everywhere
and unusual business activity calls for
unusual amount of actual money and of
credits based on actual money. As to
our currency system, Secretary Shaw
says that in his judgement, it permits of
adequate expansion, but that its weak
ness is its failure to produce contraction.
The volume OF money, he contends, does
not respond to the volume OF our busi-
ness. The annual increase may be suf.
ficent but there is no annual contraction
during the dull summer months. "Only
the unthlnking and ill.advised," he says
"charge the admitted stringency solely
or largely to stock and bond specula-
tion.' Just now speculation in real es.
tate is at high tide and the opinion is
expressed that very likely as much mon.
ey is tied up in options and margins in
real estate as in options and margins on
stock and bonds.