The news-democrat. (Providence, R.I.) 1906-1909, 1907-01-01

Washington Jan. 1.-"There is no oc-
| casion for alarm. Our only anxiety need
be lest we fail OF facilities 10 properly
garner. store. transport and market our
multiplied blessings. Let every man be
OF good cheer and try 10 be conservative
In everything except thankfulness.'
Secretary Shaw thus concludes "A re
sumo OF the years financial record,
which he says has been prepared in re-
sponse 10 multiplied requests. In round
numbers he places the receipts Tor the
calendar year 1905 at s625 600 and the
expenditures al S566 100000, or an excess
OF receipts over expenditures OF $5s.oO0OV:
/ AS there has been no change In the tarlit
| laws or the laws rela ting 10 internal rev.
! enue. Secretary Shaw says the large in
| crease I'm receipts is due solely 10 the eN-
/ traordnary trade activity. The total eN-
| penditures, however. for 1906. as com
| pared with 1905 he says, show a decrease
| OF but S. 900.
Discussing the finances of the govern
ment for the six months OF the present
fiscal year Just closed, the secretary says
/ that the books OF the treasury show sur
plus receipts over expenditures OF %5;oo,o
| 600 as compared with a deficit of &OO'WO
| for the corresponding months OF the pre-
/ vlous fiscal year The cash in the treas"
! ury is Sl90.000,000, as compared with sll,-
! 100000 a year ago, an increase OF Sls.VDWo
! The cash In national bank repositories Is
| $3.50 OO0, CO., as compared with S5,0C0ON a
| year ago, an increase of S94,00O,O0o. and
| the total cash in the general tund is
! $3.50 900 600 as against S242 100000 a year
! ago Against this cash there are hablll-
/ ties at the present time Of Sl3,00OOO great
| er than at the same time last year The
| available cash balance has Increased dur-
| ing the year $10l 100000.
! With the general funds standing at
| S237 10000. Secretary Shaw remarks that
! the bonds maturing July l. 1907, can be
] paid. IL IL shall be deemed wise and stun
! leave a working balance or more thah
! $l2OOoOOcO.
| III the owners would accept the money,
he SAYS the bonds could be paid now but
| he doubts If any considerable number or
! the holders would accept payment at thls
| time because they are OF the class Whlcn
| cares for little else than certainty OF se-
| curitv and exemption from taxation. Mr.
| Shaw says he has thought best, however
| to leave TO his successor the discretion
| of paying these bonds at maturity. or OF
! refundng such portion as he may deem
During the last u months. the secretary
continues. the money in actual clrcula-
| ton. exclusive OF the amount in the treas
/ ury vaults has increased over $2cD,cp,Vo.
! OF this increase $145 100000 is available Tor
| bank reserve and s60,OO0.0o0 is in national
! bank circulation.
"This " he saws. "seems to be COM
plete answer to the oft-repeated and Ill
! advised criticism that the independent
| treasury necessarily results in contrac-
| ton when money is most needed
He maintains therefore. that the exist
! ing money stringpncy WORLDWIDE III lts
/ extent Is traceable I'm no respect ana IN
D
system OF the United States. He says
the manifest and admitted shortage has
been caused by the unprecedented pros
perity i'm this country and reasonable
prosperity everywhere.
AS TO the currency system OF the United
states. Secretary Shaw says that in his
I judgment It permits adequate expansion,
/ but that it's weakness Is its failure 10
produce contraction. The volume OF
money. he contends. does not respond to
| the volume of our business. The annual
decrease he adds. may be sufficient, but
| there is no annual contraction during the
| dull summer months
! 'Only tho unthnking and i'll advised
| ne says charge the admitted stringency
solely or largely to stock and bond spec
ulation.
at high tide and the opinion is expressed
! that very likely as much money is tied
| I'M in options and margins i'm real estate
as i'm. options and margins on stocks and
| bonds.
"It is idle TO complain OF the inevta-
| BILE" he continues THE spirit Of specu-
lation is among us. and like the drink
habit those most addicted are frequently
! the loudest in denunciation. II i'll becomes
| the real estate speculator TO decry every
other manifestation OF the desire to get
/ rich quick"
The effect Of the present car shortage
The secretary says:
"A larger crop of cotton than usual and
an unprecedented yield of cereals, fruits
| and every other agricultural product has
| filled the granares and warehouses TO
| overf1owing and congested every import
ant railway. A few years ago the freight
| cars of the country averaged 40 miles per
| day. but owing TO the present congested
| condition and insufficient terminal facili-
| ties and factory sidings they now aver-
| age but 25 miles a day
| I'm the absence OF more trackage and
| increased terminal facilities an increase
| I'm the number of cars increases conges-
! tion and fails TO afford adequate relief
Non-perishable freight is shifted on side
| tracks to make room for that which is
more important This delayed freight
| however is owned by someone. and some
! ones money is thus tied up. The pro-
ducer has sold IL. though il has not reach
| ed the consumer 1t is represented some
| where by borrowed money and the delay
| In shipment extends the loan. The same
Is true OF all material on it's way to fac
| tories
Cooperation between the commercial
banks OF the country. the secretary says.
is impossible. because the Sherman anti
trust law forbids IT,
Instead he says. I'VE have approxi-
mately 20,000 institutions engaged I'm COM
mercial banking, each a law unto itself.
so long as IL does not violate statutory
requirements with respect to investments
and reserve. As a natural and unavoida-
! bic result no combined effort is made In
midsummer to provide ample reserve for
the strain inevitable upon the return Of
business activity incident to the autumn
and winter months.
Under our present system the only nos
sible contraction during the summer. and
the only possible provision for the fall. is
accomplished by the secretary OF the
treasury Withdrawing government de-
posits from the banks when these funds