The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-01
Secretary Reviews the Years
Financial Record
SURPLUS is $59,OOO,OOO
Says Our Only Anxiety Is Lest We
Fail of Facilities to Garner and
Market Our Multiplied
Blessings.

Washington, December s1.-"1nere is
no occasion for alarm. Our only anxiety
need be lest we fail of facilities properly
te garner store, transport and market
four multiplied blessings. Let every man
be of good cheer, and try to be conserva-
tive in everything except thanlSfulness.
| aThus Secretary Shaw concluded a re-
uime of the years financial record, which
n he says has been prepared in response to
Multiplied requests. In round numbers,
1e places the receipts for the calendar
sear 1906 at $625 100000 and the expendl-
lures at s566, 100000, or an excess of re-
ceipts over expenditures of $50 100000.
! AS there has been no change in the tar
yiff laws or the laws relating TO internal
revenue, Secretary Shaw says the large
increase in receipts is due solely to the
extraordinary trade activity. The total
expenditures, however. for 1906, as CON-
d cared with 1905. he says, shows decrease
i { s5.oOO,oOO.
4 Surplus Receipts 25,o0o,0oo
Discussing the finances of the govern
,aent for the six months of the present
hscal year just closed, the secretary says
that the books of the treasury show sur
plus receipts over expenditures of $25,o0o,-
l coo as compared with deficit of $S,O0OOG
for the corresponding months OF the pre-
5 vious fiscal year. The cash in the treas
ury is $19O000000 as compared with $l7l, ,0O0-
000 a year ago, increase of s19,Ooo.0Oo.
J The cash in national bank depositaries
( = $l59, 900 900 as compared with $65,000,o00
81, ear ago, an increase of $94000,000 and the
I ,tal cash in the general fund is $3o6,0O0,-
100 as against S242, 100000 year ago,
gainst this cash there are liabilities at
ne present time of $13,o00000 greater than
L the same time last year.
1.-THE available cash balance has in
Creased during the year $40, 100000.
4 Can Pay of Bonds.
With the scqerisi -und standing al S2S71,
10000 Secretary Shaw remarks that the
foonds maturing July l, 1907 can be paid
Aif 1t shall be deemed wise and still leave
Ia working balance of more than $l2O,0OO,-
: 700.
) If the owners would accept the money,
he says, the bonds could be paid now,
but he doubts whether any considerable
l umber of the holders would accept pay
{ tent at this time, because they are of the
\ lass who care for little else than certain
4 Y of securities, and exemption from tax
= alton.
Mr.. Shaw says he has thought best,
however, to leave to his successor the
discretion of paying these bonds at ma
turity or of refunding such portion as he
nay deem appropriate. During the last
uwelve months the secretary continued,
the money in circulation, exclusive of the
amount in the treasury vaults, has in
creased more than $200, 600. 900. or this
increase s1450e0.000 is available for bank
reserve and $4,000, 600 is in national bank
circulation.
.This," he says, seems to be COM
plete answer to the oft repeated criti-
cism that the independent treasury sys-
tenn necessarily results in contraction
when money is .most needed"
\ Strngency Is Worldwide.
He maintains therefore that the exist
ling money stringency worldwide in it's
jextent, is traceable in no respect to the
independent treasury system of the Uni
fed States. He says the manifest and
admitted shortage has been caused by
lthe unprecedented prosperity in this
( country, and reasonable prosperity every
where. The people of the United States,
he declares, consume per capita more
l food, more of everything than any one
1 other people in the world and when
p, osperous they import very largely This
he asserts naturally encourages industry
everywhere and unusual business activity
calls for an unusual amount of active
money.
AS to currency reform, Secretary Shaw
says that in his judgment it permits
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 trade
The annual increase, he adds, may be suf-
fcient, but there is no annual contraction
during the dull summer months.
"Only the unthinking and ill-advised ="
he says. charge the stringency to stock
and bond speculation.
Just now speculation in real estate is
at high tide and the opinion is expressed
that very likely much money is
tied up in options and margins in real
estate, as in options and margins on
stocks, and bonds"
The effect of the present car shortage
on the money market is also alluded to.
The secretary says:
AIludes to Car Shortage.
"A larger crop of cotton than usual
and unprecedented yield of cereals, fruits
and every other agricultural product has
gested every important railroad. A few
years ago freight cars averaged forty
miles per day, but they now average but
twenty-five miles a day The delayed
freight Is represented somewhere by bor-
rowed money and the delayed shipments
r.. extends the loans.''
"Co-operation between the commercial
banks of the country" the secretary says,
''is impossible because the Sherman anti
trust law forbade it, Instead" he SAYS
1--WE have approximately 10000 commercial
banks, each law until itself so long
as it does not violate statutory require
ments with respect to investments and
reserve. AS natural ans unavoidable
result, no combined effort is made in mid
summer to provide ample reserve for the
strain inevitable upon the return of busi-
ness activity in the fall and winter. I'm
der our present system the only possible
contraction during the summer, and the
only possible provision for the fall is ac-
complished by the Secretary of the Treas
ury withdrawing government deposits
from the banks when these funds are not
needed, and restoring them as the needs
of business require. BY keeping a tight
rein wild speculation may be prevented
and in most Instances a resultant crash
averted.
Banks Not the Only Sufferers.
ssITnfortunately the banks are not the