The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-01-01
MONEY PILES UP.
Available Cash Balance in the
U. S. Treasury.
Has Increased $lOl ,OOO,O in
the Past Year.
DUE TO PROSPERITY.
Secretary Shaw Offers Ex-
PLANTATION of Car Shortage.
And the Apparent Lack of Money
i'm Trade Channels.

occasion for alarm. Our only anxiety
need be lest we fail properly to garner,
store, transport and market our multi
piled blessings. Let every man be of
good cheer and try to be conservative
in everything except thankfulness."
Secretary Shaw thus concludes a res
ume of the years financial record. In
round numbers, he places the receipts
for the calendar year 1906 at $685.,
100000 and the expenditures at $3.50,
100000. or an excess of receipts over
expenditures of s59.000.000. Secretary
Shaw says the large increase in re-
ceipts is due solely to the extraordin-
| ary trade activity.
Discussing the finances of the gov
ernment for the six months of the
present fiscal year just closed, the sec
retary says the books of the treasury
show surplus receipts over expendi-
lures of $25, 100000 as compared with
deficit of sS,OO0.0OO for the cores
ponding months of the previous fiscal
year.
The cash in the treasury is $780,
100000, as compared with $171. .0OO.-
600 year ago, an increase of s19,-
100000. The cash in national bank
repositories is $159,OoO.OOO. as COM
pared with $65,000,000 a year ago, an
increase of $94. 100000, and the total
| cash in the general fund is 1856, 6,00O,-
0O0 as against $242,00O.000 a year
ago. Against this cash there are la
Utilities at the present time $13,0O0,0OO
greater than at the same time last
year. The available cash balance has
increased during the year 101,OOO,000.
With the general fund standing at
$237.0O0, 900. Secretary Shaw remarks
that the bonds maturing July 1, 1907,
can be paid, if it shall be deemed wise.
and still leave a working balance of
more than $12O,OOO,0OO
During the last twelve months. the
secretary continues, the money in act
ual circulation, exclusive of the
amount in the treasury vaults. has in
/ creased more than $200.006s0oa. OF
this increase s145,09o,00O is available
I for bank reserve and $4,000, 900 is in
national bank circulation.
This. he says, seems to be
complete answer to the oft repeated
I and ill-advised criticism that the in
dependent treasury system necessa rily
results in contraction when money is
most needed"
He says the manifest and admitted
shortage has been caused by the un-
precedented prosperity in this country,
and reasonable prosperity 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. and when prosperous they inn
port very largely. This. he asserts,
naturally encourages industry every
where, and unusual business activity
calls for al unusual amount of actual
money and of credits based on actual
money
AS to the currency system, Secre-
tary Shaw says that in his judgment
it permits adequate expansion but
that its weakness is it's failure to pro-
duce contraction. The volume of
money, he contends, does not respond
to the volume of our business. The
annual increase, he adds, may be suf-
ficient, but there is no annual contrac-
ton during the dull summer months.
"Only the unthinking and iH-ad-
stringency solely or largely to stock
and bond speculation.
Just now speculation in real estate
is at high tide and the opinion is ex-
pressed that very likely as much mon
ey is tied up in options and margins in
real estate as in options and margins
on stocks and bonds
at is idle to complain of the newt
able,'' he continues. THE spirit of
speculation is among us and. like the
drink habit, those most addicted are
frequently the. 1oudest in denuncia-
ton. 1t i'll becomes the real estate
speculator to decry every other man
Hesitation of desire to get rich quick.
The epithet, black banded between
pot and kettle, is never instructive, and
lust now 1t is not even entertaining.
The effect of the present car short
age on the money market is also al
luded to.
The secretary says: "a larger crop
than usual and an unprecedented yield
of cereals fruits and every other agri-
cultural product has filled granarieS
and warehouses to oyerfowing and
congested every important railway A
few wears ago the freight cars of the
country averaged forty miles day,
but. owing to the present congested
condition and insufficient terminal ia
cilities and factory sidings, they now
average only twenty-five miles a day.
This delayed freight is owned by some
one. and some ones money is thus tied
up
Cooperation between the CONNER
cial banks of the country the secretary
saws to be impossible because the
Sherman antitrust law forbids it.
: '-Instead" he says, 1--WE have ap-
proximately 10000 institutions en-
Gagged in commercial banking. each
law unto itself as long as 1t does not
violate statutory requirements with re-
spect to investments and reserve. AS
natural and unavoidable result no
combined effort is made in midsummer
to provide ample reserve for the strain
fnevita BILE on the return of business ac-
tiyity incident to the fall and winter
months.
sTJnder our present system the only
possible contraction during the sum-
ner. and the only possible provision
for the fall. is made by the secretary
~ the treasury withdrawing govern
ment deposits from the banks when
these funds are not needed and re-
storing them to the channels of ira de
as the needs of business require. By
keeping taut rein, Wild speculations