Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-01-01
NATION ON FIRM
FINANCIAL BASIS
Secretary Shaw Says There
Is no Occasion For
Alarm

occasion for alarm. Our anxiety need
be lest we fail in facilities properly to
garner, store, transport and meet our
multiplied blessings. Let every man
be of good cheer and try to be con-
servatve in everything except thank
fulnesS."
Secretary Shaw concludes a resume
of his financial record, which he says
has been prepared in response to null
tiplated questions. In round numbers
he places the treasury receipts for the
calendar year 1906 at 1925, 900 900 and |
the expenditures at $3.50, 1000, 0UU or an |
excess of receipts over expenditures of |
$50, O00. 900. There has been no change |
in the tariff law or the laws relating !
to internal revenue, Secretary Shaw |
says, the large increase in receipts be- |
ing due to extraordinary trade acttv- |
ity. The total expenditures, however,
for 1906 as compared with 1905, he says,
show decrease of only $50O0,0O0.
Receipts Eyceed Expenditures.
| Discussing the finances OF the gov
eminent for six months past of the fis-
| cal year just closed. the secretary says
the books OF the treasury show sur
plus receipts over expenditures Of $25,-
! 900 900 as compared with deficit OK
| So, O0O. 900 for the corresponding months
Of the previous fiscal year. The cash
in the treasury Is $190.OOO,O00 as COM
pared with 171.O00000 a year ago, an
Increase of $19.OOO.OO0. The cash in
national bank repositories is $159,OUv.-
900 as compared with $65,0OU,O0. year
ago, an increase of $94, 900. 900, and the
total cash in the general fund is $685.
900, 900 as against $242. 100000 a year ago.
Against this cash there are liabilities
at the present time Of $13. 100000 greater
4 than at the same time last year. The
available cash increased during the year
4 nj <rVrpJ
standing at $237 900, 900 Secretar Shaw
remarks that the bonds maturing July
/. 1907. can be paid II shall be deemed
wise and still leave q working balance
of more than $120, 900.
During the last twelve months. the
secretary continues, the money n actual
circulation. exclusive Of the amount
more than $2Ov,vvv,0O0. OF this $145,-
O00, 900 is available as bank reserves
and $50, 100000 is In national bank cir
culation.
This" he says, seems to be =
complete answer to the oft repeated
and ill-advised criticism that the In
dependent treasury system necessarily
most needed
United States Not to Blame.
!. He maintains, therefore. that the ex-
, listing money stringency. world wide 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 manifest and admitted
. shortage has been caused b.. the un.
: precedented prosperity In this country
and reasonable prosperity everywhere
The people OF the United States, he de.
clares, consume per capita more food
more clothing. more of everything thar
: any other people Of the world, and
when prosperous, they import largely.
e This" he asserts, naturally en-
courages industry everywhere and un
usual business activity calls for an un
usual amount Of money"
. AS to the currency system reform
: suggested. Secretary Shaw says that II
: his judgment 1t permits adequate ex
2 pansion. but that its weakness Is III
i failure to produce contraction. TIT
!. volume OF money, he contends, does no
!. respond to the volume of our bus
9 mess.
!. "Only the unthinking and ill-advis
I. ed" he says, charge the admitted
% stringency to stock and bond specula
o tion." Just now speculation in rea
!: state is at high tide and the opinion
10 is expressed that very likely as mucl
i money is tied up In options and mar
9. gins on real estate as In options an,
margins on stocks and bonds.
Spirit Of Speculation.
TT is idle to complain OF the inevi
table, he continues. The spirit 9
speculation Is among US, and like tn
e drink habit, those most addicted ar
frequently the loudest in its de
nunciation. It i'll becomes tn rel
estate speculator to decry every othe
Is manifestation OF the desire to &
D rich.
l. "The epithet. black. banded betwee
4, pot and kettle IL never Instructive, IN
Of Just now 1t IL not even entertaining.
v. The effect OF the present car short
de age on the money market IL also o
at luded to. The secretary says:
u. "A larger crop OF cotton than usus
% and an unprecedented yield OF cereal
CO fruits and every other agricultural PR
z: duct has filled granaries and war;
m houses to overflowing and congeste
VI. every important railroad. "A few yea
o. ago the freight cars OF the counts
averaged 40 miles q day. but. owing
the present congested condition ar
- insufficient terminal facilities and IA
tory sidings, they now move only
.. miles a day.. This delayed freight
owned by some one and some one
J. money Is thus tied up"
Cooperation between the CONNIE
cial banks Of the country the secretal
- said to be impossible because the She
90 | uA0u ouAA~SA oos 40" AOA0AAS 80
Ike Critieises Banks.
ais Instead" he says. I'VE have =
:. proximately twenty thousand inst
w. buttons engaged In commercial ban
he ing, each q law unto itself as long
~ 1t does not violate the statutory r
quirements with respect to investmer
no and reserves. As q natural and U
n. avoidable result no combined effort
made in midsummer to provide ami
20 reserves for the strain inevitable
Is the return of business activity incide
to the fall and winter months. Und
our present system the only possil
70 contraction during the summer. a
ON. the only possible provision for the II
Is effected by the secretary OF
treasury Withdrawing government
la posts from the banks when tbs
"a. funds are not needed and restori
them to the channels OF trade az
OF needs Of business require. BY keepi
nj. q taut rein wild speculation may )