Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-01-01
Secretary Shaw Sees Some Diff
Guilty in Caring For Pros.
perity in Sight
NO CLOUDS NOW VISIBLE
Government So We'll Fixed Financially
That Debt. Not Duo for Months
Could Be Paid off-Effect of Car
shortase-co- operation Of CONNER
ciaI Banks.

OCCdSlOH IOt dIdLuls SuA OhAS U''-N-SNS
need be lest we fail of facilities to prop
erly garner, store, transport and mar
ket our multiplied blessings. Let ev-
cry man be Of good cheer and try to be
conservative in everything except
thankfulness.'
Secretary Shaw thus concludes re-
sumo Of the years financial record,
which he says has been prepared in re-
Spouse to multiplied requests. In
round numbers he places the receipts
for the calendar year 1905 at $625, 000.-
600 and the expenditures at $566,000, 900
or an excess Of receipts over expendi-
lures of s59,0O0,0 00.> AS there has been
no change in the tariff laws relating to
internal revenue, Secretary Shaw says
the large increase in receipts Is due
solely to the extraordinary trade ac-
tivity,s
Discussing the finances Of the gov
eminent for the six months Of the pres
ent fiscal year just closed, the secretary
says that the books Of the treasury
show surplus receipts over expendi-
lures of $25,o00,0O0 as compared with
deficit Of $S.000,00O for the correspond
ing months Of the previous fiscal year.
The total cash in the general fund is
1856, 00O,O 900, as against $242,000,000 a
year ago. Against this cash there are
liabilities at the present time of $13,-
900, 900 greater than at the same time
last year. The available cash balance
has increased during the year $101.-
100000.
With the general fund standing at
$685., 100000, Secretary Shaw remarks
that the bonds maturing July 1, 1907,
can be paid, If 1t shall be deemed wise,
and still leave a working balance of
more than $120,O00,000. If the owners
would accept the money, he says, the
bonds could be paid now.
During the last twelve months the
secretary continues, the money In ac-
tual circulation, exclusive of the
amount in the treasury vaults, has in
creased more than $200,000,000. OF this
increase, s145, 100000 is available for
bank reserve, and $60,000,0O0 is in ma
tional banks circulation. This" he
says, seems to be a complete answer
to the oft repeated and ill-advised
criticism that the independent treasury
system necessarily results in contrac-
ton when money is most needed"
Our unprecedented Prosperity.
He says the manifest and admitted
shortage has been caused by the UNI
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 everything than
any other people in the world, and
when prosperous they import largely
AS to the currency system reformists
Secretary Shaw says that in his judg-
ment it permits adequate expansion
but that its weakness is it's failure to
produce contraction. The volume OF
money, he contends, does not respond
to the volume of our business. The
annual increase, he adds, may be suffi-
cient, but there is 30 annual contrac-
ton during the dull summer months
"Only the unthinking and ill-advis-
ed" he says, Charge the admitted
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 likely as much money is
tied up in options and margins in real
estate as in options, and margins on
stocks and bonds.
''It 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 loudest in denunciation
It i'll becomes the real estate specula-
tor to decry every other manifestation
Of desire to get rich quick The epi-
tibet black banded between pot and
kettle is never Instructive, and just
now 1t is not even entertaining"
Effect Of Car Shortage.
The effect Of the present car short
age on the money market also is al
luded to. The secretary says:
"a larger crop Of cotton than usual
and an unprecedented yield of cereals
fruits, and every other agricultural
product has filed granaries and ware
houses to overfiowing and congested
every important railway. few years
ago the freight cars of the country
averaged forty miles per day. but owing
TO the present congested condition and
insufficient terminal facilities and fac
tory sidings they now average but
twenty-five miles day.
"In the absence of more trackage and
Increased terminal facilities an In
crease in the number Of cars increases
congestion and fails to afford adequate
relief. Nom perishable freight is shift
ed on sidetracks to make room for that
which is more important. This delayed
freight, however, is owned by some one
and some ones money is thus tied up.
The producer has sold it, tho it has not
reached the consumer. 1t is represent
ed somewhere by borrowed money,
and the delayed shipments extend the
loan. The same is true of all material
on its way to factories"
Cooperation and Banks.
Cooperation between the commercial
banks of the country. the secretary
says. to be impossible because the
Sherman antitrust law forbids it.
Instead" he says, I'VE have approx
mately 10000 institutions engaged in
commercial banking. each law unto
7 itself so long as it does not violate
statutory requirements with respect to
investments and reserve.
As natural and unavoidable result,
ka7Qrt is nfde IN mid