Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-02
FOUR PER CENT BONDS
Secretary CorteIyou Orders
Cessation of Refund.
PRESCRIBED LIMIT REACHED
Total Amount to Mature July l
Placed at SAL, 185,750.
WITHDRAWALS FROM BANKS
Designed to Meet Possible Stringency
Next Fall-Total of Interest
Bearing Debt.
PRESCRIBED LIMIT REACHED
WITHDRAWALS FROM BANKS

BY direction Of Secretary Cortelyou the
refunding Of the per cent bonds maturing
in another month has ceased. the limit of
to exchange into per cent bonds having
been reached. The total amount of 4 per
cents refunded Is Sc. 3OS, 900. The amount
purchased and redeemed under recent Of
fers Of the treasury is s25, 262. 900. making
a total Of s75. 272. 600 either exchanged into
per cents or redeemed.
Secretary Shaw last December made an
offer to purchase some Of the bonds, but
only small amount came In under his
offer. Secretary Cortelyou made an offer
in March which was somewhat more gen.
erous than that Of Secretary Shaw, and
there was a better response.
The total amount of the per cents out
standing and to mature July is 81, 1875. $50.
The intention Of Secretary Cortelyou Is to
redeem these at maturity. The treasury is
abundantly able to meet the demand for
money at that time as the government ha
been accommodating money for months.
There Is an available cash balance in the
treasury of $3.50. s&2. An. of which about
$171,OO0, 900 is in national bank depositaries.
In the-treasury proper there is a working
balance Of about So, 100000. The 4 per
cent bonds could be disposed Of it Is de-
clared. without drawing upon the deposit
next week or SO Secretary Cortelyou will
ask national bank depositaries to return to
the treasury $4,000 600 or $50.OCO.0OO OF
funds which were deposited with them with
the understanding that they were to remain
temporarily. The withdrawal of this sum
of money will not Jar the money market.
although 1t may raise the interest rates
for speculation to a higher figure than now.
Ia Purpose in View.
The object of Withdrawing funds from
depositaries will be preparatory. it is stated,
to meeting any stringency in the financial
world this fall. BY having a goodly
amount Of funds in its working balance the
treasury will be prepared to meet any
stringency that may arise.
Unless there are unexpected changes In
conditions between now and this time next
year, the treasury will be prepared to re-
deem the 3 per cent bonds outstanding.
These bonds were issued in 1893 to carry
the Spanish war. 1t is provided that the
government shall have the right to redeem
them at the expiration of ten years, or it
may have the right of extending their
existence ten years longer. This will not
be necessary with a full pocketbook. such
as now exists, and which is not likely to
be depleted to any alarming extent inside
of a year. The total amount of the Span
ish war bonds issued was $685. 792, ego. but
there are now outstanding only $6' 945.CO0.
The total Understanding debt of the
nlleQ states Is at TINS time SSy33t2, 49,,
which will be reduced in another month
by the amount of the per cent bonds to
be redeemed when they mature.
Large Surplus This Year.
The outlook is that the fiscal year which
will close June 30 will show the largest
surplus in five years. At the close of bust
ness yesterday the surplus so far this fiscal
year aggregated $50, lot. 963. 1t is estimated
that the surplus for the present month will
be at least $1O.O0O.OOO. which will give
surplus for the year of s75,OOO.OOO. For the
eleven months of the present fiscal year the
total receipts from all sources have been
SG2. 5D4672 and the total expenditures
$l31 ,sl43 100. For the eleven months of the
last fiscal year the total receipts were
$3.50 .547 633, a surplus of something over
$6.OGO,GO.
There has been a tremendous increase In
receipts this fiscal year over last year.
while the expenditures have not been many
millions higher. For the eleven months of
the present fiscal year the income from
customs was SsO4.917 67S as compared
with s27+. 39S,147 in the same period of the
last fiscal year. From internal revenue
the receipts were $245, 796. $50 this year and
$226, 4J6. 4S0 last year. The miscellaneous
receipts likewise showed a large increase
For the month of May the total re-
ceipts were 81. 4SS.O12 and the total ex-
penditures S912.SOO. as against 81, $50, O23
and $45.S4S.211 respectively, for the same
month of the last fiscal year.