Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-01-01
1906 A Season Of Great
Commercial Activity.
Rec ejpts s59,000,00O Ahead
Of All Expenditures.
Sec. Shaw Issues interesting State.
ment Of Country's Business.

Washington, Dec. 31-"There is no
occasion for alarm. Our only anxiety
need be lest we fail Of facilities to
properly garner. store transport and
market our multiplied blessings. Let
every man be of good cheer and try to
be conservative in everything, except
thankfulness.
Secretary Shaw thus concludes a re-
sumo of the years financial record.
which he says has been prepared in re-
spOnsc 10 multiplied requests. In round
numbers he places the receipts for the
calendar year 1906, at $625. 100000 and
the expenditures at $5G6 100000. or an
excess of receipts over the expenditures
of $4,000 900. AS there has been no
change in the tariff laws or the laws
relating to internal revenues, Secretary
Shaw says the large increase in re-
ceipts is due solely to the extraOrdi-
nary trade activity. The total expen-
diture, however. for 1906. as compared
with 1865. he says, shows a decrease of
but $J,000.000.
Discussing the finances of the gov
ernment for the six months of the pres
ent fiscal year just closed. the secrc-
tary says that the books of the treas
ury show surplus receipts over expen-
ditures Of s25000000. as compared with
deficit of sS.O0O.000 for the cores
pording months of the previous fiscal
year The cash in the treasury is $780,
600. 400, as compared with $l11 .00O,00o a
year ago. an increase of s19,000.000. The
cash in national bank repositories is
$50 900, 600, as compared with $65. OOOOOo
year ago, an increase of s94.OOO.Oo0.
and the total cash in the general fund
Is $3.50 COO, 600. as against $2i2 100000 a
wear acO. Against this cash there are
liabilities at the present time of Sl3.-
oO9. N0n greater than at the same time
last year. The available cash balance
has increased during the year Sl0l.-
GOO. 600. with the general fund standing
at s2G1 zoo, 600, Secretary Shaw remarks
that the bonds maturing July ], 1901.
can he paid. if it shall he deemed wise
and still leave working balance OF
more than S120 100000.
During the last II months the secre-
tary continues the money in actual
circulation. exclusive of the amount in
the treasury vaults. has increased over
5000 900. 600 OF this increase, Sl4j,00O.000
Is available for bank reserve and 500
600 GOO is in national bank circulation
This" he says, seems to he Il conf
plotc answer to the oft-repeated ana
i,l-adyised criticism that the independ-
cnt treasury system necessarily results
in contraction when money is most
needed
He maintains that existing money
string,ncy, world-wid in its extent, IS
Il IN,
gree to the independent treasury sys-
TEN of the United States. He says the
manifest and admitted shortage has
been caused by the unprecedented
prosperity in this country and reason
able prosperity everywhere. The peo-
pie Of the United States, he declares.
consume per capata. more food. more
clothes. more of everything than any
other people in the world, and when
prosperous they import very largely,
This, he asserts. naturally encourages
industry everywhere and unusual bus
mess activity calls fer an unusual
amount of actual money and of credits
based on actual money.
As to the currency system oi III"
United States, Secretary Shaw says
that in his Judgement II permits adc-
quatc expansion. hut that its weakness
is its failure to produce contraction.
The annual increase. he adds. may DC
sufficient. hut there Is no annual con-
traction during the dull summer
months.
only the unthinking and ill-advis-
Cd he says. charge the admitted
strinscncy solely or largely to stock and
bond speculation
Just now speculation in real estate
is ut high tide and the opinion is ex-
pressed that very likely as much money
Is tied up in options and margins IN
real estate as in options and margins
on stocks and bonds.
1T is idle to complain Of the in
evitable" he continues THE spirit of
speculation is among US and like the
. drink habit. those most addicted are
frequently the loudcst in Pronunciation.
IL Ill becomes the real estate specula-
Tor TO decry every other manifestation
Oh the desire to get rich quick. The
epithet Black handed between pot and
Kettle is never instructive and just now
II is not even entertainment
Inc effect of the present car short
age on the money market, also is al
iuded to. The secretary says:
"A larger crop of cottoni than usual
ana an unprecedented Weld of cereals.
fruits and every agricultural product
mas fliled grainares and warehouses to
oVeriiowing and congestedI every i'm
portant railway
In the absence of more trackage
ana increased terminal facilities and
increase in the number of cars in
ereases congestion and failS to afford
tuequate relief. -perishalb BILE freight
- shifted on side tracks to make room
Continued on Page Tfwo.)