The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1908-05-20
THE GOVERNMENT
CALLS IN MONEY
A Total Deficit of S51 100000 For the
Fiscal Year Thus
Far.
100000 DEPOSITS CALLED.
Banking Interests Indifferent If Not
Favorable To Reduction of
Accommodations.

NEW YORK May 2.-Bradstreet
of this date contains the following edi-
torial comments on the financial situa-
ton:
With the governments expenditures
exceeding its revenue collections, as is
the case at present-the total deficit
for the fiscal year thus far being some
$51 500, 000-it was regarded as newt
able that a further call should be made
on the depository banks for the return
of another instalment of the Treasury
deposits, which now amount to APP
proximately $19O,OOO,OOO compared
with about $27O, 100000 at the height OF
the panic last autumn. 1t is also point
ed out that the Treasury is bound to
strengthen its position before August
! 1, when the 1853, 945, 900 of 8 per cent
Spanish war bonds of 1898 become re-
deemable, although they are not due
until 1918. In keeping with the general
| expectation, the Secretary of the Treas
ury therefore issued a call on last
Monday for $45,00O,0O0 of the govern
ment deposits held by national banks,
to be paid in two installments of $20,-
100000 on or before May and $25, 000,-
| 600 on or before May %. it being stat
ed that, though the amount required to
be repaid by individual banks would be
based on a percentage of the total, due
regard would be paid to the cases
IN1rb 10
the drafts of the governments disburs-
! ing agents. 1t has already been point
ed out that in advance of formal ac-
ton the money markets of the country
anticipated it, and on account of the
heavy accumulations of idle funds, are
in such a position that the reduction
of the United States deposits makes no
particular difference 20 the banks. 1t
may be noted, in fact, that during the
present week banks at New York have
already turned into the sub-Treasury
at that city some $3,0OO,OO0 of the gov
eminent funds which mad been intrust-
} ed to them.
Further illustration of the indiffer-
ence, not to say favor, with which
| banking interests regard a reduction
of the great accumulation of money in
the banks is furnished by the failure of
continued gold exports during the pres
ent week, supplementing the above
mentioned call on the depositary banks
to materially influence the loan mar
kets of the country. At New York in
particular, while, as is noted in detail
elsewhere in this issue, there was a
slight quickening of the demand for
longtime loans, very little change oC-
Cured in the rates for either call or
time money. As regards the gold out
flow, the situation would still seem to
warrant the belief that further ship
ments will be made from New York to
Paris, and perhaps to Berlin, in add
ton to the ST. 10000 which up to this
time makes up the total of the move
ment. While the Bank of England IS
apparently in a stronger position, it is
evident that Paris is still inclined to
draw specie, as is shown by the decline
in the rate of exchange on London at
the French capital to rs francs II cen
times. At the latter figures triangular
operations in exchange and gold be-
tween London, Paris and New York
are feasible, involving the transfer OF
specie from the last-named center to
the French capital, even though the
sight sterling rate at New York has re-
coded to around 4.S7. One feature OF
the situation which may have an lntiu-
ence in at least retarding shipments OF
gold from this country or reducing the
aggregate amount is the considerable
subscriptions of foreign interests to
various recent American bond issues
which fact is reflected by the some
what better supply of bills of exchange
noted in the New York market this
week.
IADAN GEELyC tn