New-York tribune., 1908-06-02
BIG TREASURY DEFICIT.
City Bank Estimates Total for Year
UW Be So 900 900.

The June circular OF the National City Bank dis
cusses the currency legislation and the treas
ury deficit. The current fiscal year, II says Win
single exception of 1899, bids fair to produce the
largest annual deficiency since the Civil war AT
the average of daily deficiencies during May, the
thirty remaining days of the fiscal year VIII prihs
the total deficit to approximately s'o""'o" vi
nearly the amount of the surplus for lsc' ana com
pairing with the 1899 deficit of SSsoeoooo Ihe c'reu-
lar continues:
1907 have receipts been Inadequate. From 1900
to 1894 practically an unbroken period OF sue Sun
only two small annual deficits of about a mliIH nI1
dedeIeneies rsneine from 900 to $50 600 600
In the period from s9e to 1903 there o0 We're oo sur
i9O4 the deficit 100000 and in 1905 there
was one Of sS 600 1o- In 1906 there W was a o goo
Reviewing the record of receipts and expenditures S
fdaen fET 9 and ad Change from
noSn om to 1884, IS to ss
preceded by three years of gTaduay aeSs frn
Which viii become available after
nT me in are onr knEWn hStory 70 ThsI will exceed billion
which win be the occasion for probapH 1 e
monthly deficiencies for considsr,ante i,a time -
In forecasting the policy of the Treasury De-
partment under the changed conditions caused oy
the currency law the circular says:
The calls May and g. aggregating Sl.env, Sl.eS,
should have raised the working cash to sonetnlls
like SS5,cO1 800 s9O,00C00. AS matter OF tac!.
when all the transfers under these calls nave peen
taken up in Treasury accounts the wo1Rlns p pai-
ance will only amount to about SIo,uD"' thuS
showing the depletion in cash during the month oc
caSioned by deficient revenues The depnsltory,
banks still have roundly sl5oooo 600 In view OF f1
this large holding and of the constant decline IN
government receipts, we'll as the increase IN IN
expenditures it seems quite certain that H
calls will be made. The opportune time, or course
for the Secretary of the Treasury to make addl-
tional demands the banks will be in the imme-
date future Even when the times are normal
June and July usually bring easy money condi-
tions Crop moving and currency shipments to the
interior usually do appear earlier than August
The currency bill is likely to have bearing
upon the attitude of the Treasury toward the
money markets. In all probability since emergency
hanknote issues have been provided for the Ireas-
ury will not feel under the necessity of making
SC great provision for meeting the fall str1ngencE
as formerly There will also doubt, be wider
latitude in dealing with many of the financial PROB
lens of the department. The ability of the govern
ment to pay off its maturing loans or to negotiate
new ones can be determined without close
figuring as to cash available Nevertheless, the
possibility of tariff revision at the next session OF
Congress. combined with the necessity OF Keeping
the Treasury in funds TO meet the large appropria-
tons of the session just closed. will suggest eau
tion in the of deciding upon the course 10
be followed with reference to maturing Obligations