New-York tribune., 1908-01-30

OF public money, aside from certain n than per
cent OF the national banking capital St & tne n ali
The United States deposits IN ona o or more than
II per cent of national banking Gapahi herefore re
@ d Of the f ssaang the h public funds which
In the I sPrsng ait with any large
proporton of public moneys, but II any uih Iass
tonal discrimination was shown were Of the
country It may be inappropriate a daT he be no no
say in this na n this so pon that have de-
posted dollar the puec moneys d1bsr IN spe basis
than that Of the public interest These funds nave @
been deposited and distributed wathous of
indviduas no city or state or section has d1 re-
ceiyed other than at that s falr anted aed
While the Secretary Of the Treasury y 1e fe stua fU-
ton to increase deposits largely In the bankS al e Gr
Nsw York City en the Fad sppSsGed was Smaller
than the proportion in certain o'nef oi'e Civ
One of the reasons for making deposits IN iarsd e
amounts in the national banks OF New kast a effec-
tiyeuess of such deposits In hnanciai ceiltte e.
whence they would find their way tho 10 a Fact that
these banks were able more promptly 10 opIiiti i
ss ,e P0moI oo keen to assign deposits to banks which
were not in possession of bonds could not OBTAIN
fo IaGga nancaI institutions not engaged di
rectly in the business of note issue OF t'ie pay ~
The department has exercised great caution in the
acceptance Of bonds as security for deposs, ald
which were not legal saviugs bank bonds they are are
marketable at price equal to- ian anu han5 10 5eg II Vas
deemed wise however, they Were not classeo as
naneIy "a per cent of their market value. In
every case the department has required an ample
margin and has every confidence in the souhoheSS
of the security It has accepted
CHANGES IN THE PUBLIC DEBT.
The net result of the Treasury operations under De,
the present administration Of the department has
debt the interest charges upon it, in spite OF me
Issues ~ 2 Of sesqes on & as eened from m
$500 o9350 on March l. 1907; to Sss2lo9oo on ,+ De
s. 500 900 less than in March last. The fact that
there has been net decrease IN the prlnclpal OF
a considerable part of the per cent funded loan of
1897, which by its terms was redeemable al me
It was felt to be the duty the department, even
at the most acute stage Of the crisis. TO direct us
the Treasury in the immediate future. Among
these obligations Is the option OF paying such OF the
cent bonds issued in 1898 for the purposes OF
the Spanish war as have not been already con, N,
these cent bonds outstanding June 80, lp1,
$50 $50, and opportunity has since been
1o at % the date of this report The
bonds were payable at the option of the unlteo
States ten years the date of issue, and under
this provision become payable after August l. 1893
The same choice of methods OF dealing with them
lies before the department as lay before it in re-
spect TO the maturing per cent bonds OF NJ
first, redemption in cash; second. continuance al
lower OF interest ttle pleasure OF tie
States: and third refunding under the provisions
of the act of March a. 190o into cent consols
of 1890.
POLICY OF DEPARTMENT
II new legislation does not relieve the Secretary
of the Treasury from the obligation which mas
tacitIy arisen under existing fiscal and cur
rency system TO exercise q guardianship over 1he
money market then still another factor must oe
kept constantly in view This is the ab1hty 10 re.
lieve the money market by making deposits of
public funds during the autumn, the season WTlen
the demand for money is usually greatest Inc De
partment considers it of the highest degree OF ma
portance under the existing system TO reduce Inc
present volume of deposits OF public moneys IN the
banks for this purpose alone, even apart from Ihe
accumulation the Treasury of adequate funds Tor
the redemption of the per cent loan and for cover
ing ordinary deficits. There is little doubt that the
amount of public money deposited in the banks as
result of the two issues of new securities VIII De
required for the other OF these purposes
Panama Canal, as already set forth, have already
anticipated the sale of the bonds The proceeds OF
case for their redemption on NOVEMBER o. IsVo'
which will undoubtedly be made unless SONS
emergency of an unusual character sioulo PIeFeIi'
In every measure taken the oecreaaIy @ E ist % o,It
he was bound, under our existing hscal ana none
tary system TO have regard mo- nor 80 tps,r eject
upon the financial condition OF the country. l ne
present head of the department mas not W ~
fbiS obligation willingly, and would be gdQ 10 oe
relieved OF il at least part by suitable legisa-
ton under fiscal and monetary system @ WHICH
results in large accUmuiauors OF acIus,i @ T 1ns
in the Treasury at times When II may DC nga'
needed IN the markets and Whlch trIo[os lade d
Cuate means of adapting the circulation TO the ue
mands of business it would, in bis opinion be, be a
narrow view of his functions which should @ @h1 NM
him 10 keeping his own paance sheet
While ignoring the effect of Treasury operations
upon the condition of the country II recent events Is
should lead intelligent Legislation tenulns emu, ~
ad9pt the movement of currency more nearly auto
matically TO the requrements OF ~. sere+a
ard would greatly diminish the sense OF Tespons-
bifty which must weigh neaVlly h upon @ nH hose Of
pant of the office unner conoiuoiS S0'i dc '''09 -
cr1SlS.