The sun., 1908-12-10
CORYELYOU FEARS DEFICITS
ron THIS YEAR AND NEXT UN-
LESS CONGRESS IS CAUTIOUS.
- ms Annual Report the Secretary Asks,
TaFiR ReViSers 10 Consider CSndi'
4 lion OF Treasury Movements
Z DiaoussedA Currency Reform Plan.

DISoussedA currency Reform Plan.
WARRINGTON. Dec. 9.-Secretary OF
the Treasury George B. Cortelyou's an
pual report TO Congress shows a decrease
IN Treasury receipts for the fiscal year
anded June 80. At tho end of the
YEAR disbursements exceeded receipts
bv S5s.o7o, POI, as compared with sur
Mus OF Ss4, $50 at the end OF the
1907 fiscal year. The heaviest item OF
decrease was in customs. which fell on
y $40 100, 2s2, and the next greatest in in-
ternal revenue, a difference Of Sl7.s55e40.
d Total receipts for the year. exclusive OF
publlc debt, were S792 ,6O4, ,7S1. as compared
With as48, ,725, $3.50 in 1907, and the disburse-
nneAts $3.50. .874. .9S3, as against $Td2, fsS753.
Mr.. Corteyou submits estimates OF
receipts and expenses for the fiscal year
1900 and 1910, but regrets the necessity
Of submitting them, for he says they are
fer the most part problematcal
II have no means of knowing what
will be the amount of appropriations at
I the coming session." he explains what
viii be the effect of the proposed re-
vision, OF the tariff upon the revenue
derived from imports. nor what will be
the ultimate effect upon internal revenue
collections OF certain moral and economic
movements which seriously affect these
sources of revenue. IL is little more than
EuessworlS. therefore. TO give estimates
of this kind. They are submitted in this
report with these explicit qualifications
The estimates for the current year place
the revenues at $7sS. 79B,956 and the
expcrditures at $902, 798. .956, or deficit
of ALA 600 Ooo For 1910 the revenues are
estimated at $s25, 5,s4i,7l2 and the ex-
penditures at S98s. .Ss7.50s, deficit OF
siis, ,04o. 7e8.
The most important recommendation
made by the Secretary relates to move
ments Of gold between the important
trade centres OF the work.. He recalls
the fact that in November and December,
1907. and January last there were i'm
ports of gold TO the amount OF Slls.s22, $50.
and in April, May and June gold exports
of ste,85s,072, and speaks OF the en-
bayTassment to trade and loss OF interest
caused by delay in moving gold from one
centre to another He discusses remedial
measures as follows:
IL would seem that means might be de-
vised to diminish the transfer OF physical
gold under these conditions That credits
or loans Of gold might be extended more
Renbrously than at present. by one nation
10 another in times Of stress was proposed
soon after the crisis OF year ago. 1t has
bean suggested that an international con-
ference be called of representatives OF the
ministries OF finance and OF the great State
banks with a view to more prompt and
efiective cooperation in emergencies. III
h such q conference should be held there
might we'll be included in the list Of topics
Z 70 be considered the creation OF an inter-
ExNII
ropresent for all practical purposes the
transfer OF gold coin or bullion without the
necessity Of transferring the meta1tself.
Such an arrankement would require
International sanction. either by an agree
mcnt among the leading banks OF the world
70 Issue transferable International GER
y ttacats upon a certain amount OF gold coin
de6nitely set aside for the purpose, or an
mErsen,ent through diplomatic channel s
among the several Governments to some
ninlIar arrangement under official control.
In the present advanced state of public
faith and OF financial responsibility there Is
eDporeatly no serious obstacle to reaching
ouch an agreement II measures are once
at on foot by those capable OF carrying II
out. The issue OF such international GER
tIcates, payable on demand like the gold
Certificate Of the United States. would not
freyent the transfer OF the physical gold
when desired. The certificates might be
redeemable in all countries which were
81 pafties to the agreement without regard
% the country in which they were issued
and it might be left to those in charge Of
he gold funds to determine from time to
Gnae whether physical transfers OF gold
we're required. 1t is suggested that the
Secretary Of the Treasury might be au-
flhorized to receive Hospitality any sugges-
don on this subject from abroad and to
appoint through the proper channels dele
Aaa. hall ~ tha nj m
colference which might be assembled hay
ihg the subject within the scope OF its de-
nberptions. \
Mr. Cortelyou considers the emergency
currency measure passed by the last
Congress inadequate. The monetary
commission. he says, has great oppor-
hinity for public service. For the necee-
tity has long existed for greater iexibility
n our circulating medium, for better
Apportionment OF bank reserves. for
ampler redemption facilities and gener-
ally for greater effectiveness and sound
ness. He says:
The increase In our population. the de-
felopment Of industry, both national and
interpationai. present problems which can
not Be solved by blind adherence to all
the. details OF system which. though In
many ways we'll adapted to our require
msnts and OF great service TO our people
na II has been. was yet primarily the out
HFOwth OF the eNlgencieS OF tlme OF clNi
strife The changed conditions cali fol
qualifications OF the existing system or fol
the ultimate establishment, IL 1t can be
eafeguarded so as TO keep 1t out Of the
Domain of politics on the one hand and the
control of great moneyed interests on the
other, of a central institution Of issue and
control.
The recent currency measure has served
b useful purpose and will be available unit
the recommendations of the commission
can be considered and acted upon. But
we have had unfortunate experiences iu
our past financial disturbances. and though
~ their recurrence may at this time appear
70 Be thing Of the distant future We shoulo
fvs be satisfied with what Is essentially
temporary measure. however satisfaction
It may be as such.
sAnother departure from existing meth
ods is recommended in drastic revision
~ Of the budget. The Secretary believe,
a many economies could be obtained by
vesting in joint committee Of Congress
~ authority 10 revise appropriation bills
The committee, In his opinion, shoulc
be charged with the responsibility o.
keeping the expenditures of each yea