The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-01-30

a
fers of the individuals would no longer
be received, and it was ultimately de-
cided to make no allotments except TO
national banks This decision was die
tated by two considerations-firs the
desire to stimulate the issue of bank
note circulation for a period which
would relieve the crisis; and. second,
the fact that the announcement of the
issue of the new securities had al
ready, TO large extent, accomplished
its intended purpose and had made il
unnecessary 70 issue more than
fraction of the full amount. The is
sue of these securities was suspended,
therefore, before the date first named
for closing the receipt of subscriptions,
I the total amount of the subscriptions
having reached $50. 959 500. The amount
| issued was only s15. 43S, 500. AS all of
these were registered and issued to ma
tional banks with the understanding
that they should be used as a basis
for increasing their circulation or TO
secure public deposits, they are all
on deposit with the treasurer of the
United States for these purposes.
While the awards of per cent bonds
We're made primarily TO the highest
bidders among national banks. the eff
feet OF the awards was TO distribute
the bonds among banks in forty of the
forty-six states of the Union The
one-year certificates were distributed
less widely, but were taken, however,
by Institutions in at least eighteen
states. The issue of the Panama bonds
would have been required in any case
within short time to meet the ex-
penses of construction of the canal.
and the secretary of the treasury, it is
argued, could hardly be held response
BILE for the effect Of such issue of
volume of bank note circulation, what
ever might be his opinion as to the
desirability of the imitation which
might result. Practically, therefore,
the responsibility resting upon him re-
lates only to the SIS, 436, 500 in the one
year certificates, and will terminate
with their maturity and redemption
on Nov. 30 of the present year.
Deposit of Public Moneys.
Concerning the distribution of pub
lie moneys in banks throughout the
country, the secretary says that this
has been done without regard to par
tisanship, and no section has received
other than the fair and impartial con-
sidera ton to which it is entitled.
1t is shown that the amount of pub
lie deposits on Aug. % was about
Sis, 0000 900. of which the New York
banks held SOS. 253, 1856 On Dec. 7 the
! figures show public deposits through
the country amounting to S222, 1853, 252.
In connection with this statement the
report says:
''While the banks of the state of
New York appear as holders of public
moneys to the amount of 26.S per cent
of their capital and surplus, the banks
of the New England, eastern and mid
| die western states. taken as a whole
and including New York, show a per-
centage of deposits to capital and sur
plus of only a little more than 10 per
cent The banks of the southern
| western and Pacific states on the
whole show a proportion of nearly IS
per cent. With the elimination Of New
York from the eastern group, the per-
centage of the remaining eastern and
middle western states is only about
Ill.,"
Details of the distribution appended
to the report show that the deposits
are divided among 1,421 banks Con-
siderable space is devoted to showing
that great care has been taken in dis
tributing the deposits and much con-
| sideratiOn is shown TO communities
where particular trade movements in
vOlve a special demand for currency at
certain intervals.
After discussing at length the policy
the government should adopt in re-
gard to paying off obligations, the re-
port hints in a general way at a pOssi-
bic treasury deficit at the close of the
current year, the collections for the
six months ended Dec. 81. 1907, show
ing a decrease in customs receipts of
IS. S3S 600, and internal revenue receipts
Of $5,220,00O with the probability that
the receipts during the remaining half
of the year will still further decline.
Anticipating the financial wants of the
| immediate future, Secretary Cortelyou
intimates that if new legislation does
not relieve him of the guardianship of
the money market that has tacitly
arisen, he must make provision for re-
lieving it by making deposits in the
autumn when the demand for money is
usually the greatest. For this purpose
alone. under the present system, he
considers it expedient to reduce the
present volume of deposits of public
moneys in banks. The maturing 8 per
cent bonds will also require funds
Balance Inadequate.
"The department" says he. lis firm
| ly convinced that the cash balance
quaJe to meet all these requirements,
and that no well-founded criticism can
| De maze against It's pOilcy OF lncreaS-
| ing the balance temporarily by the
| sale of securities with the incidental
purpose of preventing grave financial
now on hand is not more than ade-
| disaster.
On the subject of remedial legisla-
ton, the secretary says that i'm every
measure of relief the treasury has
taken he has felt that he was bound.
under our existing fiscal and none
tary system, to have regard, not sim
| ply to the operation of the treasury,
but to their effect on the financial con-
dition of the country. He has not as
sumed this obligation willingly. and
would be glad to be relieved of it at
| least in part by suitable legislation,
and if recent events should lead to in
telligent legislation, tending to adapt
the movement of currency more nearly
automatically to the requirements of
business. it would be a source of gra-
LITIGATION to the secretary and would
greatly diminish the sense Of respon
| sibility which must weigh heavily
upon any occupant of the office under
conditions such as those of the recent
crisis.
TO PREVENT TIE GRIP.