The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-04-02
FOR TREASURY RELIEF.


New York Financier: In submitting
the tariff schedules the chairman OF
the ways and means committee. with
view to giving assurance OF the ef-
f1ciency of the measure as a revenue
producer, expressed the belief that
under anything like normal condi-
tlons during the next fiscal year. Ii is
safe to predict that the deficit will be
entirely wiped out" This result will
be achieved. in his opinion, through
the aid of an inheritance tax. as car
ried in the measure, and by bond Is
sue of 40 million dollars to refund to
the treasury the purchase price of the
Panama canal. AS further precau-
tion the provision for the Issue OF one
year per cent certificates, to replen-
ish the treasury. is re-enacted, the
sum involved being increased from 100
millions to $50 millions, Sufficient"
said the chairman, TO provide against
two or three years Of depressed busi-
ness conditions"
II would seem from the above state
ment that the chairman has some
doubts as to the efficacy of the tariff
measure to produce revenue. We do
not propose to controyert his optlmis-
tic views, he is an expert In such mat
| ters as tariff construction, and he Is
doubtless sustained In his opinions and
conclusions by equally experienced
J students Of this great question. Still
| it appears to be dangerous to venture
upon prophesy. and especially such as
is based upon expectations of the
ing the ensuing fiscal year Nothing.
however. can be gained by the indul-
gence of pessimism; the situation
seems ripe for business recuperation;
the countrys industries are waiting
for an opportunity to revive, and ap-
parently there is no obstacle to re-
covery. which is not easily removable.
AS soon as the tariff measure shall be
disposed of and become law every
effort will be made to adjust business
conditions to the new schedules, and
It is hoped that these efforts will be
successful.
The two propositions which are sug-
gested for the relief of the treasury
that which provides for an Issue of 40
million bonds to refund the purchase
price of the Panama canal and that
authorizing the issue Of per cent
one.year certificates Of Indebtedness,
increasing the amount of permissible
issues to $50 millions-will, under GER
tain conditions of the money market
result in initiation of the currency by
the amount of the bonds SO emitted
If congested monetary conditions shall
exist when the emission of either OF
these classes Of bonds shall be effect
ed, the sale thereof will probably be
confined to national banks which will
employ them as bases for new circula-
tion should there be the degree of
business activity which Chairman
Payne anticipates, few Of the 3 per
cents will be attractive for investment
Moreover the redundancy of clrcula
tion, resulting from their absorption
BY the banks will tend TO depress the
market value OF the 2 per cent Pana'
ma bonds possibly to such figures as
Will make them unstable at par. and
hence they would have to be With
drawn. Furthermore the contemplated
offering of 3 per cent treasury certlh
Gates would naturally induce banks To
give preference TO these as security foT
bank notes, contributing 10 force a
lower price for the per cent consols
through their sale preparatory to SUB
stitution for the 3s. This derange
ment In the government bond marker
would seem likely to be so disturbing
benefit which would result from the
treasury relief that Is desired to be
obtained through the bond issues.
Redundance OF national bank cur
rency would invite liberal current re-
demptions of bank notes. We las'
year had demonstration Of this 1ac'
when the redemption bureau OF the
treasury was In state of almost con
stant congestion because Of the con
tinued accumulation therein of notes
that had been currently redeemed ou
of the general fund. thus seriously de
J pleting such fund and threatening Ell