The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-04-24

fiscal wear. Some such step Will De ne
cessarv because the new tariff Will not
go into effect before July, and the gov
eminent is badly in need of money II
the Panamas are not issued, there Is
the alternative of certificates OF III
debtedness, of which the secretary OF
the treasury possesses authority 10 sen
not exceeding s100'000,00O at any one
time at not more than per cent IN
terest and for no longer than year.
That the government does need
money is shown by the current circu-
lar of the National City bank of New
York 1t forecasts the condition OF the
treasury, and concludes that April, May
and June will produce an addltlonai
deficit of $30,000,000, which must be
met out of the cash resources, either
from the working cash or from the
funds in depositary banks, or from
both.
The available cash balance Is $lSZ,-
600. 600, of which the treasury holds IN
its own vaults as working balance
$50, 00O, 900, and of which the deposl-
tary banks hold to the credit OF the
treasurer of the United States $60,Ooo,-
600. The sum of the two, $116,00O,oOo,
represents the effective cash resources,
since $16,000,O00 is set aside as dis
bursting officers balances in deposltary
banks or as funds in the treasury OF
the Philippine Islands.
1t is quite possible that the impend-
ing deficit of $30,000,000 could be met
from either the working balance OF
$56. 100000. or from the $60,OO0,OOO IN
depostary banks, but such a course IS
not altogether convenient. Several
times in recent years, it is stated, Sec
retaries of the treasury have permitted
the working cash to fall below $25, Co.,
000 but so small a sum distributed
among nine sub-treasury offices ana
the office of the treasurer at Washlng-
ton. does not admit of as ready and
easv payments and transfers as could
be desired.
Considerable difference of opinion
exists as to the size of the balance that
should be kept in the depositary
banks On this point the circular from
the National City banks says:
when banks were required to utl-
lie their machinery only for the COL
lection of internal revenue, a mini
mum of $15,O00,0O0 to $20,00O,O00 SUI
feed: but since practically all govern
ment receipts are collectible through
the banks much larger balances in the
aggregate are required to be main
tanned. The great growth In recelpts
and expenditures during the last ten
wears has also imposed heavier bur-
dens on the bank and now requires,
according to a recent treasury estl-
mate a depositary account of some
thing like $50,O0O,O00 That is the sum
now being held by the regular deposl-
taries, the remaining $1O,OO0,OOO IN ue-
pOsitary balances being held by those
banks having special or temporary des-
ignatiOnS These last named deSlgna-
tions might be Cancelled at any time
now so far as the government is con-
cerned. but nearly one thousand banks
holding an average of only $4,000
each would be disappointed in giving
nm completely the distinction which at
taches to a designation as a depositary
of the United States. Most of these
qualified for the reception of pubic
funds in the days of plethoric treas
ury by the purchase of government
bonds at high prices, as set 1orth Iul
ly in our last months circular NO
doubt in a pinch the regular deposl-
taries could transact the business OF
handling government accounts on
much less aggregate balance than
100000, 600"
With a deficiency of $30,000,00O for
April, May and June, the cash re-
sources in the treasury will be reduced
to the perilously low figure of $4,000
900. of which a part must always be
kept as a working balance and part
in the regular depositaries. A bond is
sue or an issue of certificates of in
debtedness cannot be much longer
postponed.
The republicans have lodged the
tariff question until the eleventh hour.
They are recasting the schedules now,
not with the idea of tightening the load
on the people, but of producing more
revenue, which the government must
have. They are flying false colors
when they declare that the tariff bill
is revision downward.