The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-08-14
Question Concerns Finan-
cierS and Politicians.
MAY INVOLVE THE TREASURY
Secretary MacVeagh Faces Trying
Situation on Eve of Fall Elections.
Daily Balances PeriIOusIy Near the
Dead Line-Bankers May Avert a
Financial Disaster.


the crops to market this year without
calling upon the United States Treasury
fer assistance?
This question bothers many fnanciers,
including Franklin MacVeagh. Secretary
Of the Treasury. II it could now be an
swered in the Affirmative, a heavy load
would be lifted from the shoulders OF the
Secretary. bankers would stay a week
longer at the trout streams. and incl
dentally the campaign managers OF vari-
Gus State elections would spend a whole
hour of rejoicing in the midst Of their
heavy labors.
Treasury Much Weakened.
The fact Is the Treasury Is not in good
shape 10 assist the national banks 10
a large amount OF cash. even temporar-
ily. for moving the crops. Its working
balance for some time has been only
spasmodicauy above S3OOOO.OOC. and its
balance IN the general fund gravitates
between S92 100000 and Ss5,O00oCo, while the
amount IN the depositary national banks
is about 100000
Z
the excess OF expenditures almost every
day runs into large figures. with an oc-
caSional rift in the clouds when receipts
show a small excess over the money paid
out The chief source Of drain is. Of
course. expenditures charged 10 the ac-
count OF the Panama Canal
1t has long been an open secret that
Secretary MacNeagh is doing all any
man could be expected 10 do 10 tide the
finances OF the government along past
the fan elections and until Congress
meets, without the issue OF more bonds
on the Panama Canal account
Bond Issue Bad Politics.
In the first place. it would be bad poi
itics 10 go into the fall campaigns with
a bond issue made or Immediately I'm
mineut. II would furnish weapon in
the hands OF the opponents OF the admin
istrauon Of deadly effect. Whereas II
the financial affairs Of the nation can be
so managed as 10 keep the present bal
ances fairly intact through the summer
and fall months. Democracy cannot have
much to say against the conduct Of the
| Treasury.
Probably it was with the thought in
mind OF saving the Treasury from drafts
/ 10 move the crops that Secretary Mac
( Veagh made the appeal to the bankers
I OF the country TO form CT. rency asso-
Citations under the authority Of the Vree-
| Iand-Aldrich act for the issue Of emer-
gency currency. II is also probable that
/ If these associations already formed and
others that may he formed exercise the
prerogative OF issuing such currency L
will be as much a measure Of relief 20
the Treasury as TO the banks in The way
Of cash for the needs Of the crop-moving
( period.
Congress Mt Fault.
The thing which chiefly complexities the
situation is the fact that Congress failed
at the last session 10 equalize the circu-
lation tax as between the > per cent bonds
and those of highest interest rate II is
almost inconceivable that a lot OF poll
ticians. with the fan elections coming
on and the Treasury waiting for two
years for such an act so that il might
issue Panama bonds and dispose Of them
with something like freedom, did not open
the way for the Treasury 10 increase its
balances and afford the cash necessary
for the country's needs without resort TO
emergency currency under the Vreeland-
Aldrich act.
II should be evident that the issue OF
bonds or other forms Of Indebtedness to
provide money to carry on the operations
at Panama cannot be delayed many
months. Some think II has been delayed
TOO long already. and that some sort OF
financial stringency may be seriously felt
before snow flies. n not before the fan
elections. While SsCS.o0o. 900 in bonds were
provided for by Congress on the Panama
Canal account. only SS7.00O,Oe0 have been
issued. for the good reason that they can
hardly be shoveled out OF the Treasury
under the existing law regarding the cir
culation tax. Nobody wants them. and
Secretary Macveegh could issue them
only at par or an actual loss 10 the
government
Why Economy Is Needed.
Hence the effort to piece the revenues
Of the country along into the fall and VIM
ter months in the hope that Congress will
pass the needed relief act after the cleo
tons.
Judging from present indications, the
banks Of the country will have enough
money-or nearly enOugh-tO handle the
crops without resort to unusual methods.
There is probably a better distribution OF
money IN the banks Of the country than
ever before in its history. Small banks
in the interior are we'll supplied with
cash. and apparently the call upon the
big money centers this year will be less
than in former years, in which case
there will be less likelihood Of direct calls
for help upon the Treasury.
Financiers of wide knowledge and sound
Judgment are Of the opinion that the pol
icy adopted by Secretary MacVeagh will
work out. and that finances Of the cOUn-
try will be safe without disturbing fnan-
cial centers unduly Naturally. the pollti-
cal situation win be saved. If this comes
true, but possibly the layman VIII never
know by how small a margin a panic
has been averted or by how close shave
the administration has been saved from
grave embarrassment, if not from hope
less disaster.
Peaches. pears. grapes. cherries. igS.
olives. guavas, and various melons OF SUI
perior quality are produced in large guam
titles IN Uruguay. and It is proposed 20
utilize the steamer lines between Monte
video and New York and Boston to sup
pls- those markets