Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1910-12-27

/ revenues ana disbursements OF the
government and the lrrcgularily of
It's fiscal operations have produced
Interference with business TO q lars
or extent with the passage OF the
years Efforts by tho treasury TO cor
rect or prevent the consequent m Of
fects have become much more fire.
quent and brought tho government
into close relations with tho banks,
| on some occasions. too, the neces-
stiles of the treasury hnye compelled
It 70 rely on the help OF the banks
and 50 brought them together In their
operations"
The first two steps away from the
act Of 1876 wero taken, according 10
the author In 1858, by the law estab-
fishing the present national banking
system, Henceforth the secretary OF
the treasury might designate national
banks to be depolstaries OF public
monies, except receipts from customs.
National bank notes We're, moreover,
to be received at par in all parts Of
the United States IN all payments 20
N''N ~ Wv h'NAl AAIlflAs NAAfUL NAh~
toms and interest on tho public debt
The extent to which the treasury has
avalled itself Of the privilege OF de-
poslt has varied mainly according to
the Views OF the secretary OF the treas
ury or the president.
During the past ten or fifteen years
Dr. kinley finds that there has grown
up a policy of active Interference with
the money market on the part OF the
treasury department. This now poll
Icy, bo believes. is due 70 the realiza-
ton on the part OF secretaries OF the
treasury and business men OF the
evil influences OF the independent
treasury system on business. In lS46
the receipts and disbursements Of the
government were too small TO have
any appreciable effect. today condi-
tions are very different. The treas.
ury IL the greatest single handler OF
money In the country and its annual
revenue frequently runs much be-
yond its expenditure Consequently
the withdrawal OF large amounts Of
money from circulation may lead to
monetary stringency and business un-
certainty: its sudden disbursement
may stimulate unhealthy speculation.
This influence OF the treasury on
business exerted mainly through It's
action on the volume and character
OF tho purchasing medium Of the
country is shown by numerous tables
compiled by the author. "The two
important and striking facts brought
out by study OF these tables and dla-
grams are the irregularity OF the op.
erations of the subtreasury in absorb
Ing and disburslng currency. and
therefore In contracting and expand
Ing the currency and the bank re-
serves; and second the lack Of cor
respondence between the periods be-
tween subtreasury disbursements and
the needs OF the banks, as well as be-
tween subtreasury absorptions and pc
riods of case on the part Of the hanks.
/ 1t Is evident that there Is no neccs-
sary connection between subtreasury
supply and bank need. Sometimes the
two movements are In the same di-
rection and sometimes in opposite dl-
rectlons. There Is no certainty that
the subtrelsury movement, whether
1t coincldes with or antagonlzes the
demand for money from the interior,
is In the best direction at any partlc-
ular time"
The principal methods employed
by secretaries to calm a troubled mar
ket are the restrlnlng influences on
speculation attained by locking up
money opportunely the redemption
Of the public debt, and the deposltlng
OF public money In the banks Tho
last two methods are measures of re-
lief when monetary stringency has de-
veloped.
"lf the deposits of publlc money"
says DR.. Kinley are to be relied on
as a source of relief In times of trou.
ble they should not be made at other
times That IS to say, reliance upon
the treasury for relief through the
deposit OF public money in crises Is
unavailable Il the treasury deposits
Its receipts currently with the banks,
for obviously there viii be no surplus
in the treasury to deposit when trou-
BILE comes This happened IN 1,01
The surplus was all deposited in tho