New-York tribune., 1911-01-01
TREASURY'S GOOD YEAR.
Deficit on Ordinary Operations
Reduced to S6,000,O0O.
$780, ,000,00 PAID ON CANAL
Showing Gratifies Officials
Panama Bond Issue Next I'm
portant Financing.

Washington, Dec. 3l.-The beginning OF
the new year finds the condition OF the
treasury much improved over what II was
on January l. 1910. When 1909 ended the
Treasury had spent about SIC 000001 more
than 1t had taken In, not including the OK
traordinary expenses for the Panama
Canal.
The beginning OF 1911 finds that deficit re-
duced to 100000. and the total deficit, IN
Guiding Panama Canal expenditures. re-
duced to almost s26,ooo,Ooo on all accounts
practically half what It was a year ago.
The year closes with about $685. 0oo,oc0 in
the general fund and a working balance OF
sS4,00o.OOo In the Treasury, both consider
ably lower than year ago. This is con-
sidered by the officials a remarkable show
Ing In view OF the fact that more than
$3.50, ,000,fo has been advanced out OF ordi-
nary funds for canal construction. The
showing seems to sustain Secretary Mac
Veagh's declaration that the Treasury
would be able TO keep an even keel until
Congress passed legislation TO allow an
issue OF securities on the plans which Mr.
MacVeagh has formed.
Such q plan as Mr.. MacVeagh and Sena-
tor Aldrich have so far worked out con-
templates the issue of $J0.O0o.0o0 or sloO.ccO.-
900 OF Panama bonds, not to be availabie
as security for national bank circulation
and at q rate OF interest high enough 10
make them attractive to investors. Such
a plan promises TO develop into legislation
when Congress settles down to work.
The beginning Of the new calendar year
also marks the opening OF the second nan
Of the current fiscal year OF 1910, Which
began on July 1.
Not only do the working balance and the
general fund show their strength after the
six.months' strain, but the ordinary dehclt
for the fiscal year has actually been re-
duced. The close OF the first month OF the
fiscal year found the cash drawer out some
100000 on ordinary accounts. Ihe nrs'
half OF the year closes with that amount
reduced to sS0o0Od0, although 1t had been
as high as s14,0cO0o0 in the six months.
Close check on expenditures, with acoeo
receipts in some quarters which, however.
have probably been offset by decreases III
others. has gradually worn II down.
The working balance is now H'oW"
mora than the close OF the first months
business found II. and when II is consld-
cred that several times since the fiscal year
hegan the ready cash has sunk as low as
COG COO 90 and the general fund as low as
ssA 900. 900. the present condition gives salts
faction TO officials who have been preolct-
ing that the governments finances would
right themselves In the face OF an amor
NAL drain.
Two important possibilities, however are
IN he reckoned with in the next SIX months
in any study Of the national finances Inc
first IS the decision OF the Supreme Court
in the corporation tax cases. Should that
he adverse TO the government, the Treasury
would be required 10 pay out NhNoop.
That would be met by an immediate issue
~ 2 ner cent certificates OF Indebtedness, 70
run one year. The law provides authority
10 meet such a contingency.
The second is that the reclamation SER
vice may call for S20,00O,0o0 for important
works I'm the West That would be met by
an issue Of bonds already authorized, but
tho Treasury cannot issue the bonds unu'
it has paid out the money the expendi-
ture of the S20,0co, 900 will not he IN a lump
ard the Treasury will have TO pay 1t out IN
comparatively small sums Any ISSUE OF
bords on that score, therefore, seems u Do
some time distant.
The issue Of Panama securities at rate
q, interest which will attract investors ana
supply funds without initiating the present
basis of national bank currency is the next
big move on the slate.