The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-01-01
Secretary Of the Treasury
Holds America Now is
World Nation Finance.
PREDICTS BRIGHT
FUTURE FOR d. 8,
Discusses the Use OF Treasury Surplus
in Aiding Busincss-Does Not Hest
tate in Lauding the Bankers OF the
Country.

Washington. D. c.. Jan. 1.-Frank-
lin MacVeagh. secretary of the treas
ury. in an interview today. praised the
bankers of the United States for the
work they have done in the year just
drawing to close. The American
banker. Secretary Macveagh declares.
in finance. as well as ae,abittng char
acteristics that help to nuke the out
look for continued domestic prosperi-
ty the very brightest. With the alb
sence of disturbing legislation Mr..
MacVeagh can see no cloud to menace
a great prosperous epoch for business.
The secretary dwelt also on the use
Of the treasury surplus in aiding busi-
Smatter of timely interest In view Of
the attention that congress soon will
devote to financial legislation Of q
broader scope than has been UNDER
taken for several years.
THE most notable feature of the
nations financial experience in 1912"
Secretary MacVeagh said, has been
the American bankers have financed
the movement of our extraordinary
crops and the legitimate business ex-
pansion incident to our growing COM
mercial and Industrial prosperity. This
financing has been done in the face of
a European situation. due to war and
rumors of wars, which practically
that We usually draw on under like
conditions.
This year our money markets not
! only have been without the usual for
eign gold remittances. but they have
had to absorb large amounts of Amer
lean securities sent back from Europe
to meet the foreign money needs. The
remarkable handling Of this financial
situation is an evidence of the poise,
ican bankers. They not only financed
adequately and without hesitation the
business OF this country. but have ac-
corded magnanimous treatment to the
financial markets abroad. Every evil
dence has been given this year Of the
world character of American banking:
and every proof that in nothing have
in our banking. l have followed this
bit Of current history with great in
terjest and with ever increasing re-
spect for our bankers.
The treasury department has kept
itself informed of the banking and
business situation, because it has held
that any surplus in the treasury is
kept In trust. as 1t were. for the uses
of legitimate business and to be de-
posted in whole or in part in the
to transfer the surplus from the vaults
Of the treasury to the channels of
business. This surplus. it must be un-
derstood, however, is not merely q sum
Of money. 1t is a reserve fund. q re-
serve for the banking system. And It
is peculiarly important that the
character of the surplus as a reserve
| oh ho nj or1x, nd
the surplus should be dealt with on
that basis. The views of the nature
and responsibilities Of its surplus held
| by the treasury department, l have
every reason to believe. have been
generally approved by bankers and
others.
"a reserve-that is. real reserve
of course, is something to be used and
not something to be merely locked up.
used lightly or prematurely nor for in
adekuate reasons. One must not
evaporate q reserve until it is neces-
sary. More or less suggestions have
nevertheless appeared. from one quar-
ter and another, for treasury action
that would have resulted in the
leading financial and commercial au-
thorities up to this time have refused
! to see any advantage or anything but
disadvantage in government deposits
which would dissipate the surplus.
"It is true that the general firmness
of money here and abroad has dis
couraged speculation on the stock ex-
changes, but the reduced speculation
almost universally is regarded as one
of the fortunate incidents Of the pres
ent period. 1t Is true also that the
stiffening of money rates has put con-
servatism into the business expansion
and promotion incident to our new
prosperity. But here again the influ-
ence has been wholesome and not de-
pressing, for the tendency in our opti-
mistic America is to go too fast when
new epoch of prosperity is entered.
Instead of walking faster. as 1t were.
or Of trotting a little. great many
of us want to break into a gallop and
interest rates are legitimate check
when they are not obnormal. and the
rates this season have not been abnor-
NAL.
II speak Of the rates prevailing in
commercial and industrial business.