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Show ' -. - j Standard Mut Market iu removed I to their sew home, 41 East 3rd 8ouU I t. Both phomtM. ' - - ftllAKOffi RECORD 0? ' 53 GOOD, . DECLfflES.. ECrajY OPTREASURY fSHINQTON,- J.n, wTh,re is SewVwy?0Il 'Jf- Onr anxiety ' 2otr lMt" faeiUties prop-' prop-' t0 Trnr. "tore, traaiDort and : ery man be of good cheer gn3 trv to ' 8wretary Shaw thai eoncluden re-;!?fv0u re-;!?fv0u ih yr' financial rnrd, a.,,ba prepared in 2 raoUtplied renwto. In round numbers he placea the rooeirts calendar year 1906 at $6:5.000,- " orm'rv5nd th xPnditnre st $566,-000,000 $566,-000,000 or aa excess of receipts over erpendituree of $59,000,000. M there naa been no change in the tariff lws or the lawe relnting to internal . revenue, SecreUry Shaw Mv the large increase in receipts is due sdy to the extraordinary trade activity. The 'T total expenditure, however, for 1$ s f - compared with 190. he eavs, Fhws a I .. decrease of only $5,000,000." ! No Deficit at Present. Discussing the finances of th "v-rnmest "v-rnmest for the six months of thf pre? ent fiscal year just closed, the Sretsrv says- the books of the treasury show 5lpi55 r5eiPts over expenditure of k $25,000 000. as compared with a deficit of $8,000,000 for the corresponding ; months of the previous fiscal vear. The cash in the treasury is $f0 noi.noo, . as compared with $171,000,000 ' a year ago, an increase of $19,000,000 "The i cash in National bank depositari"!' is $159,00,000. as compared with $o.od0,-000 $o.od0,-000 a year ago, an increase of fi.-000,000, fi.-000,000, and the total cash in tie genera fund is $356,000 f" as gainst $242,000,000 a year ago. Against this cash there are liabilities at the present time of $13.''i"i0."no greater than at the same time iast . year. The available cash balance has ' Increased during the vear $101,'ViO.0OO. With the general fund standine at $237,000,000, SecreUry Snaw remarks that the bonds maturing July 1. 1907. can be paid, if it shall be deemel wis, .and still leave a working balas-e of i'more than $120,000,000. T. If the owners would aerer the prevented, and is most Instances a resultant re-sultant crash averted. "Unfortunately, the banks are not the onlv nor the principal sufferers from contagious financial diseases. Generally they sre sble to protect themselves, for if their loans have been well made they have only to refuse additional ad-ditional accommodations and await results. re-sults. If a erash should come, from whatever cause, factories will elose their doors, the weekly payroll will cease, and the people least responsible for conditions will be the ones on whom this lesson of self reliance will fall with saddest effect" In conclusion Secretary 8hw ssys: Defends Present Policy. "It is urged sgainst the present policy that it places too much power and authority in one man. It does not place power or authority with one man. The responsibility reste with an administration. ad-ministration. A financial panic ruins any administration. For years the name of a very worthy President, a man who, with high ideals and lofty patriotism, wa? well nigh a renrjacn becanae his administration was accompanied ac-companied with widespread financial disaster. If an administration is to be held responsible for the financial health of the people, the medicine chest and the surgeon's kit should not be sunk in the sea . "All authority is subject to abuse. Xo voice was raised against the rate bill because it permits ons man, through an interstate commerce commission, removable at pleasure, snd appointive in vacation at will, to fix arbitrarily, if he pleases, subject to as yet undetermined un-determined jurisdiction by the eourts. the freight rate of every product or S0,OO,000 people. It is presumed yes, it is known that a President responsible re-sponsible not to himself, but to the party that has made him, will so acquit himself, if within his power, as to vindicate the choice of that party and of the people who elected him. Admittedly Ad-mittedly our present monetary system is defective, but the assumption that a new one can be substituted that would be perfect is somewhat violent. - gnoney a says, tne bonds could be paid bow, bat hel doubts whether anv eon-tiderable eon-tiderable number of the holders would accept payment at this time, because they re of the elato who care for little else than certainty of security and exemption from taxation. Increased .Circulation. During the last twelve month?, the Secretary continues, the money in actual circulation, exclusive of the amount in the treasury vaults, has increased in-creased more than $200,000,000. Of this increase $145,000,000 is available for bank reserve and $60,000,000 is in National bank circulation. "Thi," he says, "seems to be a complete answer to the oft Tepeated and ill advised ad-vised criticism that the independent treasury system necessarily results in contraction " when monev is most needed." ,He maintains, therefore, that the existing money stringencv, wor',-i wide in its extent, is traceable in no rpect and in no degree to the independent treasurv system of th? United Sttes. He says the manifest and admired shortage has been caused by the un precedented prosperity in this country and reasonable prosperity everywhere. Th people of the United States, he declares, de-clares, eonsume per capita more food, more clothing, more of everything than anv other pople in the world, and. when prosperous they import very largely. This, he asserts, naturally encourages industry everywhere, and unusual business activity calls for an unusual amount of actual monev and of credits based on actual money Aa to Currency Reforms. As to the currency system rform suggested, Secretary Shaw says that in his -judgment it permits adequate expansion, ex-pansion, but that it's weakne.j is tjit's failure to produce contraction. Vfc.The volume of money, he contends, does not respond to the volume of our hui-pecs. hui-pecs. The actual increase, he add?, may be sufficient, but there is no annua! con-trirtion con-trirtion during the dull summer wonths. "Onlv the unthinking and JyVlvised." he savs, "charge the ad j-artted stringency solely nr lnrclv to and bond speculation." Just now speculation in real ets.e , at high tide, and the opinion i eX pressed that verv likely as much rrtv is tied up in options and margin in real estate as in options and margins on stocks and bonds.. "It is idle to complain of 'he n. evitable,"' he continues. "The 'vyh of speculation among us, and. like the drink habit, those most addye-i are frequently the loudest in der.;!D. ciation. It ill becomes the real ec!te speculator to deerv every other rranj. . festation of desire to get rich onc'K. The epithet 'black' bandied between pot and kettle is never instructive, snd just now it is not even entertaimne. " The effect of the present car s.vrt-age s.vrt-age on the money market is also a. luded to. The Secretary says: "A larger crop of cotton than i;;al and an unprecedented yield of cereals, fruits and everv other agricultural product has filled granaries and ware houses to overflowing and congej ted. every important railway. A few years ago the freight cars of the country averaged forty miles a day, but, owing to the present congested condition snd insufficient terminal facilities and fac tory sidings, they now move only twenty-five miles a day. This delayed freight is owned by some one. and some one money is thus tied up." Co-Operation Impossible. Co-operation between the commercial banks of the countrv. the Secretary says to be impossible. Vjeoause the "German "Ger-man antitrust law forbids it. "In stead." he says, "we have approxi mately 20,000 institutions engaged in commercial banking, each a law unto itself as long as it does not violate statutory requirements with respect to investments and reserve. As a natural and unavoidable result no combined . I effort is made in midsummer to provide ' ample reserve for the strain inevitable on the return of business activity in eident to the fall and winter months. Under our present system the only possible contraction during the summer, i 'i. and the only .possible proviaion for the ) Trail, it effected by the Secretary of the t Treasury withdrawing Government deposits from the banks when these . funds are not needed, and restoring them to the channels of trade as the ned of business require. By keeping a taut xeia wild speculation may be . f - . ;- . i - |