Rensselaer Semi-Weekly Republican, Volume 40, Number 29, Rensselaer, Jasper County, 17 December 1907 — PLEADS FOR CHANGE IN MONETARY SYSTEM. [ARTICLE]

PLEADS FOR CHANGE IN MONETARY SYSTEM.

In His Annual Report to Congress Mr. Cortelyou Advises a More Elastic Currency System. Disaster to trade, commerce, labor and investment can be effectively prevented only by a reorganization of the national monetary system, according to the report made by Secretary of the Treasury Cortelyou to Congress. The Secretary deplores that under existing laws his hands are tied during financial emergencies such os stirred the country lately. He has no specific plan for monetary .reorganization, but he makes strong appeal to Congress for immediate remedial legislation. The report declares that banks as well as individuals hoarded money during the financial stringency. The report gives in detail the attempt made by the Secretary to head off bank failures and business suspensions in the East by the deposit of government funds. The government is shown to be in an exceedingly prosperous condition with a surplus at the close of the fiscal year of $84,236,586.20 of receipts over expenditures. “What has happened, not only this year but many times before,” says the Secretary, “should serve as an admonition to enact wise laws for the prevention, in the future, of disasters due In part, at least, to the imperfect organization of our monetary sy stem.” The Secretary points out that the increasing rate of Interest charged for call money and time money, as well as discounts on commercial bills, indicated a progressive diminution of available cash during the early part of the year. To offset this, distributions of $26,000,000 of government funds were made among several banks. Four days prior to the Eastern crisis $35,000,000 more was transferred from the treasury to banks, for which State, municipal and railroad securities acceptable to various States were taken as collateral. On Nov. 11 the sum of $226,830,237.04 was on deposit in national bank depositaries throughout the country. “It is said that many of our people have hoarded money,” the Secretary states in his report. “This Is • undoubtedly true; but so have many of the banks.” The report shows the total receipts of the government from all sources for the flscifl year ended June 30, 1907, to be $546,725,339, and the expenditures $702,488,753, leaving a surplus of $84,236,586. Compared with 1906 the receipts Increased $84,338,435 and the expenditures 325,771,171.31. The refiiort states the total debt of the United States to be at the close of the fiscal year $2,457,188,061.54, ngniribt the i>nyment of which there Ik In various forms of cash In the treasury or to the credit of the treasury, the sum of $1,688,027,068.83. There were 0,582 banking associations In existence at the close of the year, with an authorized capital of $004,494,775. At the close of the fiscal year, according to ttie report, the money In circulation amounted to $2,772,956,435, or 7* per capita of $32.22, while the percentage of gold to total circulation \tas $41.90. Paper currency was issued during the year amounting to $1K>8.273,000, and the redemptions during tbe same period Here $582,902,000. The treasury holdings of gold at the oIo c e of the year 1906 niuouutcd to $807,051,690.30. and this had Increased at the end of 1907" to $904,091,730.1*