THE OMAHA DAILY BEE : WEDNESDAY , DECEMBER 7 , 18J)8. ) CONDITION OF THE TREASURY Secretary Gage BubmlU Hli Annual Be per of the Department. RESULT OF YEAR'S FISCAL OPERATIONS Showing the Condition of the Nation' * FlnniiccN , vrlth Heo- ommenilotlonn for the Future. WASHINGTON , Doc. 6. Following Is the annual report of Lyman J. Gage , secretary df the treasury : The aggregate receipts for the fiscal year , under warrant , a shown by the report ol t&o treasurer of the UnltoJ States , were $738,549,255.20 , and the disbursements , $827- 688,124.80. There wan consequently a de crease of $89,038,869.60 In the general treas ury balance , which stood at $864,790,237.71 t the opening of the year and at $775,751- 868.11 at too close. Besides the ordlnarj revenues , there were receipts on account o ! the public debt which swelled the total In come available ) In the fiscal operations ol the government to $481,612,255.20 , while cor responding additions to the ordinary ex penditures brought the total on this side ol the account up to $543,561,104.80 , and created a deficiency of $61,948,849.60 aa the net re- eult. These figures , however , do not Includi any part of the loan of $200,000,000 , th < proceeds of which had begun to come It before the dote of the year , though none * ere formally covered Into the treasury un til afterward. On the side of the recclpti Is Included the sum of $64,751,223.75 , realized from the sale ot the Union Pacific am KansM Pacific railroads , while , on the othei band , the expenditures are Increased by $29 , 860,952. disbursed In the redemption o Pacific railroad subsidy bonds. A better view of the results of the year'i fiscal operation * U afforded by the changei in the assets of the treasury. The tola holdings available In this branch ot thi business show only the Insignificant falllnf t from $283,295,424.23 to $275,747,803.17 o unusual a variance as this between thi accounts of the department and the actua condition of the treasury la due chiefly ti the receipts from the now loan , on the oni band , and to unexpended advances to dls tuning officers on the other. In the character of the assets there wa eucii an Improvement as to constitute i cubstantlal gain In strength. The change were an Increase In gold and In deposits wltl national banks , while the losses were di silver and treasury notes. With Insignia cant interruptions , tha free gold , whlcl Blood at $139,867,158.67 at the beginning o the year , continued to Increase until 1 reached $181,240,388.81 on May 4 , 1898 After this , the extraordinary expenditure ! caused by the war , together with the deple tton of the other forms of cash , compelled the use of gold In current disbursements and drew down the treasury reserve , b ; June 18 , to $163,474,057.32. .After . that dati the proceeds of the loan began to afford re lief and the reserve grew rapidly , until i reached $245,063,795.51 on October 7 , 1898 the highest point this fund has ever at talnod. Since then the necessities of thi situation have required an enlarged us ot the coin in disbursements , which ha had the inevitable result ot diminishing th holdings , though only to an iaslgnlflcan extent. By forethought and care an ample stocl Ot notes of suitable denominations WM provided to meet the demand for the annua movement of the crops , and the dlfflcultle presented by the task In former years hav fcee'n In large part avoided. Within fort ; days , alter , the 1st of September , Chlcagi iUofie ta'VpP'leJ ' * ith | 5t60,000 In sraal tbtes ln'exchange for 'larger denominations In. the 'twelve months ended September 3 last the amount of outstanding notes of th1 denomination ot $20 and under Increase' ' from $861,433,82 * to $903,090,863 , while th increase of the gold coin in circulation I the same period , all of course ot the Ilk denominations , amounted to $94,651,05 ! making a total addition to such currency o 1136,208,096. Net Gold In Treasury. Although the net gold in the treasury dui Ing the last year has exceeded the needs c ( he government , having been greater , hot absolutely and In proportion to other mon eys , than ever before , it was found posslbli up to the .middle of October , to accept gel coin to the extent of over $15,000.000 In ex change tor notes of small denomination ! which were needed to facilitate the buslnei ot the country. \ The first procMds of the popular loan < $200,000,000 wert received on June 14 , an from that date forward the Inflow of raone from this source has been rapid and cor tant. The total amount received up to Nc Vembcr 1 was $195,444.187.62. With the object of averting the posslbllll of financial stringency , which might ha > been apprehended as the result ot the dral upon the currency In circulation , the pa ; ment of the Interest due October 1 oh the per cent loan of 1907 was anticipated , tt maturing coupons being mad * payable o September 10 , while the checks for the Ir terest on the registered bonds were sent 01 September 20. Like , anticipation was all made In the case of the interest falling di November 1. The total amount of the pa ; ment * thus advanced was $9,815,116.85. Wll like.purpose , under the circular of Septen t > er 3 , 1898 , the Pacific railroad bonds , whlc will fall due on January 1 , 1899 , amountlc to $14,004,660 , were made payable , prlnclp nnd Interest , In full , wltti a rebate ot om half of 1 per cent.It was also directed thi a large share ot the proceeds ot the populi loan be deposited in national banks , so th these funds , while at all times available fi use , might , until needed , remain In tl channels ot trade. The deposits In nation hanks were thus Increased by $66,775,610. : between May 31 and October 31. The effect of these measures has provi In all respects satisfactory. The director of the mint In his report fi the fiscal year ended June 30. 1898 , thov In detail the operations ot the instltutloi Under bis charge , and also statistics of cell Ayefs derm Pectwal Cheaper thin any experiment , no mat ter what the price. age , production , and monetary conditions of foreign countries. The receipts and deposits of bullion at mints and assay offlcce , Including redcposlts , aggregated $215,566,261,54 , of which $198 , * 740,492.23 was gold and $16,825,769.31 silver , classified as follows : Oold : DomeMlc bullion $69,881,120.57 Mutilated nnd uncurrent do mestic coin l,187f J2.90 Foreign bullion and coin 73.6S7.447.W Old plate and Jtwelry 236,943 37 Total original deposits 147,631,194 S3 lledeposlts 61,017,297.40 Total deposits $198,740.492.23 Silver ( coinage value ) : Domestic bullion 6,484,364.07 Mutilated nnd uncurrent do mestic coin 6,441,436.13 Foreign bullion and coin 717.227.1H Old plate and Jewelry 616,572.72 Total original deposits 13.261.600.11 ncdeposlts 3,561.169.20 Total deposits J16,82o,769.31 The deposits of gold were greater than In any previous year of our history. In but one year have the original deposits exceeded $100,000,000 , the exception being the fiscal year ended Juno 30 , 1881 , when they were $130,833,102.45. Silver bullion purchased under the pro visions of section 3526 , Revised Statutes ot the United States , for coinage of subsidiary silver aggregated 193,522.30 fine ounces , costIng - . Ing $107,741.28. Coinage. Tbo coinage executed during the fiscal year was : Gold $64e.14f > 5.0 ( Silver dollars 10Oi > 2,7SO.OC Subsidiary tllver 0.482.S04.0C Minor 1,489,484.11 Total . $82,609,933.11 The silver dollars coined were from bul- lon purchased under the act of July 14 , 1890. The total coinage of silver dollars from ulllon purchased under act of July 14 , 1890 , rom August 13 , 1890 , to July 1. 1898 , was 78,751,257 , containing 60,909,175.32 fine uncee , costing $58.460,975.54 , giving a selgn- orage of $20,290,281.46. Uncurrent gold coin of the face value ol 1,198,860 , and mutilated silver coin ot the 'ace ' value of $6,109,722.32 were received. . L'hls represents In new gold coin $1,187,683.99 , and new silver dollars $5,443,436.13 , or IE new subsidiary silver coin $5.820,159.16. Ot the subsidiary silver coinage , $5,962,141 were coined from worn and uncurrent sllvei coin transferred from the treasury for re- olnago and $520,663 from silver purchased under provisions of section 3,526 , revised tatutea , for the subsidiary silver coinage , in which later the seigniorage was $286- 11.22. Silver Balance * . The balance of silver bullion on hand at the mints for the coinage of silver dol- ars , subsidiary silver coins , and for pay ment of deposits of stiver bullion in fine bars , July 1 , 1898 , was : Items. Fine ounces. Cost. urchascd under act of July 14 , 1890 . . . .107,701,936.56 $97,407,490.8i "or subsidiary silver coinage at mints. . 1,041,122.64 1,356,316. ; 'or ' subsidiary sllvsr coinage at assay offices 201,494.06 122,815.1 ; At United States as say olllcc , New York , for payment of deposits In fine. bars 419,951.13 466,612.3 ; Total .109,364,504.89 $99S53,2S53 ; Including the balances on hand In the mints July 1 , 1878 , the net seigniorage on .he coinage of silver from that date tc June 30 , 1898 , was $88,182,815.37. Of the minor coins manufactured during he year , $1,148,238.81 were from new ma- erlal and $341,245.30 from old and un current minor coins transferred from the rcasury for rccolnage. The amount of minor coins transferred foi reissue waa $198,900. , The total amount ot minor coins'out- landing on July 1 , 1898 , was $27,311,402.01. During the fiscal year there were manu factured gold bars ot the value of $92,187- 391.67 , and sliver bars , $7,667,887.90. The highest quotation for silver 0.925 fim during the year In the London market w 27 % pence , equal to $0.60831 per ounce flni n United States money ; the lowest quota tlon was 23 5-8 pence , equivalent tc $0.51789. The average price for the yeai was 26 6-16 pence , equivalent to $0.57675 The buirion value of the United State : standard silver dollar , at the highest prlci for the year , was $0.47040 , and at the low- eat , $0.40055 , and at the average price $0.44607. The commercial ratio of gold to silver a1 the average price was 1 to 35.84. The number of grains of pure silver a the average price that could be purchase ! with a United States silver dollar wa 832.20 , equivalent to 1.73 fine ounces. The expenditures necessary to malntali the various institutions connected with thi mint service during the fiscal year wen $1,263,133.02. The earnings from all sources during thi same period were $4,695,797.96 , showing i surplus of earnings over expenditures of $3 , 432,664.94. The net Imports ot gold during the flsca year were $104,868,476 , as against $44,609,84 tor the fiscal year 1897. The net stiver exports were $24,822,146 as against $32,636,835 for the previous flsca year. Tbo value ot gold and silver consumed li the Industrial arts by the United State during the calendar year 1897 waa : Oold $11.870,231 ; slrver. coining value , $11,201 , ISO ; a total ot $23,071,381. There were consumed In new material , li the manufacture of these bars , gold , $7,184 , 822 ; silver , $9,200,497. The total metallic stock in the Unite- States on July 1 , 1698 , was : Gold , $861,614 , 780 ; silver , $637,672,743 ; a total ot $1,499,187 , 523. Silver Coinage. The only provision of law now exlstlni by which any Increase In the stock of frac tlonal coin in the country can be made I that ( section 3545 , Revised Statutes ) author Izlng the purchase of the small amount o silver contained In and separated from gel deposits. The amount of silver thus obtained las year from gold deposits was 184,595.39 fin ounces , which would be sufficient to col : about $256,000 of our fractional coin. Thi Is wholly Inadequate to meet the actual de mand , There has been In the past a larg stock of fractional coin In the treasury , ac cumulated after the resumption of sped payments. During the period of pape money our stock of stiver coin was exporte principally to Central and South America : countries , where It passed at its face value but upon resumption of specie payments an the passage of the act of June 9 , 1879 , pro vidlng for the redemption of fractional sllve at Its face value , thMe coins returned I such quantities that , with the new colnag executed , the fractional sliver became reflun dant and accumulated In the treasury. Fa the last ten years the country has been at scrblng that stock at the rate of from $1,500 , 000 to $2,000,000 per year , and this year tn demand has been exceptionally strong. Th amount of fractional silver coin held by th treasury July 1 , 1897 , was $16,201,960 ; o July 1 , 1898 , $12,070,690. This stock has , a present , November 18 , been reduced t $7,122,506 , much of which Is so worn as t be unfit for circulation , l > o n and Currency * The Interest-bearing debt July 1. 1897 , Ir eluded unmatured United States bonds oul standing in the amount of $847,820,000. N material change appeared In the debt stat ments In the fiscal year ended June 30 , 1S9 but on June 13 a circular was published IE vltlng public subscriptions for $200,000,01 S per cent bonda authorized by the act c June .13 , 1S98. The public response to tkls Invitation wi not ceaOfltd to any itctloi , et thi counti and during the thirty days prescribed tn the circular as the period for subscriptions then were received 232,224 of $500 and Usi , ac companied by full payment for the bonds , and over 88,000 In sums greater than $500 , accompanied In each Instance by a deposit of 2 per cent of the amount subscribed. The tntnl nutacrlptlons of $500 and less was $100,444,560 and the total In greater amounts than $500 , Including certain proposals guar antying the loan , amounted tn the aggre gate to more than $1,400,000,000. As provided by the circular , the allotment of bonds to subscribers ot amounts greater than $500 began Immediately upon the close of the books July 14 , the smallest subscrip tions being first allotted until those of $4,40C and less had been reached , There was a residue , ascertained to be about $2,500,000 , which was allotted pro rata among the sub scribers ot $4.600 , each subscriber for thai amount being awarded the sum of $1,300 On page SO will be found a statement show ing the numbtr of subscribers , by groups for amounts over $500 and $500 and less. The bonds were dated August 1 , 1898 , ant tbclr preparation was carried on as rapldlj as possible. Soon after that date the department - ment began their delivery , subscribers foi $500 and less being the first to receive theli bonds substantially In the order ot the re ceipt and acceptance of their subscriptions The delivery of the bonds to subscribers o : this class was practically completed abou the 1st ot September , though there are stll some undelivered , owing to Incomplete ad dress or pome other Irregularity not yet ad- - justed. Before the delivery ot the bonds to sub Bcribers of $500 and less had been com plcted the department began the delivery or account of greater subscriptions. This hai continued to the present time and Is still li progress , as subscriptions amounting ti about $200,000,000 are > sttll In part unpali under that provision of the circular ot Jum 13 which provided for payments In Install mcnts of 20 per cent at intervals ot fort ; days. Operation1 of the Tariff. Domestic industrial enterprises are un questionably benefited by the tariff act o 1E97 , designed n well to encourage homi Industries as to Increase the revenues ot thi government. By reason of the fact that Im porter ? , anticipating the passage of the ac referred to , provided themselves with largi stocks ot merchandise of every description the tariff of 1897 cannot be regarded ai fairly tested by the receipts Immediate ! ] following Its pamage. As an lllustrattoi ot the correctness of this view , it may hi stated that during the first four months o the fiscal year 1899 the receipts from cus toms ( exclusive of the duty on tea pro vided by the war revenue law ) amounted ti $62,776,080 , which la $4,633,026 In excess o the receipts for a similar period in an : year since 1892. A reciprocal commercial agreement hai been entered Into between the United State and France , under the provisions ot sec tlon i ot the tariff act ot 1S97 , and ncgotta lions with a similar object In view are li progress with other countries. Chinese Exclusion. The total number of Chinese persons ad mltted to the United States in the las fiscal year was 7,195. Ot this number 6,27 : were of the exempt class , principally mer chants , students , etc. ; 425 were so-callei artiste , actors , artisans and laborers , ad mltted for the Transmlsslsslppl and Interns tlonaf exposition at Omaha , and 1,497 wen returning registered laborers. There wer also 865 who passed through the Unltei States under bond In transit to other coun tries. Two hundred and eighty Chines were refused admission. The number of Chinese persons arrestei for deportation because unlawfully In thi United States was 766. Of this number 22 were deported , .by due process of law , at i total "expense1 of $24,132.94. 'ThS-Kgsregat ' expense Incurred in the enforcement o'f th Chinese-exclusion laws was $84,453.74. The Joint resolution approved June 30 1897 , authorized and directed the admlscloi to the United States ' of such number o mechanics , artisans , agents , or other em ployes , natives of China , as the secretir of the treasury night deem necessary to the purpose of preparing and cono/uctln , any privileges or concessions which mlgh bo granted by the Transmlsslsslppl and In lei-national Exposition company of Omaha Neb. , In connection with such exposition The department waa duly advised of th granting ot two concessions for Chinese ex hlblta at the exposition and the concession ilrea , with the approval ot the proslden of the exposition company , made appllca tion for the admission of 835 Chinese. Re Harding the number excessive , the landtn of 650 Chinese persons under the conces slons r f rred to was authorized and c this number 426 were admitted during th last fiscal year. The department la now advised that man of the Chinese admitted are no longer a the Omaha Exposition and that a consider able number of women so admitted hav since been the subject of barter for immora purposes. With the close of the fiscal year 189 ! the United States Marine Hospital servlc completed the 100th year of Ua exlstenci the original act for the relief of sick an disabled seamen having been passed b congress on July 16 , 1798. The expenditure from the marine hospital fund during th fiscal year 1898 were $600,131.45. The balance anco on hand at the close of the fiscal yea was $514,997.83. Port * nice. An Important question , which will n doubt demand consideration in congress c an early day. la the money situation 1 Porto Rico. The existing currency of th Island consists of silver coins known a pesoa and centavos. The peso Is of th weight and fineness of the Spanish piece c 5 pesetas and corresponds in both reaped to the 6-franc pieces of the Latin unloi Its bullion value , compared with the bul lion value of the American dollar , is as 93 , Is to 100. The centavo Is ono-hundredth < a peso , and the smaller coins consist ( pieces ot 20 centavos and 40 centavos , the : being the exact counterpart In weight an fineness ot the Spanish pieces of 1 and peseta * and the French coins of 1 and francs. The Porto Rlcan coin bears no fixed re latlon to gold , not being anywhere redeem able in the yellow coin. They were Intrt duced Into the Island by Spain In 1895 , an by a forced exchange were substituted fc Mexican coins , which had previously con stltuted the principal money medium , Th best estimates obtainable place the volura ot this silver money now circulating I Porto Rico at 6,500,000 pesos. The fact thi the Spanish government put the sate quantity of fine silver into the peso as did Into the 5-peMta Spanish coin Indicate a purpose to have maintained the two on parity. If so , the purpose was not accorc pitched ; the Porto Rlcan coins quickly fe below the value ot the coins ot the herr government and have since had no estat llihed relation In value to them. The osctl latlon In value a related to gold coin he been constant , rising and falling , as affecte by the state ot exchanges between Port Rica and Its foreign markets. It U unnecessary here to point out at an length the general evil results upon Indus try and commerce of a currency medium i out ot harmony with the world's money i to Induce a widely fluctuating rate of ej change. It may be instructive to cnnsidc them as Illustrated In Porto Rico. Situate as that island now is , with a clrculatln medium void of any established relation I the world's money of commerce gold It exposed to the fullest extent to such ev results. It la highly Important that American ci ; Jtal ihguld flat so obstacle * la 1U Uuwf < to and from Porto Rico , If the United States and the Island alike are to reap the benefits which ought to flow from their proximity , their new relations , and from the enterpris ing commercial spirit of our people. A wide difference In the rat * ot exchange , occa sioned by the use of a differing and unre lated currency , Is a serious obstacle to the transfer of capital , aa It Is to legitimate Industry. The obstacle can and ought to bo removed. TT llond Imiue , Under the caption ot loans and currency on page 24 of this report will bo found par ticulars ( In the way of Information ) as tc the Issue of $200,000,000 3 per cent bonds , authorized by the act of June 13 , 1898. When the bill was reported , which after amend ment became the law , eoruo doubt was ex pressed .by those best acquainted with such matters whether bouda bearing so low a rate as 3 per cent would be sold except at a dis count. There were substantial facts cited In support of such opinion. The then recent declaration of war with Spain had disturbed the always sensitive conditions of trade and finance. The morbidly timid along our east ern and northern coast were In a stale ol moro or less alarm. The slmpler-ralndei depositors In savings banks made withdrawals - drawals of their funds ; the commercial banks In the larger cities sympathetlcall ] suffered through loss of cash reserves te savings Institutions. The rate ot Interest rose ; the price of securities declined. Ever old issues of United States bonds fell to : point where they would yield to the Invcstoi from 3.1 to 3.25 per cent per annum upoi an Investment then made. Such was thi condition of the financial market In the lat ter part of April and the earlier part o : May Ust. That the popular loan method so success fully used on this occasion gave genera satisfaction to the people Is beyond dispute Led to believe whether Justly or unjustly- that on former occasions advantage had beei taken of public necessities by Intermediaries who had made unfair profit between tin government and the people , they hailed wltl satlifactlon this attempt to deal directly wltl the citizen. There was a great moral valui In this , difficult to estimate tn terms o money , yet worthy of consideration in thi mind ot the statesman. Was the operatloi advantageous , also , from on economic stand point ? As already Indicated , a bonus o perhaps five millions could have been se cured by offering the loan to competitive bidding. That was the sacrifice made li order to place the loan directly with thi people at the uniform price of par. It Is evident that an attempt by congrcs to fix the proper rate of Interest lo justtf ; an offer of the government's obligations a par will always be subject to ono of twi dangers : First , If the rate Qf Interest be fixed toi low time and circumstances being consld ered the loan may fall , with the consequence quence of serious derangements to the trcas ury ; or , Second , if the rate of Interest bo flxei too high and the Issue offered at par , whlli It will be eagerly taken , the result may b a great economic waste to the treasury. In submitting my report I feel It my dut ; to impress upon congress , as best I may the Important subject of currency and bank Ing reform. It Is the misfortune of evil conditions t < produce derangement and hinder progress which , It long continued , so accustom th subject of them to their existence as t create In him apathetic Indifference to need ful and healthful reforms. Indeed , It Is ; familiar fact that individuals , families am nations Ignorantly suffer under the lllustloi that the very source ot their affliction I Itself an agency for good. Something Ilk this has marked our flnanclal history to thirty years. Making prcgresa _ In eplte o all obstacles and embarrassments to com merce and industry , we--ascribe the advance ment to the causes 'which have really ham pered and disconcerted the forward and up ward movement. With a financial systcr condemned by the judgment of the mos experienced and wise , both at home au abroad , Us evils Illustrated In dally bust ness and emphasized In' recurring panics , w fall , with an obtuse timidity , to face th questlcns which must be met and rlghtl , solved before Industry and commerce ca be established upon enduring conditions o aacurlty. The argument * against government Issue of paper money as a medium for commor clal exchanges have been fully made an need not be repeated In detail. Its rlgldltj Its failure to meet demands where demon Is most urgent , the dependency of the who ] Industrial structure upon the state ot th revenue and public expenditure these ar Important links In that chain of argument Even In a state of foreign war the civilize demand of both contestants Is for due re spect to private property and Individual con tract relationships. How much moro In state of peace , in a free etate , should prlvat rights and contract relationships be give Immunity from the Incidental , though serl ous , effects now suffered through perturbs tlons in government finances. The menac to our domestic affairs , several times recut ring from a threatened change in the stand ard under which they are carried on , an our foreign trade settled , has been a com panlon evil perhaps the greater ot the twi The cure for these evils la not difficult t find , it lies within the easy range of con gressional action. Nor Is the remedy one t Inflict even temporary pains or penalties o the body politic. The healthful , stluulatln effect of right action in these direction would be experienced with the first sense c assurance that the desired end was to b accomplished. Faper Currency. The proposal to substitute bank Issue for government notes Is opposed with man honest prejudices and assailed by bitter de nunclatlons. The Bret arlso from a fallur to comprehend the true philosophy of paper currency , and must be patlentry con aldered. The latter obscure the queetlo by reckless statements , charging that a ! propositions for currency reform are ban conspiracies to exploit the people. I shall not be outside of my duy If venture to point out. In at least ono In : portant respect , the advantages to the poore districts of the country of a properly con stltuted bank currency. It may bo done b fairly describing the course of the flnan clal movement a it now goes on and b presenting in contrast the movement as I would go on under the conditions advocatei It Is a familiar fact that , In the period c harvesting and crop moving , the currcnc is strongly drawn from the centers to th country districts. When tbls movement 1 over the currency again tends toward th centers. The currency flows to the cente to pay Jeans occasioned by its use an other general indebtedness and also to ae euro the benefit of interest to the countr banker for a portion of his funds , which t a dull period would otharwlso lie unemploye In his hands. At present the currency e sent consists almost entirely of legal tendc note * and treasury note-e that Is to ea ; In the money which the law recognizes s lawful reserve. Thus received by the bank In the roonsy centers , It becomes a recerv for deposits In the relation of one to fou Now , deposits may be Increased by Tear as well as by the deposit of rash. A loafer for ten thousand or a hundred thousand go < to the borrower's credit upon the bank' ' books and swells the deposit account b so much. True , the borrower may chec against this fund , but bis check may all be deposited In the same bank , In whlc case tt Is a mere transfer to another ai count ; or , If It be deposited In anoth < bank and paid In money by the lending ban it is still a transfer. The ( total deposits < all the banks are awrlled by this orlglm roan. la conflraatlon that thU exptailvo mor < ment Is fairly described , I quote from tho' ' New York Herald ot November 13 an fol lows : "Comparing yesterday's ( clearing' ' house ) statement with that of five- weeks ago , It appears that the bunks hold $1,1- 000,000 moro money and have expanded their loans by the surprising amount ot $51,500,000 , the Increase In 'deposits' resultIng - Ing from these two Items being no less than $66,000,000. " It can be easily perceived that this possibility ot Increasing loans ngalost an Inflow of reserve funds In the proportion tion of four to ono Is n temptation to which the city bank ts likely to yield. U must be remembered that this Inward movement of currency from the country occurs at the time of year when commercial activities arc the least and the general requirements for the use of loans In the Interior arc the smallest. The effort ot the banks nt the centers to * Increase their loans causes In terest to fall. The fall in the rate of In terest causes Interest and dividend paying securities to rise. The rise In securities Induces speculative buying. The * specula tive buyer becomes the bank's borrowing customer. The banker ts thus enabled to "put out his funds , " as ho Is apt to term It , though he really does no such thing. He keeps his funds , but , In the way de scribed , ho swells his deposit liability until hU funds on hand arc undo answerable to the rule of one of cash to four of lUbllltlea , or 25 per cent against his "deposits. " It Is In the condition above described , with varying degrees of regularity and Intensity , that the financial status Is found when the crops In the west and south approach bar- i vest that Is to aay , a maximum of loans and deposits ; a minimum In cash reserves. Country HnnkerV UMicrlenee. During the season until then , the country banker has found that his drafts nnd checks on his eastern correspondents , dis tributed to his customers , supplied their needs for Instruments of exchange and pay ment ; but ho finds that for the payment of farm wages , the purchase and transfer of farm products , such Instruments are not adequate ; cash Is required for these pur poses , either In metallic money or paper currency. This forces him to make requisi tion In the form of money by express on his eastern balances. Nay , more ; If crops be largo and prices good ho Is forced to sup plement his own resources by borrowing for a period nt the centers. His correspond ent at 'the center , In meeting his rcqulsl- I tlons for the money due his country cus tomer , Is obliged to take It from what had before constituted his legal reserve. Tills disturbs the equilibrium of relationships. To recover his position ho turns upon the street nnd calls In a portion of his loans. If the Interior banker , after thus calling for the balances due him , asks In addition for a loan , the city banker Is often obliged to Inform him that "money Is very close" and ho cannot accommodate him. It must be noted also that the effort of the city banker to restore his Impaired reserve ny calling money from the street does not ac complish that direct result. There Is no money "In the street ; " It Is nil .In bank vaults and the total stock cannot bo aug mented except by Inducing It to come In from without. What does result Is a forced liquidation , a fall In prices of securities , n rise In Interest sufficient to Induce outside money to como In. In this process the mer chant and the manufacturer find tt difficult to negotiate their credits. They also are told "money ts tight" and lhat they must withhold applications for discount favors. I forbear to follow Into furtncr detail the unprofitable and vexatious movement. Gradually , after more or less strain and anxiety , sometimes bordering on panic , sometimes resulting In panic , a readjust ment Is secured. Crops from the Interior not seldom forced from the producer's hands , with little regard to price , , because of his Inr/llty" to borrow from 'his ' local banker move to the seaboard. The strain on the country Is relaxed. Again currency In the form of ' 'reserve funds" jnoves to the cen ter. Again one dollar thus received be comes effective as reserve for four dollars of liability. Money Is quoted easy , as the prospect for summer dullness becomes as sured. "Tho street" breathes easier , stocks and securities become "firm" and the move ment toward tin expansion in loans with Its attendant phenomenon of an Increase In deposits Is again observed , to be again fol lowed by restriction .and probable distress as the active season In productive Industry and trade again appears. Whoever has followed this delineation of our financial movement , and those who are familiar with the facts which are thus portrayed , ought not to have trouble In perceiving that the bottom cause of the Irregular and deranging effects described is to bo found In a fixed volume of paper money clothed with full powers of a legal tender. Upon thle money Itscrf a credit obligation other credit obligations , In the form of bank deposits through bank loans , may be built up in the proportion ot four to ono. With the volume of paper money thus fixed with no natural movement to ward Its retirement when not needed In legitimate trade the tendency to build the four-story structure upon it as a perma nent base Is Irresistible. The withdrawal of the base by those who really own tt causes the structure to vibrate and threatens It with a fall. If It be conceded that the legal tender money Issued by the government does not possess the qualifications to make It a proper factor In the country's exchanges of products and manufactures ; if the fact also be admitted that It is a deranging and dis turbing factor In Its relation to Industry and commerce , then the time has como to sub stitute for It a currency which will ade quately , economically and safely meet the ever-growing needs of the country , rapidly developing , as It Is , In the power of pro duction , In the number ofIts , people and the importance ot its domestic and foreign trade. War Taxes. The report of the commissioner of Internal revenue possesses peculiar Interest , Indi cating , as it does , the operation of the war revenue act of June 13 , 1898. It shows1 quite clearly that the aggregate revenue to be de rived therefrom win form a smaller total than was estimated by the more sanguine ot Its supporters. The commissioner's estimate of $100,000- 000 from this source seems to be fairly Jus- tilled by the results to the treasury during the period from July 1 to the present time. His report goes also to show the friction and embarrassments which have arisen from the need of Interpreting obscurities In the act Itself and the application of such Interpretation to specific cases coming under the same general head , yet differentiated from each other by more or less Important particulars. Many complaints have arisen from those unreconciled to such interpreta tions or applications , and , granted a well balanced relation between revenues and ex penditures , It might be well to consider the propriety of repealing eorao of the more vexatious features ot the act. Until moro rattled conditions , however , as to extraor dinary expenditures for army and navy are reached , even such repeal cannot be recom mended by this department. Some verbal amendments , making more clear the Inten tions ot congress , are to be desired , and representations In this direction may be made the subject ot a separate communica tion to congress at an early day. | A Ilnce AKiiliml Flrf. I After ten days' fight to avoid death , the crow of a steamer from Spain recently ar rived In Daltlmore. In mldocean It was dis covered that tlamea were raging In the ves sel's hold. For ten long days the crew bravely fought the flames. If men would fleht as persistently against disorders of the stomach and digestive organs , there would be fewer premature deaths. The best weapoq for such a fight Is Hosteller's Stomach bit ters. U Is the greatest of tonics and the besi ot remedies for kidney , liver , bladder ano klood disorder * . A. T. Mahan Contributes to McCt.t'ltK'8 MAO A * KINK , beginning with the December numbera poi'lcs ot nrtlelp" on The War on Sea anil Its Lessons. Caplnln Mnhnn win a inumlwr of the Nnvaj Strntesry Hoard. Dav by day ho HtmlleJ Tlic War In Its Making uiul liulped to make it. Ho Im * . thuroforo , I'irst-lmnii Command of IMuns and F.vents , po8- piblo to no other writer. Cnitnin | Mnhnn Is recognized nbrond us well ns nt homo to bo the .Foremost Naval Authority in thG world. nnd his articles tire onporly nwnlteil In ' Europe- and Atnurlun as important con tribution ! ) to the lilntory of naval war fare , and also fur their supjestions and indications a ? to ships , armament * , opo- ratlons and strategy of the future. Those- articles will emphatically con stitute THE GREATEST CONTRIBUTION TO THE HISTORY OE THE WAR. The first article- explains what determined the direction and nature of The First N.tvul Movements , Knowing how , if the motive of the war had been dilToiont , the movements would have been different also. This series begins in the DUCEMllEIt iNUMUERof McCLURE'S Now on Sale Everywhere. 10 Cents a Copy. $1.00 a Year THE S. S. McCLURE CO. , New York City. TWENTIETH OUT FOR A TRIP Another Begiment of Infantry to Be Bent to the Philippines. GENERAL PATTERSON ITS COMMANDER Former Lieutenant Colonel of ( he Twenty-Second Iln > a Ulinnce to Take ilic IOIIK Journey \en > of the Deportment. Dispatches from Leavcnworth announcing the preparations of the Twentieth Infantry to move to the Philippines have some Inter est to Omaha , although that regiment has never been stationed here , Brigadier Gen eral Patterson , formerly lieutenant colonel of the Twenty-second Infantry , will become colonel of the Twentieth when he concludes his work as chief mustering officer for the state of New Jersey , In which position ho takes the rank of brigadier general of volun teers. It he will go with his new command on its contemplated Journey he takes the title of colonel in the regular array , and be may again have an opportunity to show the meUl of which he is constituted. He was with the Twenty-second when It went to Cuba , and took part in the fight at El Cancy , where this regiment suffered such heavy loss , and where Colonel Charles A. WlkofI tret his life. General Patters'n was ccrloualy woundtd In that engagement , being shot through the thigh , and a number of his brother officers were also wounded. Some of General Patterson's friends believe , however - ever , that he will relinquish the command of the regiment to a younger man , If It shall be ordered on so long a journey as that mentioned in the Leavenworth dispatch. The accounts of Major Katz , U. S. V. , chief commissary of the Department of the Missouri , ore being examined by Captain Beck , inipector general , previous to the office being turned over to Major Duval , U. S. A. , who Is hero to relieve the former officer , The two oHlccrs visited the govern ment storehouses yesterday to check np stores there. At the last Inspection of the office the commissary's accounts were found In excellent shape , and with this record no delay Is anticipated In making the transfer promptly. Major Katz left yesterday after noon for Washington. lie Has Earned n Re t. Lieutenant Moore , U. S. A. , who has been one of the mustering officers taking care of the Second Nebraska , has applied for a teavo of absence that he might more thor oughly recuperate from the effects ot Cuban fev r , but was unable to obtain It as so many officers arc now on leave. The lieu tenant wont to Cuba with the Twenty-sec end Infantry , and became Infected with malaria while there , which produced two or three successive attacks of fever , and while he has been able to attend to bin duties as mustering officer. It has been con siderable of a task , as ho has not at any time been thoroughly recovered from his Illness. One of the greatest duties Captain Beck has had to perform as Inspector general ol this department has teen to establish some records for his office. Under army regula tions Issued in 1S95 the position of depart ment Inspectors was aboltehed , and the work was done by district Inspectors. Aftei a trial of ttie now orders for a few yean they wore found to bo unsatisfactory and a return was made to the department In spector. In the meantime the records o ! the office had been removed and the roomt occupied by the Inspector pre-empted by thf judge advocate of the department. Previous to the appointment of Captain Beck the in spections were made by , an officer from th < Department ot Colorado , which Is tempo' rartly allied with this department , and thi records were kept at Denver , and when thi captain began his work he had nothing li his office with which to begin. He has ba ( to dig for everything , and it was not untl within the last few days that ho secured i full quota ot the blanks ho is required t < uso. uso.Major A S. Towar , U. S. A. , chief pay master ot the Department of the Missouri who is away on a leave of absence , Is nov visiting In Detroit. Lieutenant Colonel Charles Porter Twcnty-eecond Infantry , who is expected t arrive at Fort Crook within a few days , I now at Washington on a leave of absence ' Ho was appointed to the Twenty-second t nil the vacancy caused by the promotion o i General J. II. Patterson , but has not ye ! joined the regiment. Colonel Porter at on time was stationed at Fort Nlobrara. Lieutenant W. S. Wood , late adjutant o the Ninth cavalry , who has just been ap pointed captain and quartermaster in recog nltlon of his gallant services In the Santlag campaign , Is a personal friend of Captali Hutchraon , adjutant general ot this depart ment , and succeeded the captain as adju tant of the Ninth cavalry. iauiluatton and EnlUtmeuti. There are now being examined by th- - various promotion boards In different sec tlons of the country about thirty captain and fifty first lieutenants of Infantry wbi are up for promotion. The aggregate enlistments In tbo army a city stations during tbo 9DtU ot Qctgbe was 1,982 , with 7,270 rejected ; enlistments at posts and In the field amounted to CCS , with 250 rejections ; and enlistments under the special recruiting service were 980 , with 1,757 rejections. Lieutenant Colonel Daniel D. Wheeler , deputy quartermaster general , U. S. A. , formerly chief quartermaster of the Depart ment of the Missouri , and well known In this city , has been assisted to duty as special Inspector of the quartermaster's de partment , and while on this duty will have the rank of colonel. Major B. A. Kocrper , chief Burgeon of the Dfpartment of the Missouri , left yesterday afternoon for Fort Leavennorth , where ho will sit as president of an examining board to examine Second Lieutenant William Yates , First cavalry , for promotion. The major will return to Omaha Thursday. .V general court-martial has been ap pointed to mc < ! t at Fort Ulloy , Kan. , on Thursday , or as soon thereafter as practi cable , to try such cases as may be brought before it. The detail of the court is as follows : Captain William W. Wetherspoon , Captain Robert K. Evans , Captain Daniel F. Anglum , Fim Lieutenant Dona T. Merrill , Second Lieutenant Hugh A. Drum , Second Lieutenant Van Leer Wills and Second Lieu tenant Glenn H. Davis , judge advocate , all of the Twelfth infantry , nnd First Lieuten ant Edmund S. Wright , First cavalry. General order No. 20 , from the Department of'the ' Missouri , announces the arrival of Ma jor J. II. Duval to assume the duties ot chief commissary of the department. Captain Frederick T. Van Llew , Second Infantry , well known In Omaha In connec tion with his work with the Thurston Rifles , has had his leave of absence ex tended thirty days on account of sickness. COMMERCIALCLUB MEETING _ KieenUve Committee AdontM n Ileoo- Intlon In Favor of n Lower Rate for 1'arcel" 1'iiitiiKu. At a meeting of the executive committee of the Commercial club yesterday afternoon a resolution was adopted calling upon congress to provide for a lower rate for parcel pont age on packages going to foreign countries , and also for lower rates for use in this coun try. The great need of this reduction Is set , forth In the preamble , and the action of ex press companies in refusing to pay the war revenue stamps Is given as a special reason why the government should take steps to increase and popularize this particular branch of the postal service. A letter was read from Thomas R. Cutler , i manager of the Utah Sugar company at Lehl , in which he says that cattle and sheep can be fattened rapidly on the pulp from the ' sugar beet. Ho eays cattle will take on 400 pounds in four months on this pulp. | A circular from the Texas Board ot Trans- portatlon to express companies doing busi ness In that state was read , In which tha board notifies the companies they must pay the war revenue tax on packages consigned to them for transportation , and that refusal to do so will result in a fine ot $500 for each offense. Matters pertaining to the exposition next year vrero discussed Informally , but no ac tion either for or against the enterprise was taken. It was announced In the meeting that thi jobbers of the city would meet at the Com mercial club this afternoon at 1 o'clock to discuss the exposition project. Bx-I'renldent Cleveland In a Colllnloa NEW YORK. Dec. 6. The steam yacht Onclda. having on board Its owner , E. C. I Benedict , and ex-President Orover Cleve land , was in collision with a transfer float off the Battery wall In tbo upper bay to day. The yacht , which sailed on yesterday from Norfolk , had Us bowsprit carried I away. Messrs. Cleveland and Benedict | landed at the Battcrv and the yacht con tinued on its way up the East river. Wo have a fresh stock of Hilton's No. t. Order of us. fWlillMAN & M'CONNELli DRUG CO ,