The net result of the ordinary transactions of the Government for the fiscal year 1906 was a surplus of $25,669,322.61 as compared with a deficit of $23,004,228.60 for the preceding year. The interest-bearing public debt was increased $800, and the debt bearing no interest. $10,165,075.20, caused by net additions of lawful money to the national-bank note redemption fund. The increase of the debt proper was $10,165,875.20. The trust funds increased $52,380,900, and amounted to $1,044,638,869 at the close of the fiscal year 1906. Under the provisions of the act of March 14, 1900, $53,032,400 two per cent consols of 1930 were issued in exchange for bonds of the four per cent loan of 1907 and the three per cent loan of 1908. The excess of revenues over expenditures and the additions to the national-bank note redemption fund in excess of redemptions advanced the available cash balance to $180,689,354.82 at the close of the fiscal year, an increase for the year of $35,211,862.93. For the first quarter of 1907 the revenues were $5,871,314.27 in excess of the expenditures, while in the first quarter of 1906 the expenditures were $9,574,241.56 in excess of the receipts. The national-bank depositaries were utilized during the fiscal year as a medium through which the excessive accumulation of money in the Treasury was restored to the channels of trade. The balance in banks to the credit of the general fund July 1, 1905, was $65,084,246.87, against which there was an unpaid call for $14,659,500. By the end of July this balance became $52,944,109.68, and remained practically at that figure until the end of February, when additional deposits of public moneys to the amount of $9,941,000 were apportioned and made in depositary banks in important centers. In the early part of April an unusual stringency in the money market was relieved by the temporary increase of public deposits with depositary banks to facilitate the importation of gold. In the import movement thus assisted more than $49,000,000 in gold was added to the general stock of that metal in the country. On May 1, public moneys to the amount of $4,220,000 were placed in depositary banks in the District of Columbia, to avoid a local stringency likely to arise from the collection and deposit in the Treasury of taxes during that month. By these measures the balance in banks to the credit of the general fund on May 5 was $102,708,123.19, the highest point reached during the fiscal year, after which it was gradually reduced to $81,101,775.33 by June 30, 1906. During the first quarter of 1997, additional temporary deposits of public moneys were made in depositary banks to enable them to import gold, which, by October 15, resulted in an addition of $34,119,000 to the stock of that metal. Also on the 27th of September, owing to the continued accumulation of money in the Treasury in excess of its immediate requirements, $26,000,000 of the public moneys was apportioned and placed in existing depositary banks, located in 26 of the leading cities of the country, with notice to the banks that it would be called for after February 1, 1907. The balance in banks to the credit of the general fund on October 1 was $124,088,475.42. There was an increase of $186,866,727 in the monetary stock of the country during the last fiscal year. The growth in gold was $118,050,777, in silver $5,450,396, and in national-bank notes $65,392,554, while Treasury notes declined $2,027,000. The money in circulation July 1, 1906, amounted to $2,736,646,628, a per capita circulation of $32.32. By October 1 the total circulation had increased to $2,812,133,694, or $33.08 per capita, 43.6 per cent. of this amount being gold. The Treasury holdings of gold at the close of the last fiscal year was $807,051,690.30. By October 15 this increased to $871,893,899.77, the largest amount of the precious metal ever held in the Treasury. The United States paper currency issued during the fiscal year 1906 amounted to $629,896,000, and the redemptions were $577,445,100; gold certificates increased $42,269,900, silver certificates $12,208,000, while Treasury notes decreased $2,027,000. The average cost of each piece of United States paper currency issued and redeemed was 1.571 cents, and the annual cost of maintenance of the currency issued by the National Government averages about one-fifth of 1 per cent of the amount outstanding. The United States bonds pledged to secure bank circulation amount to $520,605,210, an increase of $52,538,270 during the fiscal year. The United States and other bonds held to secure public deposits aggregated $95,575,725, an increase of $15,170,775 since June 30, 1905. The redemptions from the reserve fund during the year were as follows: United States notes, $11,452,195; Treasury notes, $192,810. The redeemed notes were immediately restored to the general fund in exchange for gold, and the reserve was thus maintained at the amount fixed by law. The volume of national-bank notes increased $65,392,554 during the last fiscal year, but, notwithstanding this increase, only $296,292,885 were presented for redemption as against $308,298,760 in 1905. The expenses incurred for such redemption were $250,924.24, which have been assessed on the banks at the rate of $0.84528 per $1,000 of notes redeemed. On March 1, 1900, the paper circulation of the denominations of $10 and under outstanding was $720,062,845, and by October 1, 1906, it increased to $1,087,788,228, an average annual increase of about $56,000,000. But the needs of business, measured by the appeals made to the Treasury for small notes during the last fiscal year, makes it clear that the supply is not equal to the demand. Under existing law, the National Government provides nearly three-fourths of the paper circulation, but the resources for the issue of small denominations are practically exhausted, and can be adequately enlarged only by legislation. The receipts of moneys for redemption and exchange during the fiscal year 1906 were $1,104,449,492, as against $1,150,625,763 in 1905. The shipments of silver coin at Government expense for transportation during the fiscal year 1906 were $41,562,828 in standard silver dollars and $29,378,631.40 in subsidiary coin. The average rate for transportation was $2.15 per $1,000. The San Francisco earthquake, April 18, 1906, was followed by a fire which destroyed the greater part of the city. The subtreasury was burned, and the treasure in its vaults was buried and for a time was inaccessible. The United States mint, by the vigilance and heroic action of the superintendent and employees, was saved with its $300,000,000 of coin and bullion. Contributions for the relief of the stricken city, as well as moneys withdrawn by the banks of San Francisco from their Eastern correspondents, were received at Treasury offices to the amount of $37,360,344.44, and through the medium of the general fund payments in like amount were made by the mint at San Francisco upon telegraphic advice from the Treasurer of the United States. The vaults of the subtreasury were opened May 23, 1906. The contents were found intact and uninjured. NATIONAL BANKS. From the establishment of the national banking system in 1863 to September 30, 1906, national banking associations to the number of 8,380 were chartered, of which 6,189, with capital of $841,864,775, are in active operation. During the period in question 448 national banks failed and 1,743 were placed in voluntary liquidation. From statistics compiled by the Comptroller of the Currency it is shown. that creditors of insolvent national banks have received, on an average, 78 per cent on their claims. Over one-third, or 37.2 per cent, of the national banks organized were chartered between March 14, 1900, and September 30, 1906. This rapid increase, an average of nearly 40 banks for each calendar month, was due to the legislation embodied in the act of March 14, 1900, which authorized the incorporation of banks with minimum capital of $25,000, the issue of circulating notes to the par value of the bonds deposited, and reduced the semiannual tax on circulation from one-half to one-fourth of 1 per cent. The authorized capital of the 3,116 banks chartered since March 14, 1900, was $178,763,300, and the amount of charter bonds $44,831,520. Two thousand and thirty-six banks, or practically two-thirds of the banks chartered in this period, were organized with a capital of $25,000 each. Banks of larger capital to the number of 1,080, with a total authorized capital of $125,682,800, were organized in this period under authority of the act of 1864. Of the total number of banks chartered since March 14, 1900, 347, with capital of $23,041,800, were conversions of State banks; 1,024, with capital of $65,434,000, were reorganizations of State and private banks, and 1,745, with capital of $90,287,500, were banks of primary organization. During the year ended September 30, 1906, 450 banks, with aggregate capital of $21,260,500, were chartered, of which 309 were banks with $25,000 capital, and 141 with capital of $50,000 or over. Fiftythree of these banks were conversions of State banks, 134 were reorganizations of State and private banks, and 263 were primary organizations. Since October 1, 1905, 82 national banks, with capital of $13,523,000, were placed in voluntary liquidation, and 14 banks, with capital of $1,230,000, were closed by order of the Comptroller of the Currency. Three closed banks, with aggregate capital of $125,000, were restored to solvency and authorized to resume business. The number and capital of national banks organized in each State and geographical division, from March 14, 1900, to September 30, 1906, are shown in the table on the following page: |