SPURIOUS ISSUES DETECTED IN 1910. There was a falling off in the nominal value of the counterfeit coins and paper currency detected at the Treasury and subtreasury offices during the past fiscal year. Comparison, by items, for the past two fiscal years follows: The transactions in the special trusts held by the Treasurer during the fiscal year 1910 were limited to two accounts, viz, Panama Railroad notes, and bonds for contractors of the District of Columbia. The contract with the North American Commercial Company for taking fur seals in Alaska terminated June 30, 1910. The United States bonds held for that company at the close of the last fiscal year under special provisions of law have since been surrendered to the company. The kinds of obligations and amounts held on each account are recorded in the statement following: SPECIAL TRUST FUNDS IN THE CUSTODY of the Treasurer OF THE UNITED STATES AT THE CLOSE OF THE FISCAL YEAR 1910. In explanation of the foregoing special trusts it may be said that renewed interest is awakened in effecting a settlement with the States of Louisiana, North Carolina, and Tennessee for the unpaid matured bonds of those States belonging to the United States. It is believed that settlement of these unadjusted accounts will be reached in the near future. The bonds held for the Manhattan Savings Institution are in trust for that institution as indemnity for certain stolen bonds, as provided by act of December 19, 1878 (20 Stat., 589), and will be held for such time as, in the judgment of the Secretary of the Treasury, will secure the Treasurer of the United States against loss. Recommendation has been made to Congress for authority to return to the State of Louisiana the bonds of that State captured at Shreveport by the Union forces during the war of the rebellion, now held as a special deposit for the Secretary of War. The special trust held for the Secretary of the Treasury is composed of notes of the Panama Railroad Company drawing 4 per cent interest payable to the United States, and is security for money advanced for the equipment and construction of said railroad. The special trust held for the District of Columbia represents, first, the moneys retained from contractors under provisions of law and invested at the request and risk of said contractors; second, obligations that belong to the District of Columbia. DISTRICT OF COLUMBIA. The transactions of the Treasurer of the United States, ex-officio commissioner of the sinking fund of the District of Columbia, pertaining to the affairs of the District, are fully set forth in a separate report. During the fiscal year 1910 the bonds of the funded debt retired amounted to $622,050, resulting in the reduction of the annual interest charge by $22,704.82. From July 1, 1878, to the close of the fiscal year 1910 the bonded. debt was increased by the issue of 3.65 per cent bonds amounting to $1,254,050, and decreased by the operation of the sinking funds and otherwise $13,868,600, making a net reduction of $12,614,550, and of the annual interest charge $669,297.47. The interest-bearing bonds outstanding June 30, 1910, amounted to $9,492,100, bearing 3.65 per cent interest. The retentions from 47 District of Columbia contracts were canceled during the year by the return to the contractors of $13,970 in bonds and $35,490 in cash. At the close of the fiscal year 1910 the 10 per cent guaranty fund amounted to $255,915.70 and was credited to 66 separate contracts, and is represented by $175,210, in bonds purchased at the request and risk of the contractors and $70,344.29 uninvested cash. The unsigned 3.65 per cent bonds of the District of Columbia, amounting to $11,308,450, are in the vaults of the Register of the Treasury. The securities of the District of Columbia in the care and custody of the Treasurer of the United States are enumerated on page 37 of this report. LEGISLATION RECOMMENDED. It is suggested that recommendation to Congress be made in such form as may be deemed advisable for legislation that will authorize favorable action on the following subjects: 1. Gold certificates for $5.-There is necessity for increasing the resources of the Treasury for the issue of small denominations of currency. It is believed that the issue of gold certificates for $5 65872°-FI 1910-11 instead of restricting the issue as now to $10 and above will enable the Department to respond to the demands for small denominations. 2. Gold certificates for gold bullion. It appears desirable from an economical point of view to issue gold certificates upon deposits of gold bars, payable in gold coin, provided that the issue of such certificates does not exceed a reasonable per cent of the total volume of gold certificates. The issue of such gold certificates should result in the saving of an appreciable part of the expenses attending coinage, and at the same time would permit us to have available at exporting points gold bars always ready for export. 3. Recoinage of uncurrent silver dollars.-The accumulation of uncurrent silver dollars in the Treasury calls for some action whereby such coins may be made available to meet current demands. 4. Relief to the Treasurer of the United States for unavailable funds now carried in his general account.-There still remain items of unavailable funds heretofore reported, Table No. 22, page 180, amounting to $1,483,299.25, which have passed from the control of the Treasurer without fault or negligence on his part and from which he should be relieved. 5. Increased facilities for exchanging worn and defaced United States paper currency for new.-There is a constant and widespread interest which advocates a cleaner and more sanitary currency. The sentiment is a laudable one and should be attainable, because the expense is but a trifle as compared with the beneficent results. The Government can well afford to replace its paper issues when unfit for circulation. 6. Increase of the 5 per cent bank-note redemption fund.-Experience shows that the 5 per cent bank-note redemption fund is not adequate for the purposes intended. In January, April, May, June, and July the Treasury had to advance a large sum for the redemption of notes on the security of the notes. As the notes are not obligations of the Treasury the banks should be required to deposit a greater amount to provide for current redemptions. The present incumbent assumed the duties of the office of Treasurer of the United States upon the termination of the administration of Hon. Charles H. Treat, November 1, 1909. The transfer involved an examination of all moneys, securities, and other evidences of value which came into the direct charge of the Treasurer, amounting to $1,260,134,946.883, the maximum sum so transferred in the history of our Government. The examination was conducted in a very thorough manner, and on its completion the Department had, from the report of the committee in charge, the most satisfactory assurance that the funds transferred were absolutely correct. This result is perhaps the best comment on the zeal and ability which the staff, chiefs of division, and clerks of every grade in the office have exercised in the discharge of their responsible duties, and by which they have merited the confidence of the present Treasurer no less than that of his prede cessors. Respectfully submitted. Hon. FRANKLIN MACVEAGH, LEE MCCLUNG, Treasurer of the United States. Secretary of the Treasury. |