At the close of the fiscal year 1917 the available cash balance in the general fund subject to warrant was $967,247,123.48, an increase of $788,755,707.90 as compared with that of the preceding year. This increase is verified by the net results in all accounts of receipts and disbursements shown on previous pages of this report, which are brought together here:

The balance in the Treasury at the end of each month from January, 1910, is stated in Table No. 17, page 413, of the appendix, and for July 1 in each year since 1910 in the following statement:

Available cash balance (including the reserve fund) on the dates named.

The accumulation of gold in the Treasury was continuous from the beginning of the fiscal year 1917 to April 11, 1917, when it attained a maximum at $2,445,875,313.94. During the remainder of the year withdrawals of the precious metal gradually reduced the Treasury holdings to $2,325,472,035.87 on June 30, 1917. The imports of gold during the fiscal year were $977,176,026, the exports $291,921,225, and the excess of imports $685,254,801.

The total amount of gold in the Treasury on July 1 in each year from 1910, set apart for the respective uses, is shown in the statement following:

The Treasurer of the United States held in trust at the close of the fiscal year 1917 United States bonds to the amount of $671,333,060 as security for the circulating notes of national banks, a decrease of $19,107,870 as compared with that of 12 months earlier. The securities pledged for the safekeeping of public deposits in the depositary banks amounted to $43,054,350.

The kinds of bonds in the custody of the Treasurer and the changes therein during the fiscal year 1917 are recorded in the table following:

Bonds held for national banks, close of June, 1916 and 1917, and changes during 1917.

Bonds held for Federal reserve banks, close of June, 1916 and 1917, and changes during

BONDS HELD AS SECURITY FOR POSTAL-SAVINGS FUNDS.

At the close of the fiscal year 1917 the Treasurer of the United States held in trust, under the provisions of the act of June 25, 1910, bonds and securities amounting to $169,987,745.12 as security for postal-savings funds deposited in designated depositaries.

The kinds of securities held and the changes therein during the year may be studied in the annexed table:

Bonds held as security for postal savings funds, close of June, 1916 and 1917, changes during 1917.

and

The board of trustees of the Postal Savings System will accept as security for postal savings deposits, at the respective values herein fixed, negotiable interest-bearing bonds or securities of the following classes, viz:

(a) Bonds and interest-bearing certificates of indebtedness of the United States, bonds of the Philippine Islands, of the District of Columbia, and of Porto Rico, and Farm-Loan bonds authorized by act of Congress approved July 17, 1916 (39 Stat., 360), will be accepted at their par value.

(b) Bonds of any State of the United States and of the Territory of Hawaii will be accepted at their market value, but if such market value is above par they will be accepted at their par value.

(c) Bonds of any city in the United States having a population of over 30,000, as shown by the latest annual report of the Bureau of Census, entitled "Official Statistics of Cities having a Population of over Thirty Thousand," which has been in existence for a period of 10 years, which for a period of 10 years previously has not defaulted in the payment of any part of either principal or interest of any funded debt authorized to be contracted by it, and whose net funded indebtedness does not exceed 10 per cent of the valuation of its taxable property, to be ascertained by the last preceding valuation for the assessment of taxes, will be accepted at 90 per cent of their market value, but if such market value is above par, they will be accepted at 90 per cent of their par value.

(d) Bonds of any other city, town, county, or other legally constituted municipality or district in the United States, which has been in existence for a period of 10 years, which for a period of 10 years previously has not defaulted in the payment of any part of either

principal or interest of any funded debt authorized to be contracted by it, and whose net funded indebtedness does not exceed 10 per cent of the valuation of its taxable property, to be ascertained by the last preceding valuation for the assessment of taxes, will be accepted at 75 per cent of their market value, but if such market value is above par, they will be accepted at 75 per cent of their par value.

Bonds of the several classes described in paragraphs (b), (c), and (d), to be acceptable as security, shall be the general obligations of the States, Territories, counties, cities, towns, or other political divisions by or in behalf of which they are issued, and payable, either directly or ultimately, without limitation to a special fund, from the proceeds of taxes levied upon all the taxable real and personal property within the territorial limits of such political divisions.

The term "net funded indebtedness," for the purposes of paragraphs (c) and (d), is hereby defined to be the difference between the legal gross indebtedness of a city, town, county, or other municipality (including the amount of any school district or other bonds which depend for their redemption upon taxes levied upon property within the municipality) and the aggregate of the following items:

(1) The total of all sinking funds accumulated for the redemption of such gross indebtedness, except sinking funds applicable to bonds hereafter described in this section.

(2) The amount of outstanding bonds or other debt obligations made payable from current revenues.

(3) The amount of outstanding bonds issued for the purpose of providing the inhabitants of a municipality with public utilities, including the supplying of water or the construction of subways and tunnels for railways: Provided, That evidence is submitted showing that the income from such utilities is sufficient for maintenance, for payment of interest on such bonds, and for the accumulation of a sinking fund for their redemption.

(4) The amount of outstanding improvement bonds, issued under laws which provide for the levying of special assessments against abutting property in sufficient amounts to insure the payment of interest on the bonds and the redemption thereof: Provided, That such bonds are direct obligations of the municipality and included in the gross indebtedness of the municipality.

(5) The amount of outstanding bonds issued by a political subdivision, funds for the payment of which are donated by the State: Provided, That evidence is submitted showing that such funds are sufficient in amount to insure the payment of interest on the bonds and the principal thereof at maturity.

Obligations of the general class embracing what are commonly known as "revenue bonds," "temporary bonds," "temporary notes,' "certificates of indebtedness," "warrants," and the like obligations, whether issued in anticipation of the collection of taxes, assessments, or other revenues, or of the sale of bonds or other obligations, or for similar purposes, will not be accepted as security for postal savings deposits: Provided, That, in applying this regulation, consideration will be given to the legal status of the obligations submitted rather than to the nomenclature employed in designating such obligations: And provided further, That this regulation shall not apply to obligations of the United States Government.