SHIPMENTS OF CURRENCY FROM WASHINGTON. The shipments of currency from Washington are governed largely by the amount of worn and unfit paper money presented for redemption. As a new record for redemptions was made in the last fiscal year, there was a large increase in the number of packages and amount of currency sent from the Treasury. Comparison of the shipments for the fiscal years 1916 and 1917 may be observed here: RECOINAGE IN THE FISCAL YEAR 1917. The amounts of uncurrent gold, silver, and minor coins reminted during the fiscal years 1916 and 1917, were as here stated: REDEMPTION OF FEDERAL RESERVE AND NATIONAL CURRENCY. During the fiscal year 1917 there was presented to the National Bank Redemption Agency for redemption currency amounting to $462,444,938, in 38,323 packages. Of the amount received, $406,462,419 was in national-bank notes, $54,061,530 in Federal reserve notes, $1,307,770 in Federal reserve bank notes, and $613,219 in United States currency. The nationals amounted to 56 per cent of the average circulation outstanding. Of the amount presented, 32.32 per cent came from banks located in New York City. The largest sum received during a month was $58,335,295 in January, 1917, and the smallest $31,057,799 in April, 1917. Payment for notes redeemed was made as follows: In Treasurer's checks, $94,416,415; in new United States currency, $273,264,891; in gold, silver, and minor coin, $21,800; and by credit of $89,744,190 in various accounts. The notes assorted amounted to $462,782,000 and were delivered as follows: 12, 430, 300 23.01 Unfit for use delivered to the Comptroller of the Currency for destruction.... 41, 582, 865 76.99 Federal reserve notes unfit for use to the amount of $55,042,725, mostly cut in halves before shipment, were sent to the agency by the issuing banks during the year for credit of their respective Federal reserve agents. As no payment was made by the Treasury in redemption of these notes, the agency did not report them as a cash receipt, but they were counted and verified and then delivered to the Comptroller of the Currency for credit of the Federal reserve agents, who reimbursed their banks out of the gold and lawful money deposited with them for the retirement of such notes. The expenses of redemption amounting to $420,160.42, have been assessed upon the national and Federal reserve banks, as follows: This departure from the method of making previous assessments is to effect a more equitable apportionment of the expenses and, while it has not been practicable in this assessment to adjust all items of expense to an exactly equitable basis, it will be feasible for 1918, and it is expected that the apportionment of expenses for that year will be as fair to all the banks as it is possible to make it in view of the peculiar conditions attending the redemption of their notes at this office. SPURIOUS ISSUES DETECTED IN 1917. In handling the vast amount of money of all kinds received in the Treasury during the fiscal year 1917 the experts detected of spurious issue only $10,698.50 in nominal value in all kinds. SPECIAL TRUST FUNDS. The Treasurer of the United States is custodian under provisions of law or by direction of the Secretary of the Treasury, of several special trusts, consisting of bonds and other obligations. The kinds of bonds or obligations held on each account and transactions therein during the fiscal year 1917 are set out in the statement following: United States bonds held under special provisions of law: Manhattan Savings Instition.... 335,666.663 75,000.00 $37,000.00 58,000.00 335,666.663 75,000.00 Held for the District of Columbia: United States bonds for account Dis trict of Columbia sinking fund.....: Bonds for account District contractors.. Chesapeake & Ohio Canal bonds.. Board of audit certificates... Held for the board of trustees, Postal Sav- Captured bonds of the State of Louisiana Held for the Secretary of the Treasury: Certificates of indebtedness to secure loans to foreign governments under act of Congress approved Apr. 24, 1917. Miscellaneous bonds held to secure receivers funds deposited in banks.. Total.... 176,250.00 84,285.00 20, 134. 72 2,301,680.00 545, 480.00 46,000.00 3,247, 332. 11 885,000,000.00 312,000.00 6,826, 648. 493 886, 732, 180.00 176,250.00 893, 382, 578. 49J The State of North Carolina has authorized and appointed commissioners to take under consideration a plan for settling the indebtedness of that State to the United States, but Congress postponed action on a measure providing for representatives on the part of the Government. Commissioners representing the Government and the State of Tennessee, under provisions of law, have now under consideration a plan for settling with that State. It is apparent that some progress has been made toward a settlement with the two States named in the foregoing for the unpaid matured bonds of those States belonging to the United States. 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 by the Secretary of War. The special trusts held for the Secretary of the Treasury are composed of notes of the Panama Railroad Co., drawing 4 per cent interest, payable to the United States, and is security for money advanced for the equipment and construction of said railroad; and interest-bearing obligations of foreign Governments payable to the United States, purchased at par from such Governments engaged in war with the enemies of the United States, act of April 24, 1917. The special trust held for the District of Columbia represents, first, investments on account of the sinking fund; second, the moneys retained from contractors under provisions of law and invested at the request and risk of said contractors; and, third, obligations that belong to the District of Columbia. The special trust held for the board of trustees, Postal Savings System, consists wholly of postal savings bonds, representing investments made by said board as described on page 19 of this report. DISTRICT OF COLUMBIA. The transactions of the Treasurer of the United States, ex officio commissioner of the sinking fund of the District of Columbia, are fully set forth in a separate statement. During the fiscal year 1917 the funded debt retired amounted to $130,600, and there was purchased for this fund $631,000 in United States bonds, and $6,000 was deposited with the Federal reserve bank of Richmond, Va., on account of a subscription to the First Liberty Loan of 1917. This reduces the bonded debt of the District of Columbia to $6,049,350, while as an offset against this there is held in trust by the Treasurer $1,326,000 of United States bonds. With the beginning of the fiscal year 1917 the Treasurer held for District of Columbia contractors $254,652.69. The law providing for this 10 per cent guaranty fund was eliminated by Congress during the present fiscal year with provision for the repayment of all such amounts on authorization by the Commissioners of the District of Columbia, with the result that the Treasurer now holds but $132.51 as a balance due District of Columbia contractors, this amount being unclaimed. The old securities of the District of Columbia held in the care and custody of the Treasurer are: Chesapeake & Ohio Canal bonds..... Total.... $84, 285.00 20, 134.72 104, 419.72 With rapid strides the financial transactions of the Treasury continue to grow, testing the capacity, the fidelity, and efficiency of the clerical force in the Treasurer's office. The many and varied tasks have been performed with alacrity, accuracy, and high intelli gence. The Treasurer feels that it is a privilege as well as a duty to recognize and to commend the merits in character and work of the force every member of which deserves so well. Respectfully, Hon. WILLIAM G. MCADOO, JOHN BURKE, Treasurer. Secretary of the Treasury. |