Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1902-09-16
Those Which Help be Made Gov
eminent repositories.
NO EVIDENCE OF MONEY FAMINE
Secretary of Treasury Also Decides to
Anticipate the October Interest
Coupons Will Be cashed on Presen.
tation to Swell Supply of Currency.

Washington, Sept. 13.-Secretary
Shaw today issued statement in
which he says he has made arrange
ments to release about S4,000,000 of
the treasury holdings, held free or
pledged by certain national banks
throughout the country He has sent
a notice to all such that if they will
send these bonds TO the treasurer of
i;or more. they will be designated rs
temporary repositories and the face
value of the bonds will be deposited
with them to the credit of the treas
urer of the United States. He has
pursued this course in preference to
designating repositories in the ordina-
ry ways which compels them to buy
bonds in the market at large pre-
MUM. thus paying out more for bonds
| than they get from the government.
Custom Receipts Heavy.
/ Customs receipts are extremely
heavy at this particular season of the
/ year and the cash balance of the
treasurer has been gradually increas-
) ing.
Also Decides to Anticipate Interest.
He has also decided to anticipate
i the October interest amounting to
/ S4.200000, and with this in view or
!, ders have been issued to the various
sub-treasuries to cash such coupons as
may be presented.
No Cause for Alarm.
The secretary sees in present con-
ditions no cause for alarm. He calls
attention to the fact that there is no
evidence of currency famine, present
or prospective, elsewhere than in New
. York and even there the rate is not
high for commercial paper, and for
commercial paper he has great solicit
tude.
Satisfied With Efforts.
He is well satisfied with his efforts
2 to increase the circulation which he
, decided upon in the early summer
when present conditions were plainly
visible and has the presses busy pre-
pairing to meet the emergency which
he does not expect but which he
: thinks it is wise to provide against.
Thus far he has made requests only
;. of such banks as hold large deposits
: and have very limited circulation and
n is not asking these to increase at all
g for the present.
g Will Not Force Banks.
q He does not desire to force the
banks into the market to buy bonds
at rate higher than the government
is willing TO pay. He desires to make
the best possible use of the free
:. bonds now held by the banks Incl
dentally he likes to encourage the
!, banks to hold free bonds during the
= dull months, believing it is much bet
:, ter to hold bonds that will yield two
a per cent. He is therefore giving the
banks that hold these free bonds an
:. opportunity to use them to most eX-
= cellent advantage. This method, If
!. pursued by the banks, would give a
:, slight element of elasticity to our 9TH
:, erwise inelastic system.
IS Issues Statement.
y Later in the day the following was
given out at the treasury department:
New York banks are complaining be-
cause the unprecedented demand
g in the west is reducing their available
cash They therefore ask that they
may be allowed to go into the market
re and pay $1,100,0O0 for $1,000,000
= worth VI JULIUS dilu lCSSiNS iioii eii~
y. treasury a deposit of $1,0O0,OO0 with
u the bonds as security. They seem
IS willing to do this and to increase their
IL reserve $250,OO0 against this increased
lie liability. Thus the banks would de
a.. crease their available cash $35O.0OC
but they would be drawing interest or
the bonds. Instead of this the secre
7. tary is loaning to any bank wherever
). situated upon its free bonds. In this
:" way the stern demand upon the banks
will be relieved and they will onl!
is have to protect themselves.
sd Bank Statement.
~ New York, Sept. 13.-The weekly
a. bank statement issued today shows
= the surplus reserve of banks has de
creased during the week by $3,3S1,975
leaving it at s7l5,075 in excess of q
per cent of the deposits required b.
in. law. Loans have decreased $6.ST5 800
deposits have increased $1l4.62S.900
the circulation has increased $702. 800
le-l legal tender has decreased $l,220,7 100
in the, specie has decreased $5,S18.50
IN ~ IN recarya has decreased 81 GAG