Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-09-13
10 RELIEVE MONEY sTRlNcENcY.
National Banks Anywhere May Put Up
Bonds and Secure Deposits Of Cow
srnmsnt Funds - Need Not Buy
sonds Enormous Customs Receipts
FAnal.Al.~ R>..-,>.

that if they will send these bonds to the
treasury Of the United States in sums
OF $4,000 or more they will be desig-
lated temporary repositories and the
face value OF the bonds will be depos-
tied with them to the credit OF the
treasurer Of the United States. He has
pursued this course In preference to
sdesignating depositories IN the ordinary
ways, which compels them to buy
bonds In the market at large premi-
um. thus paying out more for the bonds
then they get from the government.
The customs receipts are extremely
heavy at this particular season Of the
gear and the cash balance OF the treas
nrer has been gradually increasing.
He has also decided to anticipate the
October interest amounting to $4.200.-
900. and with this in view orders have
been issued to various ub-treasuries to
cash coupons as they may be presented.
The secretary sees In the present cons
citions no cause for alarm. He calls
attention TO the fact that there is no
evidence Of 3 currency famine, present
or irrespective, elsewhere than in New
York, and even tho the rate for CONS
mercial paper is high. he has no great
'Bolicitude. He Ii well satisfied with his
efforts to increase the circulation,
which he deoided upon IN the early sum-
,ner, when present conditions were,
plainly visible. and has the presses pre-
raring tosmeet an emergency, which he
does not expect, hut which he thinks It
~ Wise % provide against. Thus far
Ne has made requests only of such
banks as hold large deposits and have
very limited circulation, and Is not ask
1nr these to Increase at ill for the pres
ant. Il Ht. 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 free bonds now held
by banks. incidentally he likes to en-
courage banks to hold free bonds dur
fnr the dull months, believing 1t is
much better to hold bonds that Will
yield 3 per cent. He Is, therefore, siv-
inx banks that hold these free bonds
IN opportunity to use them TO the most
excellent advantage. This method. II
pursued by the banks. would give
elixfit element OF elasticity to our otn-
erwise inelastic system.
His position as regards increasing
circulation is perhaps best expressed IN
= letter which he recently wrote to a
bank that had been already buying
bonds. which he has consented to make
public, as follows:
Treasury Department, WASH
inRton, Sept. 10.-My Dear Sir:
your letter OF the Sth received.
i ana 1t we'll nigh impossible to con-
gyey the purport of my request, even
Ia banks OF whom I have made the
I request, much less to the public.
a. sE3rst-In case of imminent dam
9er OF actual disaster, will be
compelled to use government de-
posits to buy increased circula-
tion.
s.9econd-I desire to have from
fifteen to twenty millions addition
Il II n circulation printed preparatory.
10 that 1t can be issued in four
days instead of forty.
.s,rhird-I will be glad to have
hanks holding deposits arrange II
they can to borrow bonds.
s.Frourth-I desire to send no
hank into the market to buy bonds
st the present time.
sFifth-I do not care to have cur
renew issued, unless conditions
make it we'll nigh imperative.
..I am making no demand upon
anv bank. The amount OF their cir
cuia ton must be determined by
their directors, but inasmuch as the
public holds the secretary of the
treasury somewhat responsible for
Il existing conditions, deem myself
Justified in using public funds now
held by various banks on deposit
"a think best for the public good,
and In case of trouble may think
best to use these to buy increased
circulation, the banks now holding
such funds having preference"
Later in the day the following was
given out at the treasury department:
s.s,The New York banks are complains
sinR because the unprecedented de-
nfaY,d In the west is reducing their
available cash. They therefore ask
\ that they may be allowed to go into the
market and pay $1,100.O0O for a million
bonds and receive from the treasury
million deposit, with bonds as security.
They seem willing to do this and in
crease their reserve $250,O00 against
this Increased liability. Thus the banks
would decrease their available cash
10000, but they would be drawing In
terest on bonds. Instead of this the
secretary Is loaning to any bank. wher-
ever situated, upon its free bonds. In
this way the western demand upon
banks will be relieved and they will
only have to protect themselves"
-4 nEoIAcE rREES
Restoration Of the Tracts In Wisconsin.
washington, Sept. 13.-If the reports
Of the government foresters are favor
able, there will be established in Wis
consin IN the near future q system OF