Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-09-30
RESERVES RELEASED
Secretary Shaw Take. Further
Action to Relieve the Mon.
etary strinfency
sao,oooooo MADE AVAILABLE
ssoooo,ooo MADE AVAILABLE
Banks Relieved Of Unnecessary Bur.
den and the Circulating Medium In
creased to a Large Extent - Shaw
Will Continue Deposit Of Internal
Revenue in the Banks.

New York, Sept. 3O.-Secretary of the
Treasury Shaw, who was in New York
last night, issued a statement in which
he says that the banks will hereafter
not be required to carry a reserve
against government deposits secured
by government bonds.
This will make available today over
$50, 100000.
Secretary Shaw declined to discuss
the financial situation further than to
say that the treasury would cooperate
as far as possible with the banks both
east and west in their effort to supply
thes.iecessary credit to do the unprece-
dented amount of business that Is tax
ing railroads and steamship lines, as
we'll as banks. to the utmost.
Mr.. Shaw said he had never seen any
good reason why banks holding q gov
eminent deposit secured by government
bonds should be required to carry re-
serve against it. First, it is deposit
not likely to be called in a time of strin-
gency, and, second, if called the coliate-
cess of the deposit. He has since he
took control of the treasury ecltem-
plated relieving the banks of + bur-
den.
The comptroller of the CT ~
agrees with the secretary and tn sore
lit is announced that hereafter hanks
will not be required to carry reserve
against government deposits secured by
government bonds
The treasury has on deposit with va
rious banks scattered turnout the coun-
try from Maine to California, and from
Minnesota to New Orleans, in round
numbers $13O,O0O,00O, against which
they have heretofore been compelled to
hold more than $3O,000,O00 of gold or its
equivalent. This decision will release
that much reserve and $30,000,0 900 addi-
tional credit.
The secretary said he would continue
to make deposit of internal revenue and
miscellaneous receipts Gall available for
that purpose) practically half million
per day, as long as the situation re-
squired. and If banks were unable to OBJ
tain government bonds to secure the
same he would accept the same general
class Of securities, municipal bonds,
etc, as are made available by the laws
of the several states for savings banks.
BY this it is not intended to loan in
excess of 65 per cent of the par value.
and nothing will be accepted that has
not been panic-tried and proven salable
for cash or call. He said he should of
course determine each case by itself.
The secretary further said he would
acceptsecurity of the class described
above for portion of the deposit held
by each bank now holding govern
ment deposit, and release enough 2 per
cent consols to cover any increased
currency that the bank may desire to
issue. He has recognized the possibili-
ty of present conditions, and therefore
as early as last July commenced print
ing currency preparatory to the needs
of the banks to handle the increased
business of the fall trade, and has on
hand ready to be delivered an, ,aggre-
gate of about $25,OO0,0O0. This can be
sent out at the probable rate Of $4,000
900 day if the banks desire to substi-
tute the other security above designat-
ed for the release of the consols. This
step was contemplated when some
months ago he asked the banks holding
government deposits to order additional
currency printed.