The evening times. [volume] (Washington, D.C.) 1895-1902, 1902-09-13

VIII Issue Increased Circulation, But
Does Net Wish to ESTce Them.
IN view of the high cali money rates
in New York and other indications Of
higher mcEetary conditions, Secretary
Shaw has decided to anticipate the &C.
tcber interest on the Government bonds.
amounting to about sl.2o0,090, and with
this in view orders have been issued to
the various subtreasuries to cash such
coupons as may be presented 70 them
for payment. and the Treasurer OF the
United States has been instructed to
mail checks for interest On the reg
istered bonds
Secretary shaw has also made ar
.rawements TO release about 4.eG0. coo OF
the Treasury holdings. Ee has had
list prepared CT those D1tionaI banks
Throughout the countrz which held free
or Unplcdged bends at the date CT their
last report. and has made inquiry for
others. After making allowance for
Charged conditions since last report, ne
expects this viii release al least $4.0o0.-
eco.
VIII Be Temporary Dspositories.
He has sent notice TO al such that if
they viii send these bonds to the Treas
urer Of the United states in sums of
S50.000 OF more. they viii be designated
as temporary deposI cries and the face
value Of the bonds wIII be deposited
WITH them 10 the creitt Of the Treasurer
CT the United States
The Secretary has pursued this course
in preference 70 desis7-s.ting repositories
IN the ordinary way, which eompels
them to buy bends IT the market at a
large premium. thus paving out more
for the bends than they get from the
Government The customs receipts are
extremely heavy at this particular sea
son of the year, and the cash balance Of
the Treasurer has been gradually in
creasins-
No Occasion for Alarm.
TIE Secretary sees in present condi-
tions no occasion for alarm. He calls
attention to the fact that there Is no
evidence OF a currency famine, present
or prospective. elsewhere than in New
York. and even there the rate is not
high for commercial paper, and for com
mercial paper he has the greater solicit
tude He is well satisfied with his ef-
forts to increase circulation, which he
decided upon in the early summer, when
present conditions were plainly visible.
and has a stock Of banknotes ready 20
meet an emergency which he does not
expect. but which he thinks il wise TO
provide against.
Is Not Forcing the Banks.
Thus far ne has made requests only
Of such banks as hold large deposits
and have very limited circulation, and
he is not asking these to Increase to
the maximum. nor to increase at all
for the present He does not desire 10
force the banks into the market 10 buy
bonds at a rate higher than the Gov
ernmeRt is willing to pay.
He wishes. however. to make the best
possible use OF the free bonds now held
by the hanks. and Incidentally TO en-
courage hanks TO hold free bonds during
the dull months. believing il Is much
better to hold bonds that Will yield 1le
.
at ? per cent. He is. therefore, giving
the banks that hold these free bonds an
opportunity to use them 10 best ad-
vantage.
Would Add Elasticity.
This method, If pursued by the banks,
would give a slight element CT elasticity
to the otherwise fneIastie system
His position as regards increasing cir
e,.Iatfon is perhaps best expressed n the
following letter. which he recently wrote
l Il bank that had been already buying
bonds:
7 ind it well-uight impossible to
convey the purDoFt OF my request even
TO the banks OF whom / have made the
request. much less to the public
..Ffrst-In case of imminent Danger
/ or actual disaster 1 viii be compelled
Ito use Government deposits TO BUY IN
/ creased circulation
/ -.Seccnd-I desire TO have from fifteen
Ito fifty millions additional circulation
printed preparatory. so that It can re
ISSUED in four days. instead OF forty
/ Third viii be glad 10 have the
banks holding deposits arrange Il lhsy
/ can TO borrow the bonds
/ FOURTH desire TO send no bank into
lthe market 10 buy bonds az the present
( time
fifth do not care to have the cur
|rercy issued unless conditions make il
we'll nigh imperative
Secretary Held Responsible
= am making no demand upon any
bank The amount Of their circulation
must be determined by their directors,
but inasnuch as the public holds the
secretary OF the Treasury somewhat re-
( So nsible fer existing conditions. I deeES
rs self justified in using the public fundA
/ nov aeJd by various banks on deposit Is
II think best Tor the public good. and -
case CT trouble I nay thinR best 10
these TO buy increased circulation.
banks now holding such funds n
preference.