New-York tribune., 1902-10-01
FTNANCIERS SEE SHAW.
SECRETARY EXPLAINS HIS
RELIEF PLAN.
o,,rSrnF SECURITIES TO BE USED FOR
CIRCULATION ONLY WHERE Gov
ERNMENT BONDS CAN
NOT BE HAD.

.uahrr q
-.oon. He received constant stream or
.-'..-s ssring the day, among them many OF
,..s,,r eranciers q the city. with whom
- conferences concerning the effect which
- Cor relieving the money stringeney' as
,,os an hts published statement. might he
,,.o,es 70 have. Among the bankers VINO IN
80 course of the day were in conference WIN
- secretary were George F. Baker pTesioent
=. Fi-s, National Bank, who made more
q ~ IN. George q. williams. president OF
'1" ,,,-.-,-.l National Bank. James stilman'
- s., y. ,,e National city Bank; r. H. mar
-, It II Gary. chairman OF me oOaiu o
=, Y-,,tas states Steel Corporation tleiIis
- president ~ the Chase -Na''oia' Damn,
- Dela0eld president OF ths NH'ioi"-
-. rark. William II. Perkins pres'oe"' -
:. psrk ot America, William a N"s''
-. =, the Corn Exchange hahK' 'osp
14snsriN. president 81 The N",''''-- -. 90
--. 49,, Ts,res n. Donald oe-presiaeht VI
~, Hanover National Bank Oh','' 80 E
,,or John Kean, James a bia"' -. Ns,v-
60. Charles 5. Fairchilo' preSlDs'.' - torrner-
-. e,,,,r,,v and Trust Company, ana io' -,
1'n -. ~ the Treasury, and .Georee v
- y Morgan & CO. ". b h'0se.s'
-. =. she currency, was also ahloi's '--s
secretary's callers , --.,s,,--v
- e,,1,r,an when leaving the suo-lreASu's
= ssEad for his opinion on the seer
.-..r,.,t He answered i think 'he SCI
...~,,s action was very commendanie
,,.,-,,,. called 10 congratulate the Secre-
-. % ssi5 Judee Gary. In my opinion ne mas
srou.r good judgment. and ! firmy oeheFe his
,ior viii 90 a great ways toward easing 'he
situation s.,, cav
In the course Of the day the Secretary sa" sew
,.rsl delegations OF newspaper men, WIN whom
,nsr, A question being raised as 10 the legahty
:, re secrerar,.'s action in exempting the pub
Il, 5eposits from the reserve requirements OF
-. National Banking act. Mr. Shaw declared
that his course was legal and that there was
.,,,rta Granting such authority. Asked as 10
she nroposed substitution OF other securities Tor
limited states bonds collateral for internal
revenue and miscellaneous receipts, secretary
Shaw drew attention 10 his statement that out
SIDE honds would be taken only in case gov
eminent bonds were not 20 be obtained. You
see" said he. ''the law reads, Government bonds
and otherwise The and there take 10 mean
that the otherwise comes after all the gov
eminent bonds available have been deposited"
Then this provision is a kind Of a club?'
~oh. no" replied the secretary, your hanks
here don't need any club 10 cause them 20 do
sheir patriotic duty. This is only an extra in
duoement"
In regard 10 the acceptance Of these bonds the
Secretary viii be critical according 10 his own
announcement 7 won't take a bond that
hasn't stood the test OF panic, and ISN'T as
good IN London as IL IS here. and on top OF that
test III put my own judgment" said he.
Does the President approve OF your plsnse'
was asked.
wire him and see" replied the Secretary as
he dismissed the newspaper men.
Chairman Babcock OF the Republican Congress
Campaign Committee was a caller az the Sub
Treasury while Secretary Shaw was al luncheon
with Mr.. Blair When ne was asked what ne
thought OF the action Of the Secretary. he said:
"The only thing that can be said against 81 is
thar il was never done before. and is. therefore.
new precedent Il is entirely within the pre-
negatives of Secretary Of the Treasury 10 do
as NJ. Shaw has offered to DO, and believe that
The people Of this country vii agree with him.
] see no reason 10 believe that Congress win
eF'teise him in any way"
How about the report that the President is
not IN accord with him.?
he Is IN accord with the President IN all this
matter"
--a'e yesterday afternoon the Secretary made
'Ae Following statement. smpHfy1ng and max
avg moro clear certain features OF the state
NFib oi Monday night:
h.. me department. is in receipt Of a large num-
~ w teluesis from various hanks IN the ooun-
on s' ,Ieei'} showing that the statement given
- .asi hisht was misunderstood or rrther
fat H was NOT carefully read. That there may
men, iilsN .aeistanding, the following state
,,t 80 ne" deposits viii he made on any security
- .Aah government bonds so long as govern
- N'Nis can Doe secured. For the present
tuAs seem to he able TO obtain frequently by
living, bonds other than per cent consols
lr7itos - u'.'lh ne use Of these bonds for
''.u period, and they are as desira bic as
6se.tI 'uiliy Tor deposits. They not as
S.e az security FOR circulation. for the rea-
.''ol circulation based thereon Is taxable at
-. ''"', While circulation based on the > per
'ly eohs0ls Is taxable at only one half of I per
ct ne banks cannot obtain except by pur-
os,,sI any bono as a basis FOR circulation. be-
- when deposited FOR circulation they can
80 ue released until the circulation is retired
80 ~ may take year before the circulation
80, oe reliIed and the price Of bonds is so high
49,, ""iih circulation is maintained at consid-
-.f iess 10 the hanks. They must be en-
>'~iasea, or circulation constantly contracts
therefore the department has decided 10 re-
'ase Tor such banks as have deposits and are
"'' maintaining their limit OF circulation a
40fuon OF the bonds now held by the govern
"'"~ taking IN lieu thereof other satisfactory
security on condition always that the bonds
''s3seo VII! be used for the immediate issue OF
3-u4lona! circulation. This provision does not
-NNy 10 those banks that already have their
~~''aum circulation neither does Il apply 10
1-HSs That DO not have any deposits The sole
PURPOSE OF the offer Is 10 increase circulation
s i already printed and ready 10 be issued
-A1 by banks that already have the bonds on
spos3's These deposits being scattered
N'oughout the entire country. the relief offered
believed, VIII be national rather than local.
.o' applies 10 AL sections of the country. and
every state In the Union
me last callers IA the afternoon were George
at Eerklns and ex-Secretary Fairchild whom
a. Ferkins introduced 10 the Secretary
Noie m. come in" said Mr.. Shaw, extending
80 hhnd cordially 10 Nj Fair-hild I've seen