The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-09-14
October Interest to BE Anticipated,
Thus Putting Over s4,OOO,OOO More
I'm Circulation.
sTRINGENCY AT NEW YORK
WHERE THE BANKS LOST OVER
SEVEN MILLIONS LAST WEEK.
Surplus Reserve Only s715,O75 Above
the Required 25 Per Cent. Limit
weekly Statement.


to-day issued the following statement:
Secretary Shaw has made arrangements
TO release about 100000 of the treasury
holdings. He has had a list prepared of
those national banks throughout the coun-
try which held free or pledged bonds at the
date of their last report and has made in
quiry for others. After making allowances
for changed conditions since last report he
expects this will release at least $4,000, 900.
He has sent notices to all such that If
they will send these bonds to the treasurer
OF the United States in sums of $4,000 or
more. they will be designated as temporary
depositaries, and the face value of the
bonds will be deposited with them to the
credit OF the treasurer of the United States.
He has pursued this course in preference to
designating repositories in the ordinary
way, which compels them to buy bonds in
the market at large premium. thus pay
ing out more for the bonds than they get
from the government The customs receipts
are extremely heavy at this particular
son OF the year, and the cash balance of the
treasurer has been gradually increasing
He has also decided to anticipate the
October interest, amounting to about s4.-
100000. and with this in view orders have
been issued to the various suhtreasuries to
cash such coupons as may be presented
them for payment, and the treasurer of the
United States has been instructed to mail
checks for interest on the registered bonds.
AL this was decided on some days ago, and
letters and kilograms prepared for to-day.
The secretary sees in present conditions
no occasion for alarm. He calls attention to
the fact that there is no evidence of cur
rency famine, present or prospective, else
the rate Is not high for commercial paper
He Is well satisfied with his efforts to In
crease circulation. which he decided on in
the early summer when present conditions
were plainly visible, and has the presses
busy preparing to meet 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 cir
culation, and he is not asking these to in
crease to the maximum. nor to increase at.
all for the present. He does not desire to
force the banks into the market to buy
bonds at a rate higher than the government
Is willing to pay. He does desire to make
the best possible use of the free bonds now
held by the banks. Incidentally he likes to
encourage banks to hold free bonds during
the dull months, believing it is much better
TO hold bonds that will yield y per cent.
even than to make call loans at 2 per cent
He is. therefore, giving the banks that hold
these free bonds an opportunity to use them
TO an excellent advantage. This method, IL
pursued by the banks, would give slight
element OF elasticity to our otherwise in
elastic currency system
His position as regards increasing circu-
lation is perhaps best expressed in a letter
which he recently wrote a banker that had
been already buying bonds. and which he
has consented to make public. as follows:
Washington. Sept 10.
My Dear Sir-Your letter of the sth is
received L find IL well-nigh impossible to
convert the purpose of my request even to
the banks to whom / have made request.
much less to the public.
'First-In case of imminent danger, or
actual disaster, / am compelled to use gov
ernment deposits TO buy Increased circula-
'Second-I desire to have from fifteen
to nifty millions additional circulation print
ed preparatory SO that 1t can be issued in
Third-i Will be glad to have the banks
holding deposits arrange, If they can, to
Fourth desire to send nc hank into
the market to buy bonds at the present
time.
rency issued unless conditions make ii we'll
nigh imperative
am making no demand upon any
bank. The amount of their circulation must
be determined by their directors. but mas
much as the public holds the secretary of
the treasury somewhat responsible for ex-
listing conditions L deem myself justified i'm
using the public funds now held by various
banks on deposit as / think best for the
public good. and in case Of trouble 1 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: 1.-The
New York banks complaining because
the unprecedented demand in the West is
reducing their available cash. They there
fore ask that they be allowed to go into
the market. pay sl.lOO.O00 for a million bonds
and receive from the treasury a million de-
post with the bonds as security They
seem willing to do this and increase their
reserve s25o.UO against this increased ifa-
bility. Thus the banks would decrease
their available cash $3.50 600 but they would
be drawing the interest the bonds In
stead OF this the secretary is loaning TO
any bank, wherever situated upon its free
bonds. In this way the Western demand
upon the banks will be relieved and they
will only have TO protect themselves
Four Millions of Armour Money
CHICAGO. Sept. 13.-Seeking To relieve