The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-10-01
Conferences with Leading Bankers
Result I'm Issue Of Further Details
of the New Financial Plans.
EFFECT IN COUNTRY AT LARGE
EXPECTED TO BE GREATER THAN
IN NEW YORK BANKS.
Plan Is Generally Approved, Both in
New York and by the MOneyed Men
of the Other States.

NEW YORK, Sept. 3O.-Secretary Shaw
was an early visitor at the subtreasury to-
day. Mr.. Shaw came to the financial dis
trict for the purpose of discussing the situa-
ton with bankers. His early callers in
cluded President George f. Baker, of the
First National Bank; Francis l.. Hine, vice
president of that bank, and Vice Presi-
dent Vanderlip, of the National City Bank.
The secretary expressed himself as being
much gratified at the Improvement shown
by the monetary outlook. In an interview
the secretary said that all savings bank
securities accepted by the Treasury De-
partment in place of government bonds
would be of the highest class, panic proof
and as good in London as in New York.
Among the secretary's other callers were
W. A. Nash, president of the Corn Ex-
change Bank and chairman of the clearing
house committee; ]. c. Hendrix, president
of the National Bank of Commerce; w. II.
Perkins, president of the Bank Of America,
and James A. Blair. The representatives
of two leading bond houses also conferred
with the secretary. Chairman Ebert II.
Gary. of the United States Steel Corpora
ton, and James Stillman, of the National
City Bank, called in the early afternoon.
~ simply called to congratulate the Sec
retary," said Mr.. Gary. I'm my opinion
he has shown good judgment. and l firmly
believe his plan will go great way toward
easing the situation.
Mr.. Stillman remained with the secretary
| for some time. On taking leave he said:
81 think the secretary's act is very COM
mendable."
| Mr.. Stllman declined to say whether he
thought the financial situation would show
more than temporary Improvement.
! Controller of the Currency Ridgely met
| the secretary at the subtreasury. Mr.
Ridgely said he came to town lust to look
around"
| IL. w. Cannon, president of the Chase
National Bank, and United States Senator
John Keene, of New Jersey, spent brief
time with the secretary, who is reported to
| have requested the bankers to increase
| their circulation without delay. Several of
| them, it is said, promised that they would
! do so. President o. G.. Williams, Of the
| Chemical National Bank, and President
Delafield, of the National Park Bank, paid
! their respects to the secretary. Secretary
| Shaw gave out the following statement to-
| day:
/
number of requests from various banks
i'm the country clearly showing that the
statement given out last night was mis-
understood, or rather that 1T was not care
fully read. That there may be no misun-
Outstanding the following statement is
made:
mo new deposits will be made on any Sc
curity other than government bonds so
! long as government bonds can be secured.
! For the present banks seem to be able TO
obtain, frequently by borrowing. bonds
obtain the of these bonds for a limited
! period, and they are as desirable as any
for security for deposits. They are not as
desirable security for circulation. for the
reason that circulation based thereon is
taxable at / per cent, while circulation
based on the per cent consols Is taxable
at only one-half of i per cent The banks
cannot obtain, except by purchase, any
bonds as a basis for circulation, because
| when deposited for circulation they cannot
be released until the circulation is retired,
| and il may take year before the circula-
| ton can be retired. The price of bonds is SO
high that bank circulation is maintained at
considerable loss to the banks. They must
be encourage circulation constant
ly contracts. Therefore, the depart
ment has decided to release, for such banks
as have deposits and are not maintaining
| their limit of G. @ulation, a portion Of the
| bonds now held ~ the government, taking
in lieu thereof other satisfactory security
on condition always that the bonds re-
| leased will be used for the immediate issue
tof additional circulation. This provision
does not apply to those banks that already
| have their maximum circulation neither
does IL apply to banks that do not have any
deposits. The sole purpose of the offer is &c
| increase circulation that is already printed
and ready TO be issued, and by banks thai
h han the on
tire country, the relief offered, it is be-
lieved, will be national rather than local
fol. it applies to all sections of the countr,
and to every State in the Union"
That the secretary has intended all alonf
that the relief should be general. and fol
the West as well as New York, was shown
effect would be immediate in New York
He explained again how relieving tn,
banks of the necessity of carrying reserve:
Immediately gave them the opportunity Il
extend credits to four times the reserve re
leased. You see, he continued, "you
New York banks do not care anything fo
cash. they do their business by means o
| credits Their loans and deposits are II
the form of checks and bookkeeping, an,
all they want of cash is to maintain thei
Then what is the use of increasing cir
culation?' was asked.
''Oh," replied the secretary instantly
''your banks here do not do all the bust
ness When ii comes to the Western banks
when they want to make a loan for tn
purpose of paying for cattle grain the.
, have got to pay out the actual currency
They don't do so much Of their business OF
books That is where the cash is needed
! and they call on the banks here for it,
, Secretary Shaw during the afternoon re
ceived a number of kilograms from a mum
Der of bankers from various sections of tn
country commencing his action.
Ex-Secretary of the Treasury Fairchil
| was one of those who met Mr.. Shaw. Thei
talk was in private. Before going to tn
subtreasury Mr.. Fairchild had been aske
his opinion of Secretary Shaw's action. 81
is a radical departure from precedent
said he "but IL is a good thing: II was jus