The Topeka state journal., 1902-09-13
shaw TO RESCUE
Secretary of Treasury VIII Ease
Up Money Market.
Anticipate Interest and In
crease Government Deposits.

Washington, Sept 13.-Secretary Shaw
today issued the following statement:
Secretary Shaw has made arrange
ments to release about $4,000. 900 of the
treasury holdings He has had a list
prepared of those national banks
throughout the country which held Tree free
last report and has made. inquiry for
others. After making allowance for
changed conditions since the last re-
por p ne oe onectT this w sent nea;c at
all such that If they win send these
bonds to the treasurer of the United
States in sums of $50, 600 or more they
will be DESIGNATED as temporary de-
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 de-
positaries in the ordinary way, which
compels them to buy bonds In the mar
ket at large premium, thus paying
out more for the bonds than they get
from the government. The customs re-
ceipts are extremelx heavy at this par
ticular season of the year, and the cash
balance of the treasurer has been grad
ually increasing.
He has also decided to anticipate the
October interest, amounting to about
"a. .200, 900, and with this in view orders
have been issued to the various sub
treasures to cash such cDupons as may
be presented them for payr7 ent,s and
the treasurer of the United ties has
been instructed to mail checks for In
terest on the registered bonds. All this
was decided upon some days ago and
letters and kilograms prepared for to-
dav.
1.-The secretary sees In present condi-
tions no occasion for alarm. He calls
attention to the fact that there is no evil
dence of 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 So.
1icftude.- He is well satisfied with his
|. efforts to increase circulation which he
decided upon In the early summer when
present conditions were plainly visible
and has the presses busy preparing to
| pect but which he thinks 1t is wise to
provide against. Thus far he 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 in
crease at all for the present. He does
not desire to force the banks into the
market to buy bonds at rate higher
| than the government is willing to pay.
| He does desire to make the best possi-
| BILE use of the free bonds now held by
| the banks. Incidentally he likes to en-
courage banks to hold free bonds during
| the dull months, believing 1T is much
| better to hold bonds that will yield half
| per cent even than to make call loans at
| 2 per cent He is, therefore, giving the
DAnkS InaI nOlQ these Tree D0nQS an
| opportunity to use them to most excel
! lent advantage This method, If pur-
| sued by the banks. would give a slight
! element of elasticity to our otherwise
| inelaStic currency system
| His position as regards increasing
| circulation 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:
Treasury Department, Washington,
| D. c., Sept. 10, 1902.
my Dear Sir:-Your letter of the 9Th
| is received. find 1t well nigh impossi-
| Bile to convey the purport of my request
| even to the banks of whom have made
| the request much less to the public.
'First-In case of imminent danger or
actual disaster I will be compelled to
use government deposits to buy in
creased circulation.
"Second-I desire to have from is to
! 50 millions additional circulation print
ed preparatory, SO that 1t can be issued
in four davs instead OF 40
''Third-I will be glad to have the
banks holding deposits arrange il they
can to borrow the bonds.
FOURTH desire to send no bani
into the market to buy bonds at the
| present time.
Fifth do not care to have the cur
rency issued unless conditions make II
well nigh imperative.
IT am making no demand upon any
bank. The amount of their circulation
must be determined by their directors
| but inasmuch as the public holds the
secretary of the treasury somewhat re-
sponsible for existing conditions. deem
myself justified in using the publ;
funds now held by various banks or
| deposit as think best for the public
good, and in case of trouble I may
think best to use these to buy increased
circulation. the banks now holding
such funds having preference