The evening Republican., 1902-09-30
MILLIONS SET FREE
Reserve Against Government
Deposits Abolished.
STATEMENT BY SECRETARY SHAW.
Action the Result of the Great Strin.
gency In the Money Market-Call
Money Ia Wall Street at
:iN Per Cent.

Money In Wall Street ut
35 Per Cent.
NEW YORK, Sept. 30.-Leslic NJ.
Shaw, secretary of the treasury, now in
this city, declines to discuss the tinan-
cial situation further than to say that
the treasury would cooperate as far
MS possible with the banks both east
und west in their effort to supply the
necessary credit to do the unprecedent-
cd amount OF business that is taxing
railroads and steamship lines as well
rs banks to the utmost. He said he
had never seen any good reason why
banks holding government deposit Sc
cured by government bonds should be
s'Cnlrcd to carry 81 reserve against it.
First. it is deposit not likely to be
called in Il time of stringcncy, and. sec
Ond, if called the collateral will al
"-;,S sell for cash and in excess of the
deposit. He has had in mind ever since
he took control of the treasury to re-
lev" the banks of this burden.
Tho comptroller Of the currency
agrees with the secretary, and there
fore it is announced that hereafter
banks will not be required TO carry &
reserve against government deposits Sc
cured hy government bends. The treas
ury has OF deposit with various banks
scattered throughout the country from
Maine TO california and from MinnesO-
4
Sl30,0OO,NGo against which they have
heretofore been compelled to hold more
than $3OH0D,CCO Of gold or its rquiva-
lent. This decision will release that
much reserve aud $3O,GOUUOO additional
credit.
The secretary said he would continue
TO make deposit o. internal revenue and
miscellaneous receipts (all available for
that purpose', practically $50o,0Oo per
day, as long as the situation required,
and if banks were unable to obtain gov-
rrnmcut bonds to secure the same he
would accept the same general class Of
securities municipal bonds, ctc.-as
are made available by the laws Of the
this it is not intended to loan in eX-
cess Of 80 per cent Of the par value, and
nothing will be accepted that has not
been panic tried and proved .alanlc for
cash. II" said he should of course de.
teruinc each ease by itself.
The secretary further said he would
accept security Of the class described
above for a portion Of the deposit held
by each bank now holding a govern
mrnt deposit and release enough = per
cent conSolS to cover any increased
currency that the bank may desire TO
issue.
The srcrrtarv's additional relief
therefore may be summed up as fol-
lows:
l'irst.-Ihc release Of practically
S"O. O.OOO,pnO reserve, which will permit
the banks to increase their volume of
business SlJ0,UU0,OO0.
Second substitution of other
security for consus now held by the
government on condition that the same
| shall be used as basis for increased
| circulation which, if accepted by the
| banks will Immediately increase the
! volume $2p ODU,UOO to $2j,UUuOOO and
will add thereto if nrvGrd.
Third. continuation Of deposits
TO the limit allowed by law, accepting,
| If necessary, security other than gov
crnmcnt bonds.
With call money up to - per cent and
other adverse circumstances yeStcr-
| days stock market received very Sc
| we're shake up, net losses in many oc
| tive issues ranging from to ~ per
| cent. The greatest loss was sustained
| by Louisville and Nashville, which
dropped 1855 points. disappointment
regarding tLc probANlc disposition of
| the road as E!urh as anything else is
| supposed TO have caused the break.
| Other features lhut c,mbilrd to un-
| settle the market were dislui"ting re-
! ports concerning the presidents cUndl-
tiCn, lh" prOlUngatlUn of the coal strike
and the indubitable fact that London
! and the continent are unloading Amer
cans" in large blocks. Practically all
| the money loaned On call came from
trust companies and out of town corpo-
| rations and private individuals, TIL"
| banks Of the Clearing House aSsocia
ton stood aIoof and made virtually no
loans for speculative purposes, More.
over, the so called substantial interests
offered no support to the market,
which, with few exceptions, including
AtchSou ana st. Paul, closed ut the
| lowest level