Williston graphic. (Williston, Williams County, N.D.) 1895-1919, 1902-10-02
SHAW HELPS S0ME
TAKES STEPS WHICH WILL RE-
LIEvE FINANCIAL STRING
ENcY.
$50, 600, 900 AVAILABLE AT ONCE
BANKS NEED NOT CARRY RE.
y SERVE AGAINST GOVERN
MENT DEPOSITS.
SECURED BY GOVERNMENT BOMBS
WILL PERMIT BANKS TO IN
CREASE VOLUME OF eUsI.
NESS s1so,ooo,ooo.
SECURED BY GOVERNMENT BOMBS

New York, Sept. S1.-Secretary VI
the Treasury Shaw, who was in New
York last night, has issued a state
ment in which he says that the banks
will hereafter not be required to carry
a reserve against government deposlts
secured by government bonds. ms
will make available to-day over $780,
100000.
Secretary Shaw declined to discuss
the financial situation further than to
say that the treasury would cooperate
as far as possible with the banks, both
East and West, in their effort to sup
ply the necessary credit to do the un'
precedented amount of business that
is taking railroads and steamship lines
as we'll as banks, to the utmost
Mr.. Shaw said he had never seen
any good reason why banks holding a
government deposit secured by gov
ernment bonds should be required to
carry reserve against 1t. First, 1t is
a deposit not likely to be called IN A
Time Of Stringency
and, second, if called the collateral
will always sell for cash and in excess
of the deposit. He has, since he took
control of the treasury, contemplated
relieving the banks of this burden.
The controller 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
secured by government bonds.
" The secretary said he would con-
tinue to make deposit OF internal rev
enue and miscellaneous receipts (all
available for that purpose) practically
$500,0OO per day, as long as the situa-
ton required, and if banks were un-
able to obtain government bonds to Sc
cure the same he would accept the
same general class of securities, NUM-
cipal bonds, etc., as are made avail
able by the laws Of the several states
for savings banks. BY this it Is
Not Intended to Loan
in excess of 65 per cent of the par
value and nothing will be accepted
that has not been panic-tried and
p1 owed saleable for cash on call. He
said he should of course determine
each case 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 govern
ment deposit, and release enough 2
per cent consOls to cover any In
creased currency that the bank may
desire to issue. He has recognized
the possibility of present conditions
and therefore as early as last July
commenced printing currency prepara.
tory to the needs Of the banks to han
die the increased business of the fall
trades, and has on hand ready to be
delivered an aggregate Of about $685.
100000. This can be sent out at the
probable rate of s., 100000 day if the
banks desire to, substitute the other
securities above designated for the re-
lease of the consols. This
Step Was Contemplated
when some months ago he asked the
banks holding government deposits to
order additional currency printed. The
secretary's additional relief therefore
may be summed as follows:
First, the release of practically $780,
100000 reserve which will permit the
banks to increase their volume of
business $13O,O00,0O0.
Second, the substitution of other Sc
curity for consols now held by the
government on condition that the
same shall be used as basis for in
CT eased circulation, which if accepted
by the banks will Immediately in
crease the volume about $25, 100000
and will add thereto if needed.
Third, the continuation of the dep
csits to the limit allowed by law, ac-
cepting> if necessary security other
than government bonds.
Secretary Shaw will remain in New
York to-day and expects to visit the
financial district