Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1902-09-18
The Secretary CT The Treasury Says
There is No Evidence Of a C&-
rency Famine Elsewhere
Than in New York.
FOUR MILLION DOLLARS
OF TREASURY HOLDINGS
SOON To Be RELEASED
National Banks to be Called
Upon for Bonds.
THE OCTOBER INTEREST ANTICIPATED

Washington, Sept. IL. Secretary
Shaw today issued the following state
ment:
''Secretary Shaw has made arrapA-
ments to release about "a, 600, 900 of Sns
Treasury holdings. He has had ~ list
prepared of those nations Banks
throughout the country which held
free or unpledged bon 1s at the date Of
their last report. and has made inquiry
for others. After making allowances
for the changed conditions since the
last report, he expects this will release
at least 81, 600. COO He has sent notice
to all such banks that If they will send
these bonds TO the Treasurer of the
United States in sums of $50, 600 or
more, they will be designated as tenn
porary depositaries, and the face value
of the bonds will be deposited with
them to the credit of the Treasurer of
the United States. He haz pursued
this course in preference to designat-
ing depositaries in the ordinary way,
which compels them to buy bonds in
the market at a'large premium, thus
paying out more for the bonds than
they get from the government. Tie
customs receipts are extremely heavy
at this particular season 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 81, 200, 600; and, with this in
view, orders have been issued to the
various sub-treasuries to cash such
coupons as may be presented to them
for payment, and the Treasurer of the
United States has been instructed to
mail checks for interest on the regis
.s<s<y
upon some days ago, and letters and
kilograms prepared fer today.
1.-THE Secretary sees in the present
conditions no occasion for alarm He
calls attention to the fact chat there Is
no evidence of currency famine pres
ent or prospective elaewhere than in
New York; and even there the rate is
not high for commercial paper, and
for commercial paper he has the greater
solicitude. He is we'll satisfied with
his efforts to increase circulation,
which he decided upon in the esriy
summer. when the present conditions
were plainly visible; and has the
presses busy preparing to meet an
emergency which he does not expect,
but which he thinks 1t is wise to pro-
vide against Thus far, be has made
requests only of such banks as hold
large uopOSlts anu uafo very iuit5
circulation, and he is not asking these
to increase 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 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, believ-
| ing it is much better to hold bonds
that will yield liz per cent even than
to make call loans at 2 per cent.
"He is, therefore, giving the banks
| that hold these free bonds an opportu-
nifty to use them to most excellent
advantage. This method, if pursued
by the banks, would give a slight ele-
ment of elasticity to our otherwise
inelastic currency system.
His position as regards increasing
circulation is perhaps best expressed in
letter which he recently wrote to a
bank that had been already buying
bonds. and which he has consented to
make public. 1t is as follows:
Treasury Department, Washington, Sep.
| 10. l902-My Dear Sir: Your letter of thG
sth is received. find lit well nigh impossi-
ble to convey the purport of my request even
to the banks OF whom 1 nave made tine re-
quest, much less to the public.
'.First-ln case of imminent danger q
actual disaster, will De compelled to us
government deposits to buy increased circs
lation.
''Second-I desire to have from Is, 000.0d
to 50,0O0, ,000 additional circulation printe
preparatory, so that itcan be issued in fou
| days, instead of 40.
'tThird--I will be glad to have the bankt
holding deposits arrange if they can to bor-
row the bonds.
Fourth desire to send no bank into
the market to buy bonds at the present time
"Fifth-I do not care to have the curs
rency issued unless conditions make it we'll
nigh imperative.
II am making no demand upon any bank.
| The amount of their circulation must bG
| determined by their directors; but, inas-
much as the public holds the Secretary OF the
/ Treasury somewhat responsible for the ex-
| listing conditions, deeml myself justified
4 in using the public funds now held by vnri-
| Gus banks on deposit as think best for the
| public good and, in case of trouble, may
think best to use these to buy increased cir
culation. the banks now holding such funds
/ having preference"