The Coeur d'Alene press. (Coeur d'Alene, Idaho) 1892-1907, 1902-09-20

Washington. Sept. ls-The following
was given out at the treasury depart
ment:
The New York banks are complaining
because the unprecedented demand in the
west Is reducing their available cash.
They therefore ask that they may be al
lowed to go into the market. pay u.ioo.-
90 for a million Of bonds and receive
from the treasury a million deposit. with
the bonds as security. They seem willing
to do this. and increase the reserves szo.-
60 against this increased liability. Thus
the banks would decrease their available
cash $4,000. but they would be drawing
the interest on the bonds. Instead Of this
the secretary is iOanlng TO any bank upon
its free bonds. In this way the western
demand upon the banks will be relieved.
and they will only have to protect them
selves"
Secretary Shaw has issued the following
statement:
Secretary Shaw has made arrange
ments to release about s4O00,00o OF the
treasury holdings. He has had a list
prepared Of those national banks through
out the country which held free or
pledged bonds at the date Of their last
report, and has made inquiry for Others.
After making allowance for changed
conditions since last report, he expects
this will release al least 1900 900. He has
sent notice TO all such that IL they win
send these bonds TO the treasurer Of the
United States In sums OF $4,000 or more
they will be designated as temporary de-
positaries and the face value Of the 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 depositar1es in the ordinary
way, which eompels them 10 buy bonds t.
the market at a large premium. thus pay
ing out more for the bonds than they
get from the government The customs
receipts are extremely heavy at this par
ticular season Of the year. and the cash
balance Of the treasurer has gradually
increased.
He has also decided to anticipate the
October interest amounting to about
s.3oo.oOo. and with this in view. orders
have been issued TO the various sub
treasures to cash such coupons as may
be presented them for payment. and the
treasurer Of the United States has been
instructed TO mail checks for interest on
the registered bonds. All this was de-
cided upon some days ago and letters
and telegrams prepared for today.
No Occasion for Alarm.
The secretary sees In present eondI-
tons no occasion for alarm He calls at
tention 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 fer
commercial paper. and for commercial
paper he has the greatest sOlieitude. He
is wei satisfied with his efforts TO In
crease circulation. which he decided upon
in the early summer. when present con-
diiions were plainly visible. and has the
presses busy preparing to meet an emer-
gency which he does not expect. but
which he thinks 1t IS wise to provide
against
Letter Made Public.
Ellis position as regards increasing cir
culatiOn Is perhaps best expressed in q
letter which he recently wrote a banker
that had already been buying bonds. and
which he has consented to make public
1t Is as follows:
Treasury Department. Washington.
Sept 10 lsas--My dear sir: Your letter
OF the sth Is received I find II well nigh
impossible to convey the purpose OF my
request even to the banks OF whom I
have made the request. much less to the
public.
'First-In case Of imminent danger or
actual disaster, will be compelled to
use government deposits to buy Increased
circulation.
'Second-I desire TO have from nfisen
TO fifty millions additional circulation
printed preparatory. so that 81 can be Is
sued in four days instead Of 10.
'Third-I will be glad to have the
banks holding deposits arrange II they
can. to borrow the bonds,
FOURTH desire to send no bank into
the market to buy bonds at the present
time.
Fifth do not care to have the cur
rency issued unless conditions make tt
well nigh imperative.
"T 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-
sponSble for existing conditions. I deeEa
myself justified in using the public funds
now held by various banks on deposit. as
think best for the public good. and IN
case OF trouble. may think best to use
these to buy increased circulation. the
banks now holding such funds having