Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1902-09-13
FOR RELIEF or THE BANKS.
Secretary Shaw viii Release 100000 Of
Treasury Holdings
No Prospect Of Currency Famine Ex-
cept In New York, and This VIII
He Fully Provided Against

Washington, Sept. l3.--Secy, Shaw to-
day Issued the following statement:
"Secy. Shaw has made arrangements
to release about s4.0O0.O00 Of the treas
ury holdings. He has had list pre-
pared 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 at least 100000. He
has sent notice to all such that If they
VIII send these bonds to the treasurer
or the United States In sums of $50.
0OO or more they win be designated as
temporary depositaries and the face
value Of the bonds win be deposited
with them to the credit Of the treas
urer OF the United States. He has
pursued this course In preference TO
designating depositarles In the ordinary
way, which compels them to buy bonds
In the market at large premium thus
paying out more for the bonds than
they get from the government. The
customs receipts are extremely heavy
at this particular season OF the year,
and the cash balance OF the treasurer
has gradually increased
He has also decided to anticipate the
October interest, amounting 10 about
0OO. and with this In view, orders
have been issued TO the various sub
treasures 10 cash such coupons as may
be presented them for payment and the
treasurer OF the United States 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-
day.
The secretary sees In present condi-
lions no occasion for alarm. He calls
attention to the fact that there IL no
evidence 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 solicit
tude. He is well satisfied with his eff
forts to increase circulation which he
decided upon In the early summer
when present conditions were plainly
visible, and has the presses busy pre-
pairing to meet an emergency which he
does not expect 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 max
imum, nor 10 increase al all for the
present. He does not desire TO force
the banks into the market 10 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. Incl
dentally he likes TO encourage banks to
hold free bonds during the dull months,
believing II Is much better TO hold
bonds that will yield one half per cent
than TO make call loans at two per cent.
He is therefore giving the banks that
hold these an opportunity 10 use them
TO most excellent advantage. This
method. II pursued by the banks. would
give a slight element Of elasticity TO
our otherwise inelastic currency sys-
TEN.
His position as regards incre1 sing
circulation is perhaps best expressed
in letter which he decently wrote a
banker that had already been buv!ng
bonds, ard which he has consented TO
make public as follows:
Treasury Department. Washing
ton. Sept 10, 1909: My Dear Sir: Your
letter Of the sth Is received find IL
well nigh impossible 10 convey the pur-
port OF my request even 20 the banks
Of whom ! have made the request.m
less 10 the public.
'First-In case OF eminent danger or
actual disaster ! viii he compelled to