The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-09-14
SEESN NOCAUSEFOR ALARM
But Thinks it Best to Provide Against
Emergency.
TO ANTICIPATE THE OCTOBER INTEREST
This Amounts to About Four Millions, Two
Hundred Thousand. he Sec-etary's
Plan 10 Release the Banks
From Western Pressure
(By he Associated Press }


Washington, Sept. 13.-Secretary Shaw
today issued the following statements:
Secretary Shaw has made arrangements
10 release about $4OOO,OO0 of the Treas
ury holdings He has had a list pre-
pared of those national banks through
out the country which hold free or un-
pledged bonds at the date of their last
report and has made inquiry for others
After making allowance for changed con-
ditions since last report he expects this
viii release $4,000 600. He has sent no.
tice to all such that if they will send
these bonds to the Treasurer of the Uni
ted States in sums of fifty thousand dol
lars or more, they will be designated as
temporary depositaries 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 pref srence to designating de-
pCsitaries in The ordinary way. which
compels them to buy bonds in the mar
kct 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 been gradually in
creasing.
He also has decided TO anticipate the
October interest, amounting to about 81
100000. and with this In view orders
have been issued to the various Sub
Treasures to cash such coupons as may
be presented TO them for payment. and
the Treasurer of the United States has
been instructed mail checks for inter
est on the registered bonds. All this
was decided upon some days ago and let
ters and kilograms prepared for today.
The secretary sees in present condi-
tions no occasion for alarm. He calls
attention to the fact that there is no evi-
dcnco Of currency famine present or
prospective elsewhere than in New York.
aud even there the rate is not high for
commercial paper, and for commercial
paper he has the greater solicitude. He
is well satisfied with his efforts to in
crease circulation which he decided upon
in the early summer when present con-
ditions were plainly visible and has the
presses busy preparing to meet an cmer-
gency which he does not expect but which
he thinks It is wise to provide against.
Thus far he has made requests only of
such banks as hold large deposits and
have V9ry limited circulation and he is
not asking them to increase to the maxi
mum nor to increase at all for the pres
tnt. He does not desire to force the
tanks into the market to buy bonds al
q 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, believing
tits much better to hold bonds that win
yield 11a per cent even than to make call
loans at 2 per cent. He is therefore Civ
ing the banks that hold these free bonds
an opportunity to use them to most eX-
cellent advantage. This method, if pur-
sued by the hanks would give q slight
element of elasticity to our otherwise
ineIastic currency system.
Later the following was given out at
tho Treasury Department.,
The New York banks are complaining
because the unprecedented demand in
tho West is reducing their available cash
They therefore ask that they may he al
lowed to 70 into the market. pay 81 100
600 for a million bonds and receive from
the Treasury q million deroslt with tho
bonds as security. They seem willing to
do this and increase their reserve $250,-
eco against this increased liability. Thus
the banks would decrease their available
cash $3.50 600 but they would be drawing
the interest on the bonds. Instead of this
wherever situation U"on its free bonds.
10 this wav the Western demand uno9
the banks will be relieved and they will
only have TO nrotect themselves