Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1902-09-04
SECRETARY SHAW
SOLVES PROBLEM
Evolves Plan to Supply Cur
rency Wherewith to Move
the Crops.
INCREASE OF CIRCULATION
National Banks Are Requested to Is
sue Notes to the Full Amount Of
Their Capital Stock, Thus Furnish
ing Sufficient Cash.

Washington, Aug. 29.--Secretary of
the Treasury Shaw took steps to in
sure the movement of the enormous
crops soon to be harvested without
causing any stringency in the money
market.
The matter has been under consid-
Grafton by the secretary for some
time, and he has decided that the best
way out of the difficulty is to induce
the national banks to increase their
circulation. Such a suggestion was
made to the banks some time ago and
it is understood they have responded
in satisfactory manner.
Can issue Notes.
The national banks can increase
their circulation by $685., 000, 900 as
they are capitalized at 100000. 900,
and have issued notes amounting to
but $36S,000,0 900. The banks can issue
notes to the full value of their capital
If they deposit United States bonds in
the treasury to cover the notes.
Acting Secretary Allies, by authority
of Secretary Shaw, who is in New
York, made the following statement:
Meets Favorable Response.
"The secretary recently invited
some of the larger national banks in
the principal cities to order additional
amounts of circulating notes to be
printed. National banks are entitled
to issue circulation to the full amount
of their capital. The secretary has
hoped to introduce an element of
elasticity into the present system. His
suggestions to the various banks in
the larger cities that they make prep
aration for additional circulation have
met with favorable response.
To Be Used In Emergency.
ut is not his intention that they
should issue this additional circulation
all at once but only in case of actual
necessity and emergency. He does
not propose to initiate the currency in
any sense, but to be prepared to meet
the actual currency demand should
one arise. With this in view, those
banks which have made arrangements
to deposit United States bonds as Sc
curity for such additional circulation
have sent in their orders, and the sec
rotary has had all branches of the
treasury service busily engaged in ex-
pediting the preparation of the notes
pending possible emergency"
To Prevent Strinseney.
OF course, it win not be necessary
to issue so much currency, and the
secretary does not wish any more
printed than is absolutely necessary
He simply wants the currency made
elastic enough to meet the demands
To prevent money stringency dur.
ing the crop movement. Secretary
Shaw stands ready to cooperate with
the banks and to do everything in his
power. Shortly there win be heavy
demands on the banks for currency,
and at this season there is always
fear of money being scarce.
Has Solved Problem.
This important question has occu-
pied the attention OF the secretary of
the treasury for some time. and the
problem has practically been solved
for this season.
IL the banks do not increase their
circulation enough to supply the de-
mand the secretary can deposit some
of the government receipts in the ma
tional banks to tide over the busy
season.