The herald-advance. (Milbank, S.D.) 1890-1922, 1902-10-03
SHAW HELPS soue
Takes steps Which viii ,p..
nanciaI Strino.,.'sW

nanciaI s%trir m., 'Rs''ss i
New York, Sept. 3~l.-secre,,.
the Treasury Shaw, who wss 4
York last night, has issued "a Nev
ment in which he says that ~ = STATE
will hereafter not be required ~ !. oaah
a reserve against government, ~ cam
secured by government honas ueposis
W y ! make available to-day over -; ;as
Secretary Shaw declined II ~.
the financial situation further t shsCas
say that the treasury would coo ousn %
as far as possible with the hantIp e1sA
East and West, in their effort Jog
ply the necessary credit to do ~ sup
precedented amount of business sa' ~ ~
is taking railroads and steamship ~, sasS
as well as banks, to the utmost Jug
Mr.. Shaw said he had nevor
any good reason why banks hold;s sua
government deposit secured NV
eminent bonds should be reoniross u
carry reserve against it. First !, "
a deposit not likely to be called in
Time Of ~Stringency
and, second, if called the col,o.,..
will always sell for cash and in ossa'
OF the deposit. He has, since be ,oss
control of the treasury, contemn,., ~.
relieving the banks of this burden
The controller of the curre,..
agrees with the secretary, and tha,s
fore 1t is announced that hereah,.
banks will not be required to carry !.
reserve against government den,s,,.
secured by government bonds.
The secretary said he would -,
tinue to make deposit OF interna, -
enue and miscellaneous receipts IAN
available for that purpose) practicall,
$500 600 per day, as long as the sitn,
ton required, and if banks were ~.
able to obtain government bonds tn ~
cure the same he would accent ,bA
same general class Of securities. munt
cipal bonds, etc, al are made ayaN.
able by the laws Of the several stala
for savings banks. BY this it is
Not intended to Loan
in Excess of 65 per cent of the IA,
value and nothing will be acceutd
that has not been panic-tried and
pl loved saleable for cash on call, "a
said he should of course determin.
each case by itself.
The secretary further said he would
accept security of the class deserted
above for q portion of the deposit held
by each bank nov holding a govern.
ment deposit, and release enough !
per cent consols to cover any in
creased currency that the bank NAV
desire to issue. He has recognized
the possibility Of present conditions
and therefore as early as last July
commenced printing currency prepara.
tory to the needs Of the banks to han.
die the increased business of the fall
trades, and has on hand ready to be
delivered an aggregate of about SIS,
600 600. This can be sent out at the
probable rate of SIS, 1000, 900 a day If the
banks desire to substitute the other
securities above designated for the re
lease of the consols. This
Step Was Contemplated
when some months ago he asked the
banks holding government deposits TO
order additional currency printed. The
secretary's additional relief Therefore
may be summed as follows:
First, the release of practically $50.
coo, 900 which will permit tho
banks to increase their volume Of
business $3.50, OO0, 900.
Second, the substitution of other sc
curity for consols o held by the
government on condition that the
same shall be used as a basis for 10.
CT eased circulation, which If accepted
by the banks will Immediately ID
crease the volume about $25,OOO,oW
and will add thereto if needed.
Third, the continuation OF the dep
csits to the limit allowed by law, &C.
cepting IL necessary security other
than government bonds.
Secretary Shaw will remain in new
York to-day and expects to visit the
financial district.