Waterbury Democrat., 1902-09-13
S[G. SHAVrS STATEMENT.
He will Release $4,OOo, ,OOo of
 Treasury Holdings.

List of National Banks Which Held
 Free or Unp1edged Bonds To Be Pre-
 pared -Treasuries Are Ordered
 to Cash Coupons That May Be Pre-
 sented to Them, for Payment Washington, Sept Secretary Shaw to-day issued the following statement:
 Secretary Shaw has made arrange ments to release about $4,OO0,OO0 of the treasury holdings. He has had a list prepared of those, national banks throughout the country which held free or unpledged bonds at the date of their last report, and has made inquiry for others. After making allowances for changed conditions since last re- port, he expects this will release at least S4000,O00. He has sent notice to all such that if they will send these bonds to the treasurer of the United States in sums of fifty thousand dol lars or more, they will be designated as temporary Repositories and the face value of the bonds will be deposited With them to the credit of the treasur- CT or the United States. He has pur- sued this course in preference to de- signating Repositories in the ordinary way, which compels them to buy bonds 1n the market at a. large premium, thus paying out more for the bonds than l 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 mas been gradually increasing.
 lie also has decided to anticipate inc October interest, amounting to about S4,2O0,000, and with this in view orders nave been issued to the various sub- treasur1es to cash such coupons as may be presented to them for payment. anu the treasurer of the United States has been instructed to mail checks for interest on registered bonds. All this was decided upon some days ago and letters and telegrams prepared for to- Iday V The secretary sees in present condi- t1ons no occasion for alarm. He calls attention to the fact that there is no IeVldence or currency famine present or prospective elsewhere than in New York; and even there the rate is moi | commercial paper he has the grpatar solicitude. He is well satisfied win win his efforts to increase circulation which he decided upon in the early summer when present conditions were plainly visible and had the press hu- reau busy preparing to meet an emer- gency which he does not expect. b17t which he thinks it is wise to provide against Thus far he has made ra- quests only of such banks as hold large deposits and have very limited circulation, and he is not asking these to increase to the maximum nor to in- crease at all for the present He does not desire to force the banks into the market to buy bonds at a higher rate than the government is willing to pay.
 lie does desire to make the best pos- sible use of the free bonds now held by the banks. Incidentally he likes to encourage banks to hold free bonds durlng the dull months, believing if much better to hold bonds that yield l12 per cent even than to make call loans at 2 per cent. He is therefore giving the banks that hold these free bonds an opportunity to use them to most excellent advantage This meth od 1T pursued by the banks would give a slight element of elasticity to ourH otherwise inelastic currency sys- tenn.
 His position as regards increasing circulation is perhaps best expressed in letter which he recently wrote bank that had already been buying bonds, and which he has consented to make public. It is as follows:
 "TreaSury Department
 Washington, September 10. 1902.
 My Dear Sir:-Yopr letter of the eighth is received. I find it well nigh impossible to convey the purport of my request even to the banks of whom have made the request, much less to the public
 First, in case of imminent danger of actual disaster I will be compelled to use government deposits to buy in- creased circulation.
 Second, I desire to have from if teen to fifty millions circulation printed preparatory, so that it can be issued in four days instead of forty.
 Third, I will be glad to have the banks holding deposits arrange if they can to borrow the bonds.
 Fourth, I desire to send no bank into the market to buy bonds at the present time.
 Fifth, do not care to have the currency issued unless conditions make it well nigh imperative.
 T am making no demand on any bank. The amount of their circula- tion must be determined by their di- rectors but inasmuch as the public holds the secretary of the treasury somewhat responsible for conditions, I demand myself justified in the public funds now held by various banks on deposit as I think best for the public good, and in case of trouble I may think best to use these to buy increas- ed circulation, the banks now holding such funds have preference."
 Wilson A~>.1yvA... e->-~,4 orops.
 WASHINGTON, Sept. 13-Secretary