The Washington times., 1902-09-14
Makes Arrangements to
Release $4,OOO,OOO OF
Treasury Holdings.
INCREASE IN CIRCULATION
No Evidence of Currency Famine
Issue Will Give Element of Elasticity
to Money = Customs Receipts Ex-
tremely Heavy at This Season.

made arrangements 10 release about "a,
100000 of the Treasury holdings. H,
has had list prepared of those nation
al banks throughout the country which
held free or unpledged bonds at the dat'
of their last report, and has made in
quiry for others. After making allow
ance for changed conditions since las
report. he expects this will release a
least 81, 100000.
He has sent notice to all such that i
they will send these bonds to the Treas
ury of the United States in sums of $780,
600 or more they will be designated a,
temporary depositaries. and the ACE
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 prefer
once to designating depositaries in the
ordinary way, which compels them to
buy bonds in the market at a large pre-
mium, thus paying out more for the
bonds than they get from the Govern
ment. The customs receipts are ex-
tremely heavy at this particular season
of the year and the cash balance of the
Treasurer has been gradually increas-
ine
October Interest.
He has also decided to anticipate the
October interest. amounting to about
1920, 900, and with this in view, or
ders have been issued to the various
sukreasuries to cash such coupons as
may be presented to them for payment,
and the Treasurer of the United States
has been instructed to mail checks for
interest on the registered bonds.
The Secretary sees in present condi-
tions no occasion for alarm. He calls
attention to the fact that there is nc
evidence of a 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 Solici-
tude.
He is well satisfied with his efforts to
increase circulation, which he decided
upon in the early summer when present
conditions were plainly visible, and has
the presses busy preparing to meet an
emergency which he does not expect,
but which he thinks It is wise to pro-
vide 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
maximum nor to increase at all for the
present. He does not desire to force
the banks into the market to buy bonds
Af<x112 han fhn <,r,t
is willing to pay.
He desires 10 make the best possible
use of the free bonds now held by the
banks. Incidentally, he likes TO en-
courage banks to hold free bonds during
the Gull months, believing it is much
better to hold bonds that will yield 1ls
per cent even, than to make call loans
at per cent.
He is giving the banks that hold these
free bonds an opportunity to use them
to most excellent advantage. This meth>
cd, if pursued by the banks, would give
slight element of elasticity to our
otherwise inelastic currency system.
His position as regards increasing
circulation is perhaps best expressed in
a letter which he recently wrote a bank
that had been already buying bonds.
and which he has consented to make
public.
Letter of Request.
my Dear Sir-Your letter of the Sth
is received. find 1t well-nigh impossi
BILE to convey the purport of my request
even to the banks of whom j have made
the request, much less to the public.
"First-In case of imminent danger or
ocf,,aJ disaster will he comnelled m
use Government deposits to buy IN
creased circulation.
"Second-I desire to have from s15.-
600 900 to So, 100000 additional circula-
tion printed preparatory, SO that 1t can
be issued in four days instead of forty.
Third will be glad to have the
banks holdings deposits arrange, If they
can, to borrow the bonds.
FOURTH desire to send no bank into
the market to buy bonds at the present
time.
..Fifth-I do not care to have the cur
rency issued unless conditions make 1;
well-nigh imperative.
II am making no demand upon any
bank. The amount of their circulation
must be determined by their directors.
but inasmuch as the public holds the
Secretary of the Treasury somewhat re-
sponsible for existing conditions. /
deem myself justified in using the pub
lie funds now held by various banks on
good, and liz cast of trouble may think
best to use these to buy increased cir
the banks now holding such
funds having preference