The daily morning journal and courier., 1902-09-30
WILL RELEASE SSO,OOO,OOO.
SHAW'S PLAN TO FURTHER RE- LIZZIE MONEY STRINGENCY.

Secretary of the Treasury Announces That Hereafter Banks WnI Not be Required to Carry a Reserve Against Government Deposits Secured by GeV- ermment Bonds-ThIs VIII Permit Them to Increase Their Volume of Business s13O, ,OOO, ,OOO Secretary WilI Also Continue to Make Deposit of I'm ternaI Revenue aud Other Receipts.
 New York, Sept. 29.-Leslie M. Shaw, secretary of the treasury, who spent to- day in this city, declined to discuss the financial situation tonight further than to say that the treasury would co-op- crate as far as possible with the banks both east and west ill their effort to supply the necessary credit to do the unprecedented amount of business that is taxing railroads and steamship lines, as well as banks, to the utmost. He said he had never seen any good reason why banks holding a government de- posit secured by government bonds should be required to carry reserve against it,
 First, it is a deposit not likely to be called in time of stringency, and, sec- ond, if called the collateral will always sell for cash and in excess of the de- posit. He has had in mind ever since he took control of the treasury to re- lieve the banks of this burden. The comptroller of the currency agrees with the secretary, and therefore it is an- nounced that hereafter banks will not be required to carry reserve against government deposits secured by gov ernment bonds. The treasury has on deposit with various banks scattered throughout the country, from Maine tt California anl from Minnesota and New Orleans, in round numbers, one hundred and thirty millions, against which they have heretofore been com- pelled to hold more than thirty millions of gold or its equivalent. This decis- ion will release that much reserve and thirty millions additional credit.
 The secretary said he would continue to make deposits of internal revenue and miscellaneous receipts Gall availa- ble for that purpose), practically half million per day, as long as the situa- ton required, and if banks were unable to obtain government bonds to secure the same he would accept the same general class of securities, municipal bonds, etc., as remained available by the laws of the several states for sav- ings banks. By this 1t is not intended to loan in excess of 65 per cent. of the par value, and nothing will be accepted that has not been panic-tried and prov en saleahle for cash on call. He said he should, of course, determine each case by itself.
 The secretary further said he would accept security of the class described above for portion of the deposit held by each bank now holding a govern ment deposit and release enough per cent consols to cover any increased currency that the bank may desire to issue. He has recognized the possibil- ity of present conditions and therefore, as early as last July commenced print ing currency preparatory to the needs of the banks to handle the increased business of the fall trade and has on hand ready to be delivered an aggre- gate of about twenty-five millions. This can be sent out at the probable rate Of five millions a day if the banks desire to substitute the other security above designated for the release of the con- sols. This step was contemplated wher some months ago he asked the banks holding government deposits to order additional currency printed. The sec retarys additional, relief, therefore may be summoned up as follows:
 First, the release of practically thirty millions reserve which will permit the banks to increase their volume of busl' ness one hundred and thirty millions
 Second, the substitution of other se curity for consols now held by the gov ernment on condition that the same shall be used as basis for increased the limit allowed by law, accepting i banks will immediately increase thu volume twenty or twenty-five millions and will add thereto, if needed
 Third, the continuation of deposits t' the limit allowed by law, accepting i necessary security other than govern ment bonds.
 The secretary will remain in Nev York tomorrow and expects to visi the financial district.
 Chicago Iron Workers Quit.
 Chicago, Sept. 29.-Structural iro1