New-York tribune., 1902-08-28
NEW-YORK BANK RESERVE
TREASURY OFFICIALS FEAR THAT THE
SURPLUS WILL BE ALLOWED
TO GET TOO LOW.
fBY TET zGRApH TO THE rzIsusE.l !


Washington. Aug. 2I.-The last weekly state
ment Of averages OF the New-York Clearing
House banks is being closely studied by Treas
ury Department officials. some of whom do not
view with satisfaction the rather unusual strua-
ton revealed by that statement. and they hope
that this weeks statement will show a change
While there is nothing in the situation from the
point of view of the Treasury Department that
can be considered alarming or threatening still
II is suggested by experienced officials OF the
department that unless the banks in this weeks
statement make an exhibit of better relations
between their loan account ard their surplus
reserve account there will be cause 10 suspect
( that probably a well matured plan has been
started TO call the Treasury at not remote
date TO relieve a money stringency IN New
| York
Last Saturdays statement Of the associated
banks showed that the surplus reserve had
run down To less than 100000 as compared
with S1S000OO0 year ago and s23Ooo0o0 two
years ago Although Secretary Shaw has been
at his desk ever since Monday. he has refused
TO express an opinion concerning this situation
although that he is watching il carefully is
we'll understood 1t is contended that the con
dition referred 10 is not warranted by the
usual demands or exigencies Of business
Presumably, If they were called upon for an
explanation, the New-York bankers and fnan-
ciers responsible for the low condition Of their
reserve funds would attribute the cause 10 the
heavy drains made by the Western crop move
rnent. but the Treasury officials would see in
this more subterfuge than sound reason The
crop movement is always heavy at this time OF
year and reports show that the movement Is
no more urgent and little. if any larger IN
volume than it was in each Of the three preced-
ing years This, then, in the opinion OF Treas
ury experts cannot be offered as an excuse ror
the banks permitting their reserves TO be so
heavily drawn upon by their loan account
The real reason in their opinion. will soon
be revealed in loud demand from New-York
for the Treasury TO come 10 the relief of the
banks II is NOT considered as at all likely that
Secretary Shaw will heed this demand. and
that If the banks persist in what appears 70
be a deliberate conspiracy to make the govern
ment share their burdens caused by overload
ing" the Secretary will bring them up with a
sharp turn before they continue much longer
their present policy
Mr. Shaw's administration OF the Treasury
shows that he IS perfectly willing to respond 70
any just and proper demand to relieve pressure
in the money market by putting surplus funds
of the government into the channels OF trade
but II is said that he does not regard the pres
ert tendency as a result either OF necessity or
good business foresight IN all his latest con
versations on the general subject. he has not
laSitaTed TO rE2T II vas not MS piCc-i4- s'-'
pose TO buy bonds the sinking fund account
and ii IS not at all probable that he viii ofer
for sale any part OF the bond issue authorized
by the last Congress for the construction OF the
isthrlian canal. since the discovery or a deIect
in that law has been made which might make
the bonds unnarketable-
In the act authorizing the bonds no provision
was made for reducing the tax on the natlOha4
bank circulation which might be based or theSe
bonds TO one-half of l per cent. as was cone IN
the law authorizing the regular retunding tWos-
As the law now stands national banks buying
canal twos would have TO pay the old per
cent tax on the circulation based thereon ms
might prove q serious handicap secretary
shaw therefore. will try TO secure from Con
gress at its next session d prompt modlncatloh
OF the law, but there are always SO many uh-
cartainties 10 encounter in the senate "heI
that BODY comes to deal with gold bonds tnat
the Secretary prefers 10 keep the treasury
surplus we'll in hand until action by Congress IS
finally had
II therefore there is movement on foot IN
Nex-York as suspected. 10 force the Treasury
10 release any considerable portion OF Its sur
MUS the promoters OF that movement perhaps
would better acouatnt themselves more thor
oughIv with the purpose and policy OF secretary
Shaw before going too far. or some OF rh7
banks instead OF. the Treasury. may suffer