New-York tribune., 1902-10-01
FINANCIERS SEE SHAW.
Continued from page one.

o1 oHia an mad been seen and asked for his opinion
-, eeaiy Shaws action.
sid Is a radical departure from precedent"
-, ~ 81 NIeVeland's Secretary OF the Treasury.
needed in -, good thing-it IS just what was
\, II the present circumstances"
es,. -, ts understood that the Secretary received
i.ttIy a large number of dispatches from
menri9s OIanAeIs throughout the country, COM
,, - understood to be the Secretarys posi-
i,9l ~ 'Iidl MS statement OF Monday night had the
,++tale e-iale ehect OF releasing from reserve
re b- MS a little over S3O.OJO.OoO. Of which
,It snare o. the local banks is SlUUDO3OO. With
haSis ,oy'pp ,'pp OF practically new money as a
,f----' - SsH loanS could be made up four
ts...s,. .hat amount. or S4OU,DOtU as the SlO-
ryty,'o WOULD constitute the legal - per cent
,rNe VI the $4OOO1JOO deposits which would
~o" ~ the loans Tor an approximately equal
SUI rms estimate how ever - : as regarded by
oIe e bankers as too large E:ankeTs generally
aPPIoNed The action Of Secretary shaw in
rD.,, 9. eie reserve provision from the govern
@ienI @ deposits. but not SO ready tC COM
Ii,eliu H.u MS oIter to accept other than United
S'a'eS bonds as security for internal revenue
ana miscellaneous recefpts taking the position
that While the present Secretary's Judgment and
PioDi'y might be relied upon. he was establish
t,I5 precedent that might lead TO trouble in the
Iuture- His offer, however. il should be noted is
Ee'Iy restricted 10 banks able and willing TO take
~ 100 %auliIiohal circulation. policy which is very
~ ms hearJ Additional circulation can
NOT De taken out except at a loss and there is
tHe auued disadvantage that although the
Ithcy might be speedily sweled by taking out
f--'''''''" or more OF new circulation TO meet
the crop requirements in the West and other
1 udle necessities the automatic decrease of the
holuhle OF circulation when the necessity for the
increase shall have passed is under the pres
81. I'M ld", impossible, as only S3OOOUOO circula-
.tol t can De retired in any one month. For
~'Iese ~ reasons, II is thought. no very great
amount OF circulation will be taken out in the
IilIIleulate future, and consequently not large
ttaI atloeI' OF state and municipal bonds will be
OIIefed 10 the Secretary as substitutes for gov
SIinHlent bonds which the Secretary is willing to
'etgdse 70 cover increased circulation
o. me ioi!owing has been read and approved by
- e'aIy shaW as complete statement OF what
'e mas done 10 relieve the money market:
fIst-He mas dispensed with reserve against
sO'efhhlent deposits in national banks which
= ,.aSd S1ISd oy government bonds The effect
- III De 70 reduce the net deposits OF the
New-4ork banks as shown in the next bank
Ir,J 1IlatelhehJ oy about $4u.UOOOOO and of the
banks all over the country by Sl:siOOOODD.
ihls releases a reserve sufficient TO carry loans
10 the amount of these deposits al once
Secohd-he has authorized the substitution
LoI the : per cent bonds held d security
Tor deposits Of government money such securi-
tes as savings banks are permitted 10 invest
IN az sufficient margin, upon condition that
',SulaSlon on Is taken out TO the full value of the
per cent bonds thus released. Arrangements
nav been made with certain banks here, in
CAIcaSo and elsewhere 10 take out S2J,UJUtD
circulation at once, and the notes have been
printed and are ready for issue. This relief will
not 90 beyond the S2ItssltHO referred TO- and
may not reach that far a reserve must be
carried against deposits. secured by other than
government bonds
+-'44N rs HdS olLeIel 10 anticipate the IL
terest on all United States bonds to the end of
the hscal year at a rebate OF the rate of ~
per cent per annum. beginning on October L.
Ihis offer will be accepted generally By banks
upon bonds which they own. but net upon bOr-
rOwed bonds.
FouTth-He Will continue To deposit current
collections from internal revenue and from mis-
celaneoUs sources In national banks for thirty
or sixty days as heretofore. against United
States bonds.
Fifth-He has offered to buy the $19,OOOOOO of
per cent bonds 100.