The Lewiston teller. (Lewiston, Idaho) 1900-1905, 1902-09-18
NEW YORK NEEDS MORE CASH
ASK TREASURY DEPARTMENT.
For Money to Tide Over Present Cri-
sis-Money Has Been Sent to the
West to Move CrOp~-Srcretary
shaw Released %4,OOO,OOO in Gold
for New York Dnnkers.

Washington, Sept. 1.-THE following
was given out at the treasury depart
ment:
The New York banks are complaining
because the unprecedented mand in the
west Is reducing their available cash.
They therefore ask that they may be al
lowed to go into the market, pay 81 1OO-
ocO for million of bonds and receive
from the treasury a million deposit with
the bonds as security. They seem willing
TO do this, and increase the reserves $780,
600 against this increased liability. Thus
the banks would decrease their available
cash $3.50. 900. but they would be drawing
the interest on the bonds. Instead of THIS
the secretary is loaning to any bank upon
Its free bonds. In this way the western
demand upon the banks will be relieved.
and they will only have to protect them
selves"
Secretary Shaw has Issued the following
statement:
Secretary Shaw has made arrange
ments to release about 100000 OF the
treasury holdings. He has had list
prepared Of those national banks through
out the country which he'd free or
pledged bonds at the date of their last
report. and has made inquiry for others.
After making allowance for changed
conditions since last report. ne expects
this will release a least 100000. He has
sent notice to all such that If they will
send these bonds to the treasurer Of the
United States in sums of $4,000 or more
they will be designated as temporary de-
positaries and the face 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 preference II
designating depositaries in the ordinary
way, which compels them to buy bonds =:
the market at a large premium, thus pay
ing out more for the bonds than they
get from the government. The customs
receipts are extremely heavy at this par
ticular season of the year, and the cash
balance of the treasurer has gradually
increased.
He has also decided to anticipate the
October interest amounting to about
81, 100000, and with this in view, orders
have been issued to the various SUBJ
be presented them for payment. and the
treasurer of the United States has been
instructed to mail checks for interest on
the registered bonds All this was de-
cided upon some days ago. and letters
and kilograms prepared for today.
No Occasion for Alarm.
''The secretary sees in present condl-
tions no occasion for alarm. He calls at
tention to the fact that there is no evil
dence 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 commercial
paper he has the greatest solictude. He
is well satisfied with his efforts to in
crease circulation. which ne decided upon
in the early summer, when present con-
ditions were plainly visible, and has the
presses busy preparing to meet an emer-
gency which he does not expect, but
which he thinks 1t Is wise to provide
against.
Letter Made Public.
'His position as regards increasing cir
culation is perhaps best expressed in a
letter which he recently wrote a banker
that had already been buying bonds. and
which he has consented to make public
1t is as follows:
Treasury Department, Washington
Sept 10. 1902.-My dear sir: Your letter
Of the sth is received. I find it well nigh
impossible to convey the purpose of my
request even to the banks OF whom
have made the request. much less to the
public.
'First-In case of Imminent danger or
actual disaster. I will be compelled to
use government deposits to buy increased
circulation.
"'second-I desire to have from fifteen
to fifty millions additional circulation
printed preparatory. so that 1t can be is
sued in four days Instead Of 10.
Third will be glad to have the
banks holding deposits arrange, II they
can, to borrow the bonds
FOURTH desire to send no bank into
the market to buy bonds at the present
time.
Fifth do not care to have the cur
rency issued unless conditions make It
well nigh imperative.
"I 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 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 increased circulation. the
banks now holding such funds having
preference