The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1902-10-10
SHAW GIVES BANKS AID.
Releases Reserves Held to Secure
: the Governments Deposits
in National Banks.
ACTION FREES saO,OOO,0OO IN GOLD.
Increases Possible Credits to the Elk.
tent of $1aO,OOO, OOO-wilI Help Al
SO in Other Directions to Relieve
the Money Stringency-Stock Mar
ket Verges on Panic.

New York, Sept. 3O.-Secretary of
the Treasury Shaw, who was in New
York Monday night, has issued
statement in which he says that the
banks will hereafter not be required
to carry a reserve against govern
ment deposits secured by govern
ment bonds. This will make avail
able to-day over $3O,0O0,0Go. Secre-
tary Shaw declined to discuss the
financial situation further than to
say that the treasury would cooper
ate as far-as possible with the banks
both east and west in their effort to
supply the necessary credit to do the
unprecedented amount of business
that is taxing railroads and steam
ship lines, as well as banks, to the
utmost. Mr.. Shaw said he had never
seen any good reason why banks
holding a government deposit Sc
cured by government bonds, should
be required to carry reserve against
it. First, it is deposit not likely to
be called in time of stringency,
and, second, if called the collateral
will always sell for cash and in ex-
cess of the deposit. He has since he
took control of the treasury contem-
plated relieving the banks of this
burden.
Will Release $3O,OOO.OOO.
The comptroller of the currency
agrees with the secretary, and there
fore it is announced that hereafter
banks will not be required to carry
reserve against government deposits
secured by government bonds. The
treasury has on deposit with several
banks, scattered throughout the coun-
try from Maine to California and from
Minnesota to New Orleans, in round
numbers $130,OOO.O00, against which
they have heretofore been COM
PEELED to hold more than $30,000,000
of gold or its equivalent. This de-
cision will release that much reserve
and $30,OO0,O00 additional credit.
Will Help in Other Directions.
The secretary said he would continue
to make deposit of internal revenue
and miscellaneous receipts (all avail
able for that purpose), practically
POOU,OOO pei 40 loLS oo OiAS SAoo
alton required, and if banks were I'M
able to obtain government bonds to
secure the same he would accept the
same general class of securities, NUM-
cipal bonds, ETC., as are made avail
able by the laws of the several states
for savings banks. BY this time it
| is not intended to loan in excess of
per cent. of the par value, and nothing
will be accepted that has not been
panic tried and proven salable for
cash. He said he should, of course, de-
termine each case by itself.
Market Braced Up.
New York, Oct. 1.-The stock mar
ket which closed Monday utterly de-
moralized as a result of stringent
monetary conditions and other unfa-
vorable circumstances, made sensa-
tional recovery yesterday. The chief
causes for the complete reversal were
the action of Secretary Shaw in re-
moving the restraint on bank re-
serves.
Stringency Relieved.
| New York, Oct. 1.-The monetary
stringency is finally relieved by Secre-
tary Shaw's action. Interest will re-
main high to check speculation till crop
funds return.