The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1902-09-16
RELEASE OF TREASURY HOLD
INGS DECIDED UPON
NATIONAL BANKS Get IT
Secretary Shaw Has Compiled List
of Banks Throughout the Coun-
try Having Free and Unpledged
BOnds-Face Value of These Bonds
to be Deposited to the Credit Of
the Treasury of the United states.
of Fifty Thousand Dollars or
More.

Washington, Sept. 13. - Secretary
Shaw today issued the following state
ment:
Secretary Shaw has made arrange
nients to release about $4,000, 900 of the
treasury holdings. He has had a list
prepared Of those rational banks
throughout the country, which hold
free or unpledged bonds at the date
Of their last report, and has made In
quiry for others. After making al
lowance for changed conditions since
last reports ne expects this will ra-
lease at least $40OO,00c He has sent
notice to all such that il they viii
send these bonds to the treasurer Of
the United States in sums Of fifty
thousand dollars or more, they will bs-
designated as temporary depositaries
and the face value of the bonds win
be deposited wi+h them to the credft
of the treasurer of the United States.
He has pursued this course II; prefer-
ence to designating depos:taries in the
ordinary way which compel5 them TO
buy bonds in the market st 4 large
premium, thus paying out more for the
bonds than they get from the govern
ment. The customs receipts are ex-
tremely heavy at this particular sea-
son of the year and the cash balance
of the treasurer has been gradually in
creaSinS.
He also has decided to anticipate
the October interest, amounting to
about $4,000, 900, and with this in view.
orders have been issued to thu various
Sub-treasurieS to cash such coupons
ha mt ta6 ffN fnr n ".
ment, and the treasurer of The United
States has been instructed ~ mail
checks for interest on the registerea
bonds. All this was decided upOr some
days ago and letters and t.,egrams
prepared for today.
The secretary sees III present condi-
| tions no occasion for alarm. He calls
attention to the fact that there is no
| evidence 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 pa. .;er he has the greater
| solicitude. He is well satisfied with
his efforts to increase circulation,
which he decided upon in the early
summer, when present conditions
We're plainly visible, and has the
presses busy preparing to meet an
| emergency, which he does not expect,
but which he thinks it is wise 20 pro-
| vide against. Thus far he mad made
requests only of such banks as hold
large deposits ard have very limited
circulation and he is not asking them
to increase to the maximum nor to in
crease at all for the pl esent. He does
not desire to force the banks into the
market to buy bonds at a rate higher
than the government is willing to pay.
He does desire to make the best pos
sible use Of the free bonds row held
by the banks. Incidentally he likes to
encourage banks to hold free bonds
| during the dull months, believing it is
much better to hold bonds that Will
yield 1-2 per cent. even than to make
| call loans at two per cent. He is there
| fore giving the banks that hold these
free bonds al opportunity to use them
! to most excellent advantage. The
method, if pursued by the banks would
| give a slight element of elasticity o1
| our otherwise inelaStic currency syS-
/ tenn.
| Later the following was given out at
| the treasury department:
The New York banks are complain
| ing because the unprecedented demand
| in the west is reducing their available
| cash. They therefore ask that they
| may be allowed to go into the market
| pay 81. 100000 or a million bonds and
| receive from the treasury a million de-
| posit with the bonds as security. They
seem willing to do this and increass
| their reserves $3.50, 1000 against this in.
| creased liability. Thus the bonds woult
| decrease their available cash s35O,00o
| but they would be drawing the
| interest on the bonds. Instead
| of this the secretary is loanins
| to any bank wherever situated, upon
| it's free bonds. In this way thu west
| ern demand upon the banks will be re-
lieved and they will only have to pro-
| tect themselves