New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-09-14
pr1IEF TO MONEY MARKET
,-cprTaRY SHAW TO RELEASE Si,ooO,ooO
OF TREASURY FUNDS.
ALSO ANTICIPATE OCTOBER INTER
EST. AMOUNTING TO 81 o0e-SEhS NJ
CAUSE FOR ALARM.

washington Sept. 13.-Secretary Shaw lssued
che following statement to-day:
-ore,ar, Shaw has made arrangements to re
% ahout 81 ee0ee0 of the Treasury holdings;
T. bas had a list prepared of those natloIidi
banks throughout the country Which heiu re .
~ unpedged bonds at the date OF lhei t l
" and has made inquiry for others Aitei
+aal.inp allowances for changed conditions slllce
-, reTort he expects this VIII release al ieds.
S1epa.g He has sent notice to all such 'hal
- ,hay will send these bonds 10 the treasure
&c tho United States in sums OF Seo-oo OF HoI0
tbey uilI he designated as temporary ue ~ =.
taries and the face value OF tne ponu us Te.e
denosited with them to the cTeoit oI tlIe -, "a.
~ az the United States. He has pursued TINS
,,,ree IN preference to designating deposita, le9
- .bn ordinary way. which compeis them TO pue
bords IN the market at a large premium mus
Doyine out more for the bonds than thes set
frcrn The government. The customs reCelpts az,
extremely heavy this particular season Oh stie
rasr and the cash balance of the treasurer mas
baer gradually increasing =, ,,..,,o
ne also has decided TO anticipate the OcIopeI
t,.aroc+ amounting TO about Si-t"', anu
III ~ =, ,-iey orders have been issued to the
,-srians sub-treasuries to cash such coupons a.
rnav he presented to them for payment ana :Ie
-Treoc,rer of the United States mas peeh IN
L.-,15 90 mil checks for interest on the reg
;stared honds. All this was decided upon 800
5avs ago and letters and telesraHls Piep"
for to-day. o.s;-;orc No
occasion for alarm. He calls attention 10 IN
fact that there is 10 evidence ol q +ban in
F.rnine nresent or prospective elsewhere nan
Eeyy-York: and even there the rate Is hoI III" II
for commercial paper. and Tor CoiiiiIrTI 40 Ill
per he has the greater soiici oaa circulation
satisfied with his efforts TO increase cli ~
b5cb he decided upon In the early suiillilel'
when present conditions were PLAINLY $50 ~
md has the presses busy preparing 10 III, -,
oar ~ which he does not expect. hut Wnch
he thinks Il is wise to provide asalIsI, -. O.
f.r he has made requests only OF suCa peil -,
- Iarca deposits and have very limited CIV u
I.,o1 and he is not asking these 10 increase =
the maximum TO increase al an 20 -
nresent He does not desire 10 loiCe "a. ,o;,be,
into the market 10 buy bonds al d re M 5nes
-, +bp government is willing to pay he ooes
sariro 10 make the best possible use OF li!t II
bonds now held by the banks lncloehIa 5 In ~
nm - ann months believing il is much petttI
"a hold bonds that viii yield 1t2 per cent - 9,
80, "a make cali loans at per cent he 4
s,-ofora swing the banks that hold these Te'
1-an5e an OppOTtunity TO use them 10 most y
ceent advantage TINS meIIoa ,ay,t oF eas.
+ini+y 70 our otherwise inelastic currency sys
ten. .-..,,.i,,r- c;ro-,Ie I; or
=. -.~ta1,e hest EXPRESSED in a letter which ht
ecen+iy wrote TO a bank that had been ALREADY
huying bonds and which ne has consented u
make public. 1t is as follows:
Treasury Department
Washington. September 10 lSt.
Nv Dear Sir: Your letter OF me oEn he nurnort
Of NV rs9nest even 10 the banks Of whom nave
made the request much less 20 691r or actual dis
asrer Zs-i be compelled TO use government Oe-
Hr7l-
lsleo o,'dEI desire 10 have from a5.eoecD TO ~
ta1 6l circulation printed preparatory SO ihdt Il
az, ne issued in four days instead OF forty -
TbirdI viii be glad to have the banks IS hoalTg
-aefTs arrange if they can. to borro" tne ooIis
to,rtT-T desire TO send no bank INTO the MAJ hel
-. INV bonds at the present time. ,.z
r-jrtb-I do not care 10 have the currency isS1'u
,,ase conditions make il welnlgh lIilpeIalNe- IT.,
an, making no demand upon any baHh- he
,o,IT,, Of their circulation must be determines .!
80 directors but inasmuch as the rubhc nolos
r. Secretary Of the Treasury soTneWfiI Tesi,oI,
.;i, Gov exisfnE conditions deem Tnyseif 1usliieu
~ nsing tho public funds now held by NarloI3s
bsrkr On depGsit as ] think best Tor the puplc
- arG in case of trouble / may thillK pest 70
,ea these 10 bu. increased circulation the pallhs
r,w holding such funds having preference
Later in the day the following statement was
issred At the Treasury Department:
The New-York banks are complaining because
the unprecedented demand in the west Is feduc-
re their available cash They therefore ask
hat 1aev may be allowed TO go into the mar
tst nav 81. 100000 for 100000 bonds. and re
oeive from the Treasury S1,oo0oD deposit with
me bonds as security. They seem willing 10 90
This and increase their reserve S2Joso against
mis- increased liability. Thus the banks would
,Iacreas s. their available cash S3Jo.so but they
would be dra wing the interest on the bonds- IN
s+asd Of this the Secretary is loaning TO any
hank wherever situated. upon its free ponds-
In This NAV the Western demand upon the banks
win be relieved and they will only have to pro-
themselves.