Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-04-16
BONDS ARE TAKEN READILY
Nearly one-Thr Of the Limit of $500,
100000 Proposed by Shaw Taken
Enormous Growth of Exports Also
Insures Large Source of Money
Supply.

then the other. so that instantly the
relation between them was apparent
One of these reports told of the speedy
manner in which the government per
cent bonds are being exchanged pur-
suant to the proposition of Secretary
Shaw for other bonds bearing higher
rate of interest, IS and As.
The other report gave the impressive
figures of international commerce of
the current fiscal year. There might
not appear to be any connection be-
tween these tw1~ statements, altho
both of them are issued with the APP
prevail and authority of the treasury
department But that subdivision of
the department which is an authority
over the fiscal system of the United
States seems to be, so To speak. at the
other end of the building from that
which is associated with our inter-
national commerce thru the collection
of the customs. Yet the relation is
very intimate, and will be found to be
of the utmost Importance next fall.
Secretary Shaw. disappointed at the
failure of congress to enact the Aldrich
bill. and understanding what the dis
erection is which the law gives him.
and, Furthermore. peering far enough
into the future to perceive that next
fall so many farmers and their field
hands will need money that there is
sure to be a stringency unless precau-
tons are taken so that it may be pre-
vented, decided in the first place to
make IT possible for our national banks
largely TO increase their circulation and
also determined to tempt the banks to
do that by means of propositions which
the laws permit him to offer.
So. soon after the adjournment of
congress, Secretary Shaw announced
that III the bankers or anybody else
would bring or send to him govern
ment bonds bearing per cent interest,
he would in exchange for them, give
other government bonds bearing per
cent interest. and would make it an
object for the bank to utilize these
bonds as security for national bank
notes He promised to accept as many
as 500, 100000, and altho here and
there severe criticism for this propo
sition was published, nevertheless, the
general opinion was that the PROPOSE
ton was fair one to the government.
altho the per cent bonds have thirty
hand, it was tempting one to the
banks.
Outside of financial circles, the first
was that the secretary
would be disappointed. For it was as
sumed that no one who possessed bonds
bearing or 4 per cent interest would
care to exchange them for securities
that paid no more than 2 per cent. 1t was
observed, however, that. after inquiry
bankers here who should know
what the disposition really was, no
doubt existed in their mind that, be-
fore the summer passed. the secretary
would find that he had received 500.
100000 of the old bonds and had ex-
changed for them a like amount of 2
per cents. In fact, such was the una
ninlity of this view. and it was express
ed with so much conviction, almost
as though TWAS now history. that it
was impossible not To suspect that
Shaw knew before he made
public the proposition what he might
expect, exactly as the Chancellor of the
knew before he made pub
lie the British war loan proposition
that American bankers, the Roths-
childs, and the Bank Of England would
take the whole of it, each receiving
one third.
Less than two months have passed
since the congress that denied the AL
irich bill adjourned, and today the an
comes from Washington
that nearly one-third of the total
of $lo0,O00,000 named by Sec
rotary Shaw in proposal has been re-
,eived by the treasury department.. If
within month almost one-third of
this proposition is accepted, it is reas-
enable to predict that before summer
comes the limit named by Secretary
Shaw, $100,000,000 will have been
reached 1t IS also apparent that this
IS Il banking or bankers exchange. The
financing of the $400.000,000 of , per
cents, which was one of the finest
achievements of McKinley's admins
tration, in its financial Department. was
made possible thru a community OF in
Lerest and of action on the part of the
banks. 1t never could have
been popular success.
The secretary believes that by en-
ploying these refunding per cents,
the banks during the summer or in the
fall may find it possible to take out so
great an amount of National bank cir
,ulation as to assure some relief when
he money stringency of the fall comes.
1t is one of the precautionary meas
ires Secretary Shaw by this action
partly anticipates condition which he
clearly forsees and one which the now
promised enormity of the harvest of
,ext summer would be sure to intens-
fly, at least temporarily.
On the other hand Secretary Shaw
must with much complacency have
,canned the reports sent out from his
last evening, which tells
If the international commerce OF the
United States from the first of last July
% the first of April. For in these fig
lres are to be discerned a promise for
, relief of money stringency next fall
which is quite as satisfactory a prom-
Sc as is found in the action of the
,anks in exchanging old bonds for new
, per cents.
March almost matches the record of
February thus Indicating that the SUI
oerb pace which begins to show itself
after the first of January is not only |
but is increasing. II there