Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1903-10-01
6HAW STARTLEs
1 MONEY BROKERS
ecretary Of Treasury Orders
81 Resumption of Refunding
4 Operations.
Z PSETS THE CORNER IN BONDS
PAS $4,000. 900 at His Command With
Which to Relieve Any strinseney
"a That May Occur in the Financial
N Fieid-Funds to Move Crops.
PsETS THE CORNER IN BONDS

Washington dispatch: Secretary
aw took the financial world by sur
Use and frustrated the plans OF Wall
feet brokers who have been engaged
@ forcing up the price, of per cent
|Fonds, and who are responsible for the
snks retiring large amount of cir
ulation, thus making money scarce
nd increasing the interest rates.
II Without warning Secretary Shaw
announced that ne had decided to re-
me refun5.ng operations for the
purpose Of preventing financial strin-
lsency s2d to furnish a supply OF cur
|rency which will enable the CONNER
cial world to secure money at reason
able rates to carry on business opera
tons. Owing to the scarcity of Q per
cent bonds, both for circulation and
the security Of the government depos-
its. he will resume refunding opera,
tons to the extent OF s2oO00,O0O and
he will redeem the per cent bonds
maturing Feb. 1. 1904, paying the in.
terest to maturity.
suSsSdSSt SHECuidtioU.
The effect of this action will be to
place In circulation about $4,000. 900,
which, In the opinion Of treasury off,
cials. win prevent money stringency
during the crop moving season. The
total value of the per cent bonds In
the hands of owners is approximately
$20.000,000. and this. together with the
refunding of 10000, 900 in per cents,
brings the total to $40,000,0 900. Secre.
tary Shaw already has created a fund
OF $40,000.000 from the internal reye-
nue. receipts to be placed in govern
ment repositories If there are signs Of
a money. squeeze. Therefore, when
these bonds are redeemed, $50, 900 900
will be put in circulation, which will
make money easy and keep interest
charges within reasonable bounds. IL
more funds are needed for this pur-
pose the administration will provide
them.
Breaks Up Bond Corner.
II was learned that certain brokers
In New York and other large cities
have been making contracts with
some banks for the delivery of 2 per
cent bonds. In order to deliver these
bonds the banks retired some of their
circulation. which action was partic-
ularly Objectionable at this time, when
there Is a strong demand for money.
Tho decision to refund will Illustrate
the plans Of the. brokers, and will eth
err decrease the price of 2 per cents,
which are abnormally high because of
the strong demand for them, or In
crease the price OF and per cents,
which are low. 1t is quite probable
the effect will be to reduce the price
OF 2 per cents. Another reason is
the wholesome effect it will have on
the commercial and industrial world.
1t is feared IL money should become
scarce and a consequent rise in inter
est rates follow, this would have a
disastrous effect on the business world
and cause partial cessation of build
ing operations and the postponement
of the Inauguration of new enter.
prises.
Security for Circulation.
OF the total issue of s517 100000 2
per cent bonds, the treasurer already
holds for circulation and for deposits
$4s0.0oo.00o. Formal instructions to
several subtreasuries authorizing
them to redeem the bonds on presen-
tation have been issued. The banks
that have had on file with the treas
urer for thirty days or more the S
per cent bonds as security for public
deposits will be permitted to substi-
tute approved state and municipal
bonds therefor, which win be accepted
at rs per cent of their par value.