The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-09-15
FIFTY BANKS GET 100000.
SECRETARY SHAW DESIGNATES
NEW DEPOSITORIES.
N Bank which Retires or Applies for
Retirement or Circulation Will He
Designated Is = Depository Of Public
Money or Receive Increased Deposits.

WASHINGTON, Sept. H-Secretary Shaw
las designated about fifty national banks
~. deposit cries of public money. These
hanks have not heretofore been national
dsno.i,orieS. The amount of money to
ha deposited with each institution varies
from so5 900 to $l5O,OOO, but the average
Is about $50 900, The total amount OF
money To be deposited under this order
If the Secretary is about $4OOO,OOO.
Secretary Shaw declined to-day TO dis
rnss the situation which has arisen as a
resul, Of the action of many national bank
in applying for the retirement of their
circulating notes. He does not doubt
,ba, this s result Of the high prices asked
for Government bonds, and that these high
nrices are. in turn, the result of the an
uouncement that the amount of the Federal
dsposi,s in banks would be increased, 1t
i, certain that no bank which retires it's
circulation will be designated as deposit
,orv, and it is equally certain that no pres
en depositary so acting will have its de-
posits increased by the Government.
With reference to the fifty additional
deposi, cries designated to-day, it is esti-
mated that none Of them has recently
applied for retirement Of its circulating
no, es and that IL any OF these banks should
applv for retirement of circulation that
bank would not be allowed to retain its
deposits Of public money.
this policy is adopted in view OF the
rapid retirement of bank circulation at a
time when the Secretary OF the Treasury
is irving 10 relieve what he regards as the
need for a larger circulating medium dur
ing the crop moving season. About " ,OOO,-
600 has been designated during the last
Two weeks for deposit with national banks
Under the law only $5,OOO,O 600 OF BANK CIR
cllation can be retired in a single month.
Several days ago applications for Septem-
her retirement aggregating about Ss,oOO,OOO
had been received at the office of the Comp
troller of the Currency.
Secretary Shaw is pleased with what
he saw of business and financial conditions
during his trip through the Middle West
from which he returned to Washington
saturday night He believes there is
need for more money in general circula-
lion in that part of the country, however,
AZ this time. and the bulk OF the funds
designated for deposit to-day will go to
the agricultural regions of the Mississippi
basin. The newly created repositories,
however, are scattered throughout the
United States, some of them being on the
Pacific Coast. others in the South and South
west. and still others in the East and in
New England.
Since Sept, 1. 81, 500 600 of Government
bonds to secure deposits made with rational
banks have been put up at the Treasury
This amount includes $500, 600 put up by
a national bank Of st. Louis. -Four other
banks in that city to which deposits were
promised have not yet qualified to receive
the funds.
When Secretary Shaw was in Chicago
n committee of st. Louis business meI
identified with the management OF the
Louisiana Purchase Exposition called upoI
him to ask that the S. 900 600 alpropriatec
by the Government for the Exposition
be placed on deposit in the banks OF thai
citv The Secretary replied that he coulc
NOT do that, because Of the existence OF 6
United States Sub-Treasurv in st. Louis
but that he would give the banks 81 500 OO'
of Federal deposits on deposit of municipal
bonds He asked that the amount OF
municipal bonds put up he $5,OOO,0OO. The
one half OF the Government appropriation
for the fair should I've disbursed. the Fedora
deposits should be withdrawn from the
banks This arrangement was accepted
by the st, Louis people.
Subsequently, however. the banks ex
pressed dissatisfaction among themselves
and in public that the Secretary OF the
Treasury had announced that the deposit,
we're to he made to relieve the flnancia
situation in St, Louis; in fact. that tn
deposits were strictly in the form of loca
relief The bankers declared that thi
was a reflection upon the soundness o
their institutions, and they declined Il
receive the deposits of Federal money
Secretary Shaw. however, has not beer
officially Informed Of this. The situation
Is well known to the Secretary, and the hes
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