The Montgomery advertiser., 1903-09-26
MILLIONS TO
 AID COMMERCE SECRETARY SHAW PROPOSES RESUMPTION OF REFUNDING. Bankers Express Relief-Fall strin- gency Likely to Be Averted by
 Release of $2o, ,o00, ,oo0 s. on Bonds.

Washington special to Chicago Record
 Herald.
 Twenty millions of dollars ovtsof the United States treasury and Back into the channels of commerce, If commerce needs 1t. That is the meaning of the refunding announcement made by Sec retary Shaw this morning.
 The secretary was careful to make his announcement early in the morning be- fore the opening of business on the stock exchanges. Moreover, the secret had been well kept, and So far as can be learned no one here or in Wall street had an inlkling of what was to happen.
 The news was well received in New York and in banking and business cir cles everywhere. Several bankers sent telegrams to the secretary expressing their satisfaction with the move. True, many holders of stocks in New York sought to get rid of them in expecta- ton that the market would harden on the receipt of the good news that the treasury had $20.0O00OO for the. business needs of the country, and the immediate effect was not apparent in stock values. But that Is an unimportant considera- ton.
 The vital point is the influence of the treasury policy upon the money market, and money is reported "easy" at all the financial centers. It is noteworthy that most of September has passed without any signs of a tight money market This month and October form the period about which bankers and business men have long been apprehensive Reports receiv- ed at the treasury indicate that the gem eraI caution exercised by the business world fin avoiding as far as possible hav- ing heavy obligations come due in these two months may reap good reward In entire escape from the yearly autumn stringency.
 At any rate, Secretary Shaw Is deter mined that the treasury shall give all the aid 1t can. To-day's refunding an nouncement was not called for by any exigency. but Is merely precautionary. It's good effects are already apparent. The secretary's policy was thus announced this morning:
 Secretary Shaw authorizes the state ment that. owing to the scarcity of 2 per cent. bonds, both for circulation and as security for government deposits. he will renew refunding operations to the ex- tent of 2O.000.000, in accordance with the previous circular. Of the total issue of $517, ,OO0, ,O00 of per cent. bonds the treas urer already holds for circulation and for deposits $4S0.000,000.
 "IIe also authorizes the statement that he will redeem the 5 per cent. bonds maturing Feb. 1, 1904. paying interest to maturity. Formal instructions to the sev- eral sub-treasuries authorizing them to redeem on presentation will be issued to- day. The banks that have had on file with the treasurer for thirty days or more per cent bonds as security for public deposits will be permitted to sub stitute approved state and municipal bonds therefor, which will be accepted at 70 per cent of their par value"
 The announcement came as surprise in financial circles, and there was gen. eral rush to telegraph offices and long distance phones by agents here to get into touch with their houses in New York and elsewhere.
 The redemption of the 5 per cent. bonds alone will throw about s2O,OOOOOO into the money market. There are about Sl9.- 600 0O0 of the per cents., and their value, with interest to maturity, will probably exceed 2O.OO0,0O0 The announcement is or the greatest importance to the holders of the per cent. bonds Since Sept. l, owing to the demand for per cent. bonds as security for deposits of public moneys there has been an advance of three points in the price of these bonds The renewal of refunding operations will unquestion- ably mean a sudden decline In the prices of these securities.