New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-09-24
MONEY MARKET RELIEF.
MORE BOND REFUNDING.
Secretary Shasc VII Also Rcdesm
IS Maturing February I, 1904.

IFT0N !
Washington. Sept 23--SeCretary Shaw to-day
Instituted several measures OF monetary relief
which he believes VIII avert all possibility Of a
monetary strfnCencv when the crops Of the
country are sent To market this fall He offers
70 nay the interest 10 maturity and take up
the loan known rs the per cent bonds 81 l'N'4
which mature on February !. There are he
tween S1ao00oo0 ard $50 0o0olo worth Of these
bonds outstanding. and 81 is believed that ad-
vantage a. the Secretary's offer VIII he taken.
~ least up % within 100000 81 the fun
amount
IN order that the bond market may he relieved
and the recent demand for - per cent bonds
needed as security FOR tho deposit ~ public
moneys with national hanks as well as Tor ma
tional circulation he met. the Secretary offers
u refund n the amount n $4,000 600 the 3 and
re- cent bonds n 1907 and 1905 This Is
really an extension Of the refunding order made
several months ago In which the Secretary
offered 20 refund she same bonds 20 the extent
- S1oooo0O00 Before he closed that ofer
advantage had been taken ~ il 20 The extent ~
SS0ooo0eo Since tho close ~ the last refund
ing operations - hos become known that Secre-
r-rv shaw has created a reserve fund ~ internal
revenue receipts 10 the amount 81 S4o"1"eh
which he is allowed under the law 20 oepost
IN national hanks Government bonds win he
since The existence ~ the fund became known
tre price of per cent bonds has risen steadily
,rt1 81 has reached 100. This price made II
rraftarlo for some national hanks 70 retire cir
cgratfor in order 90 market their bonds thus re-
leased at rho hizh price.
OPTION SYNDICATE cHECKNATED.
A, Investigation or the rush of national hanks
n retire thefr circulation i'm order TO release
-ref- bonds has developed The existence OF
tpe~rIa-fve syu5t~a-e which obtained options
from many ~ the hanks on their bonds ~
GOOD round figure Under the law only S3"te.-
600 Of national hank circulation can he retired
In any one month and the stampede for the
bonds has been such as 20 nh The looks for sew
eral months ahead. BY Unexpectedly adding
S2app00aQ TO the possible supply Of per cent
bonds The Secretary has unqUestionahly mace
The options obtained less valuable than they
would otherwise have been. and il is not unlikely
that instead Of realizing profit the option syn
dictate Will he money ou1 when IL takes the
BONDS from the banks.
The las, r,ronosition contained in Secretary
srav's brief announcement is that banks which
have had = per cent bonds on file with the
Treasury Department for thirty days or more as
flrl.rirv FOR circulation or deposits ~ public
money win be permitted ~ substitute approved
state and municipal bonds therefor The Sec
,erarv exrlaiued that this offer applied 20 the
? nor cent bonds Of 1904 state and municipal
bonds will he accepted up to - per cent Of their
par value There are $4,000 OF the . per
cent bonds ~ 1ag4 deposited with the Treasury.
1r-er ~ which aro undoubtedly subject 10 the
substitution proposition
In figuring uo what has reen done by Sec
-eta~v shaw 20 relieve possible monetary
etriueeucv This fan there can he included, first
tho setting aside 81 the S4Uo0ooo0 Of internal
revenue receipts for distribution among the
hanks as government deposits. a portion Of
which amount has already been 50 deposited:
seecr5 -he deposit with several banks Of about
81 100000 from the current receipts from, inter-
nal revenue SOURCES. which amount has not ma
te~ianv depleted she SioOo00 0o; third. the dis
hursemert of 5000 On0 70 the 81 Louis EN-
position COMPANY as the governments share in
the cost ~ the Louisiana Purchase Exposition
which disbursement is now in progress, and,
fourth. the offer made to-day 20 pay tEa interest
81 fun and redeem the . per cent bonds Of 1898,
which as stated. win release something like
S2Oo00000 and make "a total of over S30O00H.
with this money in hand and the 100000
reserve which can be drawn on II necessary, IL
s. dif7cult the Secretary thinks. 10 see how any
serious financial stringencv can occur This fan
Secretary shav's action had no effect IN Wall
Street YESTERDAY Ear as Che stock market
concerned. The consensus of opinion IN banking
circles seemed 10 bo rhaf rHa r.Gn5irg operation
was in Zinc with what -sEIIr'd 90 relieve the
emharraesrreut due 90 tho high price % per cent
bonds U was said that the situation had reached
. stage where ir practically impossible for
Isrks thar did NOT hole per cent bonds 10 take
oct new circulation. They could not get the bonds
o. figures which would make the transa rtion proht-
Eh.n
Tie redemption would. 81 was said relieve the
money market curing the October demand Tor
moving crops. The total disbursement 81 was
minated. would aggregate about 50 0aooi. including
principal and interest