The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-12-22
OPERATIONS
TO CEASE DECEMBER 81
Notice to That Effect by
Secretary Shaw.
FINANCIAL STRESS PASSED
Since September zs About sIs,oOO,OoO
in 5 and 4 Per Cents Have Been
Changed Into Consols.

Secretary Shaw, OF the Treasury De-
partment, has given notice that the re-
funding Of United States 3 per cent
bonds. loan of 190S-lslS. end per cent
bonds. funded loan Of 1867. now proceed
ing under the circular OF September o,
Will be discontinued after December 81
Bonds intended for refunding must be
forwarded so as to be received at the
treasury Department not later than De-
ceInber 81
Better Conditions.
The action Of the Secretary n bring
ing refunding operations to a close has
been expected for some days In financial
circles. 1t is taken as evidence that the
Secretary regards the financial situation
IN a condition so satisfactory as not to
require bolstering up at the hands OF
the Treasury Department, further than
the continuation OF the redemption OF
the per cent bonds which Will mature
February l.
The circular Of Secretary Shaw, under
cate Of September %, was sent out at z
time when money pinch was seriously
threatened A high price had been
reached by 2 per cent consols, which
were in great demand for use by the
banks as security for public moneys and
for circulation They had passed the
mark OF 10 and were threatening to go
even higher. The effect OF the high
price Of these bonds was TO food ths
Treasury with applications for with
drawal Of bonds deposited TO secure cir
culation.
Banks Thwarted Him
Secretary Shaw thus found that while
he was doing all he could to avert q
financial stringency by increasinls de-
poSits OF public moneys In banlug the
banks themselves were counteracting
his influence by seeking to reduce their
circulation. Under such circumstances
the resumption OF refunding operations
became imperative. The effect has been
to reduce the price OF 2 per cent con-
soils TO about log and to lessen the ap-
plications for Withdrawals OF bonds de-
posted TO secure circulation.
A small amount in the way Of net
premiums has been released By the
Treasury through refunding TO aid in
easing the. money situation Alors. with
the releasing OF funds by the y3demp-
ton OF the per ce-sGs and the tncreas-
ing OF deposits of public moneys in
banks. the effect has been 10 counter
danger OF crisis, as Secretary Shaw
has said, is past
The Bonds Offered.
Notice was given September 3 that
the Treasury would refund not to ex-
coed $20.0Oe,0Oc in per cents and per
cents into per cent consels-
AT the close Of business yesterday a
total of s14.s2s4o0 bonds of these issues
had been refunded
At the present rate OF rsfunding
less than three-fourths OF the $50. coo
VIII be refunded by December 81
II Is not likely the cessation Of
refunding viii be followed by any
increase In per cent
consois. At present. the applications for
of these bonds deposited to
secure circulation are scarce, but few
being listed for January, indicating 1T
tie effort ~. the part OF banks TO dis
pose of their holdings In bonds Of this
denOminatioK..
The fact that Panama Canal bonds
viii presumably be fiOated st an early
date viii also have a tendency 10 keep
the price OF per cents down