Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-09-15
Secretary Shaw Provides For
Distribution of a Portion
of $40, 900 Fund
WILL NOT RETARD MOVEMENT
The Secretary Determined There Shall
be No Lack Of Funds With Which
to place Crops on Market-shaw on
Business situation-General News Of
the Day.

1
the Treasury Shaw has provided for
| the distribution of a portion of the
| $40 000O 900 fund segregated for the pur-
pose of preventing scarcity of money
during the movement of crops by des-
ignating fifty additional national banks
as deposltaries of public money.
These institutions are scattered
turnout the country. and from $4,000
to $4,000 will be deposited in each
bank, the average for each institution
being $4,000. In the near future other
|depositaries will be chosen, as Secre-
|tary Shaw Is determined that the coun-
try shall not suffer for funds while the
enormous crops ate being moved.
Secretary Shaw has declined to dis
cuss the situation which has arisen as
a result of the action Of many national
banks in applying for the retirement of
their circulating notes. He does not
doubt that this Is a result of the high
prices asked for government bonds, and
that these high prices are, in turn, the
result of the announcements that the
amount Of federal deposits in the banks
would be increased.
1t is certain that no bank which re-
tires it's circulation will be designated
as depository, and it Is equally GER
tain that no present deposltary SO act
ing will have its deposits increased by
the government.
Furthermore, II any rational bank
retires it's circulating notes the gov
eminent funds on deposit with II are
more than likely to be withdrawn. This
policy will be adopted in view of the
rapid retirement of bank circulation at
{. time when the secretary Of the treas
ury is trying to relieve what he regards
rs the need for larger circulating
medium during the crop moving sea-
son. Several days ago applications
were received for the retirement of CIR
culating notes to the. amount of S.
100000 during September. Under the
law only s3,o00,00O can be retired In
one month.
Secretary Shaw. who recently re-
turned from the west, is we'll pleased
with the business and financial condi
tons In the middle west. He Is con
Ivlnced that there is need for more
money In general circulation in that
section of the country. and the largest
share of the fund will be placed In the
banks of the Mississippi valley.
Since Sept. government bonds to
the amount of s2,592,500 to Sc
Ieure deposits nade with national banks
amount includes 100000 put up by
n. - ,Se ISr,,
other banks In that city to which de-
posits were promised have not yet
qualified to receive funds.
When Secretary Shaw was in Chi
cago a committee Of st. Louis business
men identified with the management of
the Louisiana Purchase Exposition
called upon him to ask that the So
100000 appropriated by the government
for the exposition and which Is soor
to becoms, available be placed on de-
post in the banks of that city. The
secretary replied that he could not do
that because of the existence of
United States sub treasury in st.
Louis, but that he would give the
banks s2,500,000 OF federal deposits on
the deposit of municipal bonds. He
asked that the amount of municipal
bonds put up be s5,00O.0Oo. The ar
rangement was that as soon as about
one-half of the government appropria-
ton for the fair should be disbursed
the federal deposits should be with
drawn from the banks. This arrange
ment was accepted by the ST. Louis
people. Subsequently, however, the
banks expressed dissatisfaction among
themselves, and in public, chat the sec
rotary of the treasury had announced
that the deposits We're to be made to
relieve the financial situation in ST.
Louis; In fact, that the deposits were
strictly in the form of local relief. The
bankers declared this was a reflection
upon the soundness of their institu-
lions and they declined to receive the
deposits OF federal money. Secretary
Shaw. however, has not been officially
informed of this. The situation is well
known to the secretary and the best of
feeling has not been produced