Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-03-10
WILL TAKE ACTION
If the Occasion Arises for
Doing So.
WITH DEEP CONCERN
SECRETARY SHAW WATCHING
THE MONETARY SITUATION.
Planning to Extend Relief If It is
Needed - Payment for the
Panama Canal.
DEEP CONCERN

Secretary Shaw is watching with deep
concern the money situation in New York.
He is keeping in close touch with the best
sources of information OF a financial ma
ture in the metropolis, and there is every
reason to believe that he will take action
to relieve the condition of affairs If he
concludes that there is good reason for
doing so. The fact that he is fully mind
full of the various features of the situation
and alive to the prospects is sufficient to
convince those who know his methods that
he is planning relief from the treasury as
soon as the business of the country needs
1t. There are a good many ways open
to him to do this. He can further increase
the deposits of government money with the
national banks. Although he might not
wish to do this owing to the large amount
of government money now held by the
banks he would not hesitate If he thought
this the best one, and 1t may be stated
that this method is under consideration by
him. Another method to take out of the
treasury large amount of the funds now
held there would be by the purchase Of
bonds. The Secretary has heretofore, since
his incumbency of the office, somewhat op-
posed bond purchases because of their high
prices. Government bonds have steadily
declined in price until they are now at a
figure that would tempt the Secretary to
make purchases. There are outstanding of
the per cent loan of 1904 a total of $19,
,O50. These will soon expire, and their
purchase now would put out over $4,000 900
If all the holders should see fit to accept
the governments possible offer of sale.
Other classes of bonds are open for pur-
chase by the government at present figures.
Considerable interest may be anticipated
If the treasury sees fit. The April interest
may be anticipated within a short time
without deduction of a rebate. In fact.
Secretary Shaw has under consideration
number of plans for relief for the finan-
cal market if he feels that it is necessary
to afford this relief.
Payment for the Canal.
The fact that Secretary Shaw has quietly
announced that 1t Is his intention to pay
the $4O,OO0,OOO purchase money of the Pan
anna Canal Company in cash, as well as
the $1O,0O0.OOO bonus to Colombia, has
given an idea that the Treasury has no
method of relief if it Is to hold on to its
cash to meet those payments 1t Is we'll
known In official circles in Washington,
and to Secretary Shaw especially, that
the payment of the $50, 600, 600 is probably
a good many months off. certainly not be-
fore the dull season of the summer. By
that time the usual monthly surplus of the
treasury will have increased the cash hold
ings of the government to point when the
disbursement of the money can be made at
real benefit to the country and without
the necessity of Withdrawing dollar of
the government funds now held by national
bank depositaries. After the United States
Senate has ratified the canal treaty 1t must
be ratified by the senate of Colombia, a
newly elected body, In which there is much
hostility to the treaty as negotiated. That
much time will elapse before the Colombian
senate acts is generally regarded as GER
tain here. There is even doubt that the
Colombian senate will ratify the treaty at
fair tv,ta hnrn do
clare. Therefore the payment of $4,000,
600 cash account of the Panama canal
is some months off, probably not less than
three, at the lowest calculation, with the
possibility of indefinite delay II the Pacific
railroads should see fit to interpose ,inf'u
ences at their command as obstacles in
Colombia.
To Relieve the Money Market.
Pending the settlement of the canal pay
ments, yet long ways off, Secretary Shaw
can do much to relieve the mar
ket and at the same time have the funds
with which to meet the canal payments
when due Over and above the $150,OJO,0O
of money in depositaries at this time the
treasury holds $73,OO0OOO cash. Nearly all
secretaries Of the treasury have held that
there should remain in the treasury proper
at least S50,OO0,OO to meet extraordinary
expenditures or any crisis in money affairs.
But this line could be crossed and a much
less cash balance safely reached IL Secre-
tary Shaw cared to take such action There
is now S2},O00,030 above that imaginary
line, with the surplus in the treasury in
creasing each month. Secretary Shaw has
sufficient funds to aid the money market,
and when the canal payments are reached
withdraw from the national banks to make
up what is lacking in the treasury balance
itself.
1t is regarded as absolutely safe that Sec
retary Shaw will take no action In regard
to the canal payments that will cause a
stringency in money, and as quite likely
that he will extend relief to the money
market at the present time II he concludes
that ii would be wise to do SO.