New-York tribune., 1905-11-16
NO INCREASED DEPOSITS
Secretary Shasc Not Likely to Inter
fere sUith Money Situation.

Tho Secretary OF the Treasury is in the city
for day or two. and yesterday morning gave
out the following statement at the tlfth Avenue
Hotel In response TO inquiries as TO "ne'hei
or not ne had come to New York with the puf-
pose of relieving the stringency in the local
money market:
The fact that have not decided to increase
donos,ts Is proved by the fact that have not
announced an intention to do So na ,a lIe'
said would not and have never salo o4S mo
I am simply In the present tense q staiu-
patters' with an open mind NO oa: oanheI as t
asked It. and no banker of any prolalIIehJe paanI i
? boi1t evenly divided Some bulls nave az
yised some bears have advised agaIist, II
and every wrecker has demanded thaI 1t sii'i'
,rhe situation has nothing TO do with my ISL Nlsnt
to the city My daughters sail cary ttrs
ooorninp and as / had some customs matters
n IooIx after came as usual by the night tram.
NAV possibly see few merchants curing liio
dav and ascertain. if can. whetner the coiu. 'r
tio Of the market is being reflected in business
Sbould / decide to do anything, everybody WIN
l,nov- II as soon as anybody i shall be con-
.1,sa hr conditions instead of advice and
pne.res as TO what the Treasury Department
wifi do have been and are unnecessary anu III
advised
ssc-e.arv Shaw went down to the Sub-Treas
ury early in the afternoon, and after short call
,,non Assistant Treasurer Hamilton Fish pro-
ceeded to the Custom House, where he said he
had some routine business to attend to- The
sacre+arv saw no bankers wiiiie he was at the
s,,,h-Treasurv He would add nothing to his
formal statement given out at his hotel
II is now well understood in financial circles
that the Secretary will not interfere iE the
money market by the deposit of any moneys
unless he sees that the situation is having a bad
effect on general mercantile business. ana that
merchants are having difficulty in borrowing
money for their legitimate needs He wiz not
help out the Spectators in Wall Street and
o,,f,r Tho
spectators and the cliques. but also banks
which have lent encouragement to the rapid up
ward movement of the market.
In an indirect way however. the Secretary
has taken cognizance of the money market sit
uation by letting it be known that he VIII not
deal too strictly with banks which fall below
their legal reserves. He is known to be much
idispleased with the way in which some Of the
hanks encouraged the borrowing Of immense
sums of money for speculative purposes In the
course of the summer. and certain bankers
themselves have admitted to him that the banks
as whole have acted very unwisely, but have
dac1ered that they were forced into the course
by competition
Last summer Secretary Shaw advised the
Controller of the Currency to hold the banks
strictly TO account in the matter of reserves
hut he has now advised, it is understood that
the Controller give them a little leeway IN the
present emergency
He believes friends who in a position TO
know saw that the reserves of the national
hanks are maintained for emergencies, and that
sn emergencies they may be used. although with
extreme caution.
One bit Of important news which came out
Yesterday in the Street is that Secretary oha"'
I'm addition to following up his recommendations
for new laws giving greater elasticity 10 cur
rencv will .n ell probability present to congress
novel pIau which he has originated by Whlch
national banks in central reserve cities may he
required at times to carry reserves IN excess Oh
4he 25 per cent now required, the latter nsure
10 be the minimum.
In this way when the Secretary may ma
that the banks are making loans in undue VOL
urne he may require larger reserves-the amount
of cash held by the banks to be increased greou-
sllv however with the object of avertlng ex-
.ensive enforced liquidation of securities
He will probably pursue the same policy III
anttcpation of the yearly demand Tor luhos
for crop moving purposes. requiring the banks
To maintain in the summer reserve consider
shlv larger than % per cent, and relaxing the
requirement when the drain of money from tils
centre begins TO lessen
The opening rate for call money yesterday
was 10 ner. cent and the highest IL per cent
MANY loans were renewed at around per cent
The rate at the close was bl2 per cent. ms
stock market strong yesterday aIteI ;L InoIii, -
under the influence of the gradually increasing
ease in the money market, ana cIoSeu Win "N
yances throughout the list