The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-15
SHAW AIDS GOLD IMPORTS.
ssSUB-TREASURY TO ADVANCE THE
90 AMOUNTS ENGAGED ABROAD.

SDeposits OF National Banks to BE Increased
to the Extent OF Gold In transportation
on the Deposit OF COllateral-Sl2 IOOO,-
j 600 More Contracted For by Q Banks.
Secretary Of the Treasury Shaw, who
was In town yesterday and visited the Sub
Treasury, made public an entirely new plan
for facilitating the import of gold into this
country. The plan went into operation
yesterday and engagements Of gold ag-
Rregating SIC ,0oO, 1000 had been made under
1t before the Secretary announced IT to the
public.
Briefly the secretary's plan Is to provide
those banks engaging gold for IMPORT
with gold from the United States Treasury
to the amount Of that engaged abroad.
The Treasury gold Ia loaned the banks
only for the period between the engage
ment and arrival OF the gold imported
Banks are obliged to secure the Treasury
BY the deposit Of savings bank collateral
es security. Secretary Shaw's statement
If the plan follows:
sThe price Of exchange having reached
the point where gold ought to have been
imported, and believing the reason why it
was not engaged to be the loss OF It's use
during transit, the Sub-Treasury at New
York was authorized on Thursday after
noon tn accept bonds available as security
to savings banks and to increase the deposit
of any national bank desiring to import
gold to any amount not exceeding S. 10000
to any one bank, the same to be returned
Immediately on the arrival o. the gold
On Friday the limit was removed authorize
ing the acceptance Of security and to in
crease the deposit to any amount when
assured that the money would be imme-
4 diAtely used in the engagement OF goldfor
shipment to the United States. Twelve
million dollars has been thus distributed
The Secretary called attention to the
fact that in this way the banks will be able
to import gold without losing its use during
e shipment. Formerly the banks were per-
, mitted to count in their reserve gold in
transit. This rule has been changed and
the new rule is now adopted of advancing
the money on proper security to be re-
turned Immediately on the arrival Of the
gold.
Although the new rule went into effect
Thursday, it was retroactive as far as the
engagement of $1,000 900 in eagles by the
National City Bank on Wednesday was
= concerned. The 81 100000 engaged by
the Guaranty Trust Company was not
engaged under the Secretary, for none
but national banks is affected.
In addition the National City Bank en-
q, gagged $4,000, 900 in London yesterday morn
ing and the Hanover National Bank &2,-
900 900. These engagements account for
the. entire Sl2, OOO, 600 announced as dis
tributed from the Sub-Treasury. At the
Hanover National Bank it was announced
81. that that institution expected to make
further engagements and was, in fact
determined to import all the gold 1t could
secure. Altogether about $17,ooo,ooO in
gold has beer either imported or engaged
for import since the movement of gold to
this side began on March IL.
The great advantage Of the new plan to
tho banks is that it prevents loss CT interest
on gold during the ten days usually reck-
oned as the time between engagement and
arrival.
Bankers were unanimous yesterday in
the belief that the new plan would bring
gold to this country in large amounts and
would put an end to all fears of a further
contraction of credit and high rates for
money. in the near future. Yesterday
being Saturday, there was no loan business,
but there was a belief everywhere that
both call and time money rates would be at
very low points on the opening Of business
tn-nOr row.