The daily morning journal and courier., 1906-12-11
SECRETARY SHAW 10 THE
 MONEY ]. AFKST'S RELIEF
'VILL MEET STRING C ENC ' TO EX- TENT OFTWENTK MILLION
 DOLLARS.

VIII Deposit Half This Sum in Existing
 DepOsitorieS in Certain Cities--With
 the Other He will Buy Ten Million of
 BOnds of 1007-Declarcs "Our Bless
 iugs Are the Real Cause of the Ac-
 tunl Strihgcncy in Money"
 Washington, Dec. 1O.-secretary Shaw had an interview to-day with the Bank CTS committee now in session in this city, and later in the day made the following announcement: T have re- ceiVed in the last ten days an unusu- ally large number of letters from busi- ness men representing all sections of the country, complaining Qf the extra ordinary high rates of interest. I have conferred during the same period, by letter or personally, with a large num- Der of bankers scattered through the south and middle west, as well as in the east I have to-day conferred with the committee of the American Bank CTS association now in session in this city. These gentlemen represent Chi cage, St. Louis New Orleans, Atlanta Pittsburg, Indianapolis, Des Moines and ether cities. From the best inform ation can get l think the following describes the situation fairly well;
 Our blessings are the real cause of the actual stringency in money, rec5g- ni2el everywhere. An unusually large crop and uneXamped industrial activ- ity have created an unprecedented de- mand for money. The world is every where prosperous and money is in great demand throughout Europe as well as in the United States We never had such volume of credits, and they are based on an unequalled volume of as- sets. The manufacturers of cotton are buying that staple by the train loa1 The cotton planter, unlike his western farmer, demands actual cash, and he carries 1t home in his pocket The west ern farmer is paid in cash, which he deposits in the bank to his credit, and therefore does not absorb actual money, as does the cotton planter. This money should be returned to the banks when She planter settles with his merchant soon after the first of January But between now and then the cotton con- suming country, as well as the cotton producing country. is short of money.
 New England has sent millions to the south, and the manufacturers of cotton throughout the south have ex- hausted the capacity of local banks and are trying to borrow elsewhere. There is no occasion for alarm, but believe there is occasion for relief. This I have decided to grant in the following manner:
 ''I will deposit $10,000,0OO in existing depositorles In the cities designated be- low, to be secured by bonds acceptable for savings banks investments under the laws of New York and Massachu- setts, taken at ninety per cent of their value; these deposits to be returned, one-half on January 20, and the re- mainder on February 1.
 q will also buy $1O,O00,OOO of the bonds of 1907 at the following prices: Regis tered bonds ex-interest at 1O1, and cou- pon bonds at 1O2, In the event that the bonds purchased are now held as secur- ity for government deposits, security of the character above indicated will be accepted in lieu thereof, Not more than $1 ,OOe,0OO worth, however, will be pur- chased from any single institution un- der these conditions.
 The deposits will be made as follows: New York and New Orleans, $1, ,5O0, ,O0O| each. poston Philadelnhia RaItiro,ora Chicago and St. Louis, $1,OOOOOO each; Cincinnati Louisville. Atlanta and Memphis, $500, 900.