The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-12-11
SHORTAGE DUE
TO PROSPERITY
Not Enough Money in the
Country to Pay Planters
for Crops.
COTTON MEN DEMAND CASH
SECRETARY SHAW COMES TO
THE RESCUE.

Washington, Dec. 10.-Secretary Shaw
had an interview today with the bank
ers' committee now in session in this
city, and later in the day made the fol-
lowing announcement:
Il have received in the last ten days
an unusually large number of letters
from business men representing all sec
tons of the country. complaining of the
extraordinary high rates of interest. I
have conferred during the same period
by letter or personally, with a large
number of bankers scattered through
the south and middle west, as well as
i'm the east L have today conferred
with the committee of the American
Bankers association now I'm session in
the city. These gentlemen represent
Chicago st. Louis, New Orleans, At
lanta. Pittsburg, indianapolis, Des
Moines and other cities. From the best
information 1 can get / think the fol-
lowing describes the situation fairly
well:
Prosperity the Cause.
Our blessings are the real cause OF
the actual stringency i'm money. recog-
nized everywhere. An unusually large
crop and unexampled industrial activi-
~ have created an unprecedented de-
mand for money The world is every
where prosperous and money IS in great
demand throughout Europe. as well rs
in the United States. We never had
such a volume of credits. and they are
based on an unequalled volume of as
sets. The manufacturers of cotton are
buying that staple by the trainload.
The cotton planter. unlike the western
farmer, demands actual cash. and he
carries 1t home in his pocket. The west
ern farmer i'm paid in checks. which nc
deposits in the bank TO his credit, and
therefore he does not absorb actual
money as the cotton planter. This
money should be returned 20 the BANKS
when the planter settles with his mer-
chant soon after the first OF January,
but between now and then the cotton
consuming countries. as VOL as the
cotton producing country, is short of
money.
No Occasion for Alarm.
New England has sent millions %
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 have
decided to grant in the following man.
ner: / will deposit SlO,OOO,OOO In exist
ing depositaries in the cities designated
below. TO be secured by bonds accept
able for savings bank investments ur-
der the laws Of New York and AlassG-
chusetts taken at 80 per cent Of tneiT
value; these deposits to be returned
one-half on the 20th of January and the
remainder on the LIST of February.
Will Buy Bonds.
Il will also buy s1O,OO0,OO0 Of the
bonds of 1907 at the following prices:
Registered bonds. eX-interest. a 1O1
and coupon bonds at 1O2. In the event
that the bonds purchased are now held
as security for government deposits
security of the character also indicated
VIII be accepted in lieu thereof. Not
more than 81 600, 900 worth. however
VIII be purchased from any single IN
Stitution under these conditions.
Deposits will be made as follows;
New York and New Orleans. S1.590 0Bt
each: Boston, Philadelphia, Baltimore
Chica go and st. Louis, 81 ,000.0 GOD each
Cincinnati. Louisville, Atlanta and
Memphis S500,00O