The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-01
LIMIT OFT TREASURY GOLD.
RANKs nan BgRReHED PIsr ~
HEFORg AVN0t NCENFNT
~ Ilmss Gaessvabte VET M 'he fime .
Haah ttay nave tire sssld is'eTsse wee
-TWs t9aats nave ost . gaf ~ -
Datsa Esehsaae tfsehft NlefsaaNa

W VtutFf NuAFFVNute W. w We Uu4o "
HAaa tlay Rase tbe sssla la,sTsse Vvse
i've plaahs nave 0st - gaf ~ -
Dsss- Esehsaae tfseHft ssfsaaea
vhaa secrs,ary NJ the Treasury shaS
~saaouac~d ~ April ~ that ne had deposiied
tl1O on ,nps fran ths aih- Treasury In na-
iional banks whici he aareed to import
aaid ~ that amount, hs put t4a ON mn ~
the total Afnounf ehich could be taken
bv banks nnder this plan That he had
nade such . limit No Nd aoi make known
~ the Tina, but y waa announced yessey.
day that he had removed tbe limit Hencs-
forth, according 10 h announcement,
tharn 10 q . limit IN Tho amount national
banks csn wthdras hv derositina savinae
hank collateral In tho sub rpaenfv and
announcing IN Intention 10 import gold N
The amount ~ tho withdfa~al
The extension M the secretAry's rlan
vas considered important. not only be-
oa'i~ N esrved ~ facilitate gold imports,
but becausa n tended ~ es,ablish tho nev
way n things aa q settled policy In the
beginning. tho Secretary said. HE action
was an expndient 10 be rcsorted n In times
of financial strinRency, II vae . prece-
deht, bat not a policy and would hs fol-
lovsd only when In the judgment ~ the
Secretary conditions warranted. Now. Wall
street bankers believed Yesterday, the order
IL applicable a. any time.
Though The secretary has raised the
limit Of the Mbney banks may secure under
the conditions Of his order. ne has not put
a limit on the time the banks may keep
the money. The purpose Of the order.
az stated on April II, was To save banks
interest on importations Of gold while
the gold was In transit. II was pointed
out BY bankers who objected to the order
that Mr.. Shaw's delivery Of Government
money might permit banks 10 keep IL for
q much longer time than that act ually
consumed in transportation. since the
banks get the money when they simply
express al intention TO import gold and
not after they make the formal enga &C.
ment. II would be much better, these
bankers suggested. as establishing me
foreign .zchange rates az with oanks
could proftably import gold. II the secretary
we're 70 fix "A definite time for which the
banks could keep the Governments money.
The critics instance the workings OF the
order az TO the first weeks borrowings az
follows:
National City Bank took o.. 900, 900 April IL.
replaced IL April 20 ~ days., National City
Bank took s.. 900, 600 April "a. replaced si,5oo,-
INV hDA " - = 'eF '
az days. Still has 81, 100000
Hanover National took 81. 200. 400 April IS.
replaced 81 900. 900 April IS u3 days. Still
has 81, ooo, on,
National Bank Of Commerce took sl,ioo.o 900
April Il, replaced IL Apri. IS IS days..
Accordingly, while the National Bank OF
Commerce had the free use Of Government
money but eight days the City Bank had the
Use of SIS, 600 900 for fourteen days. 81 500 900
for fourteen days 81 900 .0o0for seventeen days
and still has the use Of 81 500 900 secured,
eighteen DAYS ago, and the Hanover Ma
tional had the use of 81 400 900 for thirteen
days and still has 81 900 900 secured eighteen
days ago. ..
gold import point said a foreign banker
yesterday. appears to be equivalent 10 cal.
culating how long the Secretary VIII PENNY
banks to keep the Government money II
they can keep 1t long enough they can IN,
the rates for bills Of exchange or the
premium on bar gold. Formerly we used
TO figure ten days az a very liberal allowance
for the loss Of interest on gold in transit.
The ten day period apparently ou's very
Assistant Treasurer Fish said yesterday
that the Secretary depended on banks using
all reasonable expedition In bringing over
the gold. In case they took Undue liberties,
he said, be should report j. at washington
LII was eNpldlltu dlso 'ho' eDi" W Wv
money replaced was not credited as re-
placed at the Sub-Treasury. for the reason
that it took the employees a day to count
Il. The force has been working overtime
since the heavy money movements began
and has been unable in some cases TO get
the gold counted on the day il is received.
Yesterday there was a total of 50 1000 o
withdrawn from the Sub-Treasury on &C.
count Of gold imports, the City Eank taking
a. .ooo, 900, the First National, 81 ,0oo, 600 for
Lazard Freres and the bank Of Commerce,
1900 600 for the Guaranty Trust Company,
The total withdrawn for the same, purpose
passed the s25 ,o00, 900 limit set by, the Score;
tary before il was announced hat he had
removed the limit, and is now $32, $40, eco,
Transfers to San Francisco by the sub.
Treasury yesterday were IS, 42o, 900, making
a total Of s22 ,e45 900 sent in this way to hat
city since the earthquake.