New-York tribune., 1906-04-15
TO AID GOLD IMPORTS.
SECRETARY SH4W,S Plan
1dranccs To Banks on .Sauings
Banks Collateral.

A novel eXpedient for facilitating the import
- gold has been approved and put into effect
-. the Secretary of the Treasury 1t is de-
scribed in the following statement. given out
., The Sub-Treasury yesterday morning by Sec
-eta~v shaw, who is in the city for two or three
days.
The price OF exchange having reached the
roirr where gold ought have been imported
and believing the reason why il was not en-
cage 70 be the Joss Of its use during transit
r. S1,b-TreaSury d Now York authorized
On Thursday afternoon 10 accept bonds avail
80 a. security To savings banks and 10 increase
he donost O. any national bank desiring 10
;r,rorr gold any amount not exceeding
- ,a.pa4p 10 any one bank. the same to be re-
.,.-,s5 Immediately on the arrival Of the gold
a. F-l5av the limit was removed authorizing
he acceptance Of security ana 10 increase the
derost to any amount when assured that the
-. would be Immediately used in the en-
earar-ert Of gold for shipment 10 the United
ste,ss Twelve million dollars has been thus
distributed
7t,s ssorsts-,- called atter;ion To the fact that
- ,bis way the banks VIII he able To import
,o,a without losing lis use during shipment.
rorrrer1v tie banks were permitted To count in
,pair reserve gold iu transit This rule has been
,,s,re5 and the new rule IS now adopted OF
e5,-arcinr the money ou proper security 10 be
returned immediately on The arrival OF the gold.
7-5s- tbis af~ause,uont l2.oo0O0o gold has
ALREADY been engaged for import, S5"o"o0 by
,be National cry Bank in the middle Of the
week and another S10oH0 yesterday. and
60 n1a Aaa h.- the Hanover National Bank. II
: r~ohsble that large additional eugaE aEements
mill within The -ex- few DAYS be made by
these institutions unless some radical ad-
vance should occur ia The foreign exchange rate
which rose 3. cent yesterday, and that ma
,isn7l hanks in one o. more interior cities may
aIs7 import the metal. The Secretary yester-
dsv was unwilling To say anything more con-
csrr;r.- his now device than was contained in
she formal statement. nut it IS understood that
H. considers il soun6er policy TO aid The hanks
in times Of severe money stringency TO draw
gold from Europe than 10 increase the amount
Of the public moneys placed with depository
institutions.
TIE accommodation offered ny the Secretary.
Of course. cannot be extended 10 trust companies
or rrivate banking houses which at the present
iuncture would no, be able To import the metal.
frt il is understood that the loauing Of govern
ynent funds 20 national banks I'm The manner pre-
scribed hy Secretary Shaw. and for the express
and sole purpose OF enabling gold 10 be brought
into the country, VIII b. allowed only at times
when. fu The Judgment Of The Secretary Of the
Treasury. money market conditions are so seri-
Gus as t. make il desirable in tie interests Of
general business that the United states Treas
ury should take measures Tor relieving the
situation Secretary Shaw has i'm the past put
in operation original plans for lessenirg money
market striuEeuCy. notably in the fall q 1907,
when he allowed The banks To deposit state and
The news f the Secretary action had a slim
ulatrg effect on The stock market. prices
throughout The list advancing. on the general
assumption that the period Of high money rates
was over. Al excellent bank statement in
creased the bullish sentiment. and the market
closed strong In spite of extensive proht taking