The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-12-11
Announces Action to Relieve the
Monetary Stringency.
Will Buy Bonds and Deposit
$lO,OOO,OOO in Banks.
TOO MUCH PROSPERITY
He Finds to Be the Cause Of
Present Conditions.
Not Enough Money in Circula-
tiOn to DO the business.

Washington, Dec. 11.-Secretary Shaw
had interview with the bankers
committee now in session In the city,
and later in the day made the following
announcement:
Il have received in the last ten days
an unusually large number of letters
from business men representing all sec
ttons of the country complaining of tfs5
extraordinary high rates of interest.
have conferred during the same pesiod.
by letter or personally with a Largo
number Of bankers scattered through
the south and middle west as well as in
the east. I have conferred with the
committee Of the American Bankers
association now in session in this city.
THESE gentlemen represent Chicago, st.
Louis, New Orleans. Atlanta PittsburR
indianapolis, Des Moines and other cit
les. From the best information / can
get think the following describes the
situation fairly we'll:
our blessings are the real cause Of
the actual stringency in money, recog-
nized everywhere. An unusually large
crop and unexampled Industrial activi-
" nave created an unprecedented de-
n1and for money. The world is every
Wnere prosperous and money is in great
demand throughout Europe as we'll as
IN the United States. We never mad
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 trainload The
cotton planter, unlike the western farm
er, demands actual cash, and he carries
IT home in his pocket. The western
farmer is paid in checks, which he de-
posits 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
the planter settles with his merchant
soon after the first of January but be-
tween now and then the cotton con-
suming country, as well as the cotton
producing country is short of money.
Millions to the South.
New England has sent millions to
the south and the manufacturers of cot
ton 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 deeiGed to grant in the following
manner: viii deposit $10s00D, 900 in. ex-
istlng repositories in the cities desig-
mated below to be secured by bonds ac-
ceptable for savings bank investments
under the laws Of New York and Mas
sachusetts, taken at so per cent of their
value; these deposits to be returned.
one-half on the 2Gth of January and
the remainder on the 1st of February
4 Will also buy $10,00OO00 of the
DondS or 1917 at the following prices.
Registered bonds ex-interest al IOl and
coupon bonds al 102. In the event that
security for government deposits, secur-
ity of the character a above Indicated Will
be accepted in lieu thereof Not more
than 100000 worth. however. will be
purchased from any single institution
under these conditions
THE deposits will be made as fol-
lows; New York and New Orleans, 81
500 900 EACH Boston. Philadelphia. Bal
timore, Chicago, and st. Louis, 81 000.-
600 each; Cincinnati, Louisville, Atlanta
and Memphis, $500, ,00o."