The Birmingham age-herald., 1906-12-11
SHAW GRANTS THE
 HOPED-FOR RELIEF sitSS1O,OOO,OOO in Banks
 North and South
NO OCCASION FOR ALARM
Our Blessings Are the Real Cause ot Actual Stringency-Unexampled Activities Create Greatest
 Need for Money.

Washington. December 1o-Secretary Shaw had an interview today with the bankers committee now in session in the city, and later in the day made the fol- lowing announcement:
 T have received in the last ten days an unusually large number of letters from business men representing all sections of the country complaining of the extra ordinary high rates of interest.
 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 in the east. l have today con ferred with the committee of American Bankers association now in session in the city. These gentlemen represent Chi cago, St Louis, New Orleans Atlanta. Pittsburg Indianapolis, Des Moines and other cities. From the best information l can get I think the following describes the situation fairly well:
 "Our blessings are the real cause of the actual stringency in money, recognized everywhere. An unusually large crop and unexampled industrial activity have cre- ated an unprecedented demand for money. The world is everywhere prosperous and money is in great demand throughout Europe as well as in the United States. We never had such a volume of credits and they are based on an unequalled volume of assets.
 "The manufacturers of cotton are buy ing that staple by the trainload. The cotton planter, unlike the western farmer demands actual cash, and he carries it home in his pocket. The western farmer is paid in checks. which he deposits in the bank to his credit and, therefore, does not absorb the actual money as does the cotton planter. This money should be re- turned to the banks when the planter set ties with his merchant soon after the first of January, but between now and then the cotton consuming 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 exhausted the capacity of local banks and are trying to borrow elsewhere There is no occasion for alarm, but 1 believe there is occasion for relief. This 1 have decided to grant in the following manner:
 q will deposit ten million dollars in existing depostaries in the cities desig- mated below, to be secured by bonds ac- ceptable for savings bank investments un- der the laws of New York and Massa- chusetts, taken at 90 per cent of their value; these deposits to be returned, one half on January 20 and the remainder on February 1.
 q will also buy ten millions of the bonds of 1907 at the following prices:
 Registered bonds ex-interest at 1Ol and coupon bonds at 102. In the event that the bonds purchased are now held as se- curity for government deposits security of the character above indicated will be accepted in lieu thereof. Not more than one million dollars worth, however, will be purchased from any single institution under these conditions.
 ''The deposits will be made IS follows: New York and New Orleans, $l,500,0O0 each; Boston. Philadelphia, Baltimore, Chicago and St. Louis $1 100000 each; Cin- cinnati, Louisville. Atlanta and Memphis, c5nO OO0