Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-12-11
Secretary Of Treasury Shaw
Provides Long Promised
Financial Relief
SUM TO BE HELD BY BONDS
Action Taken After Long Consultation
With Bankers-say 'strinsency is
Only Temporary and is Caused by
Demand for Money in tho South
Planters Need Cash.

Washington, D. c., Dec. 11.--Secre-
tary Shaw had an interview with the
bankers committee now in session in
the city, and later In the day made the
following announcements:
/ 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 extraordinary high rates of inter-
est. have conferred, during the same
period, by letter or personally. with a
large number Of bankers scattered thru
the south and middle west, as well as
In the east. have today conferred
Bankers, Association, now in 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 l can get think the fol-
lowing describes the situation fairly
we'll:
Our blessings are the real cause Of
the actual stringency in money, rec
ognized everywhere. An unusually
large crop and unexampled industrial
activity have created an unprecedented
demand for money. The world is eve
erywhere prosperous and money Is in
great demand thruout Europe as well
as in the United States. We never had
such volume Of credits, and they are
on, ~
SETS"
The manufacturers Of cotton are
buying that staple by the train load.
The western cotton planter, unlike the
western farmer, demands actual cash,
and he carries 1t 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
actual money, as does the cotton
planter. This money should be re-
turned to the banks when the planter
settles with his merchant soon after
the first Of January, but between now
and then the cotton consuming coun-
try, as we'll as the cotton producing
country, is short Of money.
New England has sent millions to the
south and the manufacturers of cotton
thruout the south have exhausted the
capacity of local banks and are trying
to borrow elsewhere. There is no oc-
casion Cor alarm, but I believe there
is occasion for relief. This have de-
cided to grant in the following man
ner: I will deposit s10.000,OOO in exist
ing repositories in the cities designated
below, to be secured by bonds ac-
ceptable for saving bank investments
under the laws of New York and
Massachusetts, taken at 80 per cent Of
their value; these deposits to be re-
turned, one-half on Jan. 20, and the ce-
mainder on Feb. 1.
will also buy $10,000,000 Of the
bonds of 1907 at the following prices:
Registered bonds ex-interest at 101 and
coupon bonds at 102. In the event that
the bonds purchased are now held as
security for government deposits. Sc
curly of the character above ind;ca:e ga
will be accepted in lieu thereof. Not
more than $1,0O0,00O worth, however.
will be purchased from any single in
stitution under these conditions.
The deposits will be made as fol-
lows:
New York andd New Orleans, $780,
600 each.
Boston, Philadelphia, Baltimore, Chi
cago and st. Louis, 100000.
Cincinnati, Louisville, Atlanta, and
Memphis, 100000.