The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-06
SRAW AIDS GOLD IMPORTS.
TRE4STRY CONES TO THE RELIEF
OF THE MONEY MARKET.

The Secretary ReviVes HIs order o. Last
sprins Regarding the Accepting or
Deposits OF Securities Against Gold
1rhat 10 I'm transit Gail Money at 40.
WASHINGTON. Sept. S.-secretary Shaw
to-day yielded to the exigenoiss Of the
money market and announced late this
afternoon that he would on September 10
resume bis policy Of making deposits In ma
tional banks to encourage gold importatiOns.
IL had been apparent that the Secretary
was considering some such action, but he
kept his counsel until Just before the Treas
ury Department closed to-day, when he
issued this statement:
AT the close Of business to-day Secretary
Shaw announced that on and after Monday,
September 10, and until further notice,
the Treasury will make deposits in national
banks to facilitate the importation Of gold.
Bonds available by statute for investments
by savings banks in Massachusetts, and
New York will be accepted at 70 per cent.
as security pending the arrival Of the gold.
The actual engagement Of the gold must
precede the deposit, and the deposit must
be paid as soon as the gold arrives
More than 81, 600 900 will be available at
once to help relieve the money market
stringency through the engagement yester-
day Of gold imports TO the amount OF
H4Os, 600 at the Bank Of England to be shipped
to this country. 1t was reported that the
National City Bank had taken the entire
amount.
Call money went up TO 20 per cent. twice
yesterday and Wall Street awaited with
interest any move that Secretary Shaw
might make to help out the situation. 1t
was agreed generally that the stringency
was due to other than purely speculative
reasons and that the increase in the Govern
ment holdings was largely responsible.
The market opened with call money at
from Is to 20 per cent. and then the rate
advanced by five point leaps until 40 was
touched.
This had the effect Of bringing out money
from various sources, q large part Of which
was owned by those seeking just such
opportunities. Out Of town banks and
local sources Of supply sent in money
rapidly to get the benefit Of the high prices.
It was said that one bank sent in several
millions Of dollars, but only one million
was taken at 10. The rate quickly dropped
TO Is per cent. and remained there for nearly
half an hour before he closing Of the
market. A few minutes before the close
the price went back to 10. but II was said
that few loans were made then.
The reason for the second advance was
the belief that the money mt in earlier
vas withdrawn to some extent from GER
tain commercial chAnnela which would feel
. stringency In consequence.
Although the expenditures Of the Govern
msnt have been greater than tie receipts
in the last few weeks the Treasury has a
vast amount OF money which has been
drawn from business channels thro ugh
acoumulations OF many months. In addi-
ton within the last Eve days the Treasury
has increased its holdings nearly g. ass 900.
There was a gain yesterday in It's TRANSACT
tons with the banks OF 81 ,94S 900, one rea-
son for which was the shipment Of 81 GOO, 600
currency TO San Francisco. There was also
a heavy shipment to New Orleans. The
total net loss to the banks, and in favor OF
the Government, from Friday last was
Ass 900. as compared with a loss Of 81 ,0ts,-
600 for the same period last week.
Secretary Shaw came TO the relief OF the
money market last April by making deposits
Of Government funds in anticipation Of gold
importations, issuing practically the same
order that he made yesterday.