The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-10-23
BANKERS DISAGREE
OYER SHAW'S DUTY
Several Plans Broached for Re
lief Of Financial Situation
Secretary Acts.

Journal Special Service.
+ New York, Oct. 2S.--Secretary Shaw,
after conferences with bankers about
the financial situation, declared that he
had heard SO many conflicting argu-
ments that he was not at all certain as
to what the fnanciers Of New. York
actually wish him to do. .
bankers told him that he ought to come
to the relief Of the money market by
retiring the per cents Of 1907, which
the National City bank has bought up
in enormous quantities for the purpose
Of selling them to the government at
a premium. =
A delegation of Union club bankers
told him that he would make a great
mistake if he retired these bonds at
relieve the money market. What was
needed, he was told, was period of
liquidation in the stock market which
| would puncture a few speculative bub-
bles down town and bring about
healthy condition in the loan accounts
of the New York banks.
London Act "a Bogie?
Mr.. Shaw was told that several New
York institutions were loaded up with
Reading at 145h and Tennessee Coal
& Iron at 1855, and the way to stop
! the gambling in them was to force
the bank to raise money by calling the
loans on them. p :.-t
The very fact that Secretary Shaw
was here had reassuring effect. The
| fact that he was on the scene and in
forming himself on conditions, gave
everybody confidence. ~
Wall street is beginning to see it
has been made the victim of a shrewd
set Of London spectators, and it does
not regard the Bank of England as
entirely above suspicion in the matter.
It does not believe that this dignifed
old institution was a party to any
that it's action of last Friday was taken
for the purpose Of, colloquially speaking,
"throwing a scare'' into American
spectators. H.. IT.
Secretary Shaw authorizes the an
nouncement that deposits to facilitate
gold importations will be discontinued.
He said in connection with the an.
nouncement that importations had ex:
ceeded his expectations and he believed
for the present America had quite its
share, and he had no disposition to
disturb conditions in Europe by q con-
tinuation of that method Of relief.
Secretary Shaw also announced that
he would stimulate national-bank cir.
culation to the extent Of $18,ooo,000 by
accepting approved securities other
than government bonds for deposits al
ready made, the bonds released to be
used Immediately as q basis of circu
lation without withdrawal from the
treasury. He does not object to the
assignment Of the bonds to other banks
than those now holding them, but to
insure their use they must remain in
the treasury, and in addition the bank
taking out the circulation must agree
to retire the same between March IL
and Aug. 10, 1907.
The banks will be required, when
taking out their circulation, to make
! application for its retirement, and the
order or percentage of retirement from
month to month will be determined by
the treasury department..
In this way $18,000000 of additional
circulation can be Immediately issued
and gradually retired during the spring
and summer months. In this way, also
Secretary Shaw expects to demonstrate
in limited form. the benefits Of an elias
tic currency.