The Washington herald., 1906-10-24
ACCEPT SHAW'S PLAN
Wall Street Falls in Line
with Views of Bankers.
WILL INCREASE MONEY SUPPLY
Spectators Wanted Immediate Re-
lief, But Gradual Accretion Be
Iieved to Have Better Effect in Al
laying Fears London Might Have.
Few Special Features in Market.

Few Special Features I'm Market.
New York. Oct NATURALLY enough
there was some disappointment expressed
to-day by spectators for a rise in the
stock market of the more eager sort
over the plan Of relief of the money
situation announced last evening in this
city by the Secretary of the Treasury.
The plan. as stated. consists of per
mission accorded 10 the national banks
having public money on deposit TO sub
stitute to the amount of S1S00O, 90 for the
government bonds placed as collateral
security for these deposits high grade
securities Of other sort upon the prom
Use to take out new bank note circula-
ton based upon the bonds. for which
exchange was made.
Wall street operators of the kind de
scribed would, of course, have liked it
better IL the government had offered TO
place at once a large quantity of public
money IN the banks at the leading cen
tiers since such an action would almost
necessarily have been quickly reflected
IN decline in money rates; and yet
even these spectators before the day
was out in the financial district came
10 see, as banking interests and other
calm observers of the situation did at
the outset. that the Secretary of the
Treasury had. I'm fact adopted one of
the wisest methods OF putting money
into the banks that he could possibly
use
Will Increase supply Slowly.
The process of substitution of new col
lateral by the banks at the subtreasury
and the issue of note circulation will
manifestly take more than few hours
time. but it viii accomplish the great
result Of increasing the amount OF money
in the country without the withdrawal
Of one dollar from the governments cash
supplies, leaving these supplies intact
against the time when an emergency may
require them to be drawn upon. and it
Will not by causing an immediate fall
in money rates. bring about an I'M
pleasant strength in sterling exchange.
No doubt many of the smaller banks
throughout the country viii not think
1t worth while to take out new circu-
lation in the manner described. but with
time money at 6 per cent and a remunera-
tive money rate prevailing in Wall street
there can be very little question that
the large banks I'm the great cities. and
particularly at this center. will make
haste to avail themselves Of The Score /
tary's offer
1t was known indeed before the close /
Of business to-day that the great banks /
here would as soon as possible increase /
their note circulation in this way 10 the
extent OF several millions of dollars. and |
as in the case Of many of these iustitu- |
uons printed bank notes for their use /
have already been prepared the presump- /
lion Is that the new money will find its /
way over the bank counters in Wall
street in a few days time.
Moreover, the Secretary has acted wise
y IN Withdrawing tie special facilities I
from the import of gold granted by him /
some time ago in the shape Of advance 4
deposits OF government money in The
banks against gold import engagements. /
IL IS true that these imports have al |
ready ceased through the result Of
natural causes and that no one expects /
they will be resumed before the last Of /
the year.
Ailays Fears in London.
While the withdrawal of the official
privilege can do no harm. it serves 10 /
allay fears and anxieties about the mat
ter which it seems have been excited on /
the other side Of the Atlantic.
Partly as result OF selling of stocks
upon the hasty theory that the Secretary
of the Treasury's action would be with
out financial effect and partly by reason
OF natural reactiOnary tendency. fol-
lowing upon yesterdays violent advance
in values, the security market to-day dur
Ing the fOrepart OF the stock exchange
session declined rather sharply. Senti-
Inent, however, became much more en-
couraged as the day advanced. and the
laihng movement I'm prices was succeeded
by rising one, which gathered no little
Roadway over yesterdays close.
The general movement of the market
consisted only of these up and down
settings and there were few special
features IN II calling for comment. In the
morning hours on the stock exchange the /
selling OF the United States Steel com
mon shares attracted good deal of at
Jenuon. as did also rather particular
weakness in Pennsylvania stock.
The fall in Pennsylvania portended ac /
cording 10 the views of those hostile In
the market. that a good deal Of doubt
had arisen as TO whether the forthcom-
ing semi-annual dividend upon the stock
would be increased, as has been for some
time commonly hoped
Concerning the liquidation i'm the steel 1
shares, gossip was dumb The prevailing
belief was. however. that the selling al
both Of these stocks was due merely IN
the closing out of an account open for
the rise of one or two large speculative
interests.
London a Seller.
London sold on balance here about So
t90 shares of stock to-day this repre-
senting, it was thought. the wind rp Of
that liquidation in American securities
in London that has logically occurred
preceding the fortnightIy London Rnap-
clay settlements, beginning tomorrow.
Interest in this settlement centers
chiefly, Of course. in the charges that
VIII be made therein for carrying Kaffr :
mining stock in London. as to-day made
known was high. The inference was
mat the 'contango" Tate on Americans
IN London would also be al a conpara-
lively elevated figure Nevertheless #
Is Known that the speculative account ,
IN American stocks in London has been 5
very heavily CurtaiIed in the last week
and that the general financial position
mas thus been notably improved.
The foreign exchanges again moved in
favor of London. and the Bank of Eng
land made such high bid for gold of an
Kinds IN the open market IL London as
10 attract pTfnrfvur- Of Il {