New-York tribune., 1906-12-11
ORETREASURY RELIEF
SHAW RELEASES $50 900, 900.
VIII Deposit $1O,OOO,O0O in Banks
and Bug SO 900 900 Bonds.
From The Tribune Bureau. !

Washington Dec. 10-The Secretary Of the
Treasury announced to-day that with view to
relieving the great stringency in the money mar
ket, he would Immediately deposit S1OOOO,OOO
of the surplus now in the Treasury with govern
ment depostaries in the leading cities Of the
East, South and Middle West, taking as security
therefor securities acceptable for savings bank
investments under the laws of New York and
Massachusetts at 80 per cent Of their value. and
would also Immediately redeem S1OOoOO00 of
United States bonds Of 1907. the registered at
lO1 and the coupon at 1O2
Secretary Shaw is of the opinion that the pres
ent stringency is due only the great prosperity
of the country that it is incident to the present
crop moving season and will be abated soon
after January l.
Secretary Shaw had interview to-day with
the bankers committee, now in session in the
city, and later made the following announce
ment:
have received in the last ten days an u1-
usually large number Of letters from business
men representing all sections of the country
complaining Of the extraordinarily high rates OF
interest l have conferred. during the same
PERIOD by letter or personally. with a large
hunoer Of bankers scattered through the South
ana Middle West. as we'll as in the East. ! have
to-day conferred with the committee of the
American Bankers Association now in session
IN TINS city These men represent Chicago, St.
Louis, New Orleans, Atlanta, Pitrsburg, Indian
apols, Des Moines and other cities. From the
oest information Lean get think the following
describes the situation fairly well:
Our blessings are the real cause of the actual
str1ngency In money, recognized everywhere
An unusually large crop and uuexampled indus
trial activity have created an unprecedented de-
mand 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 buying
that staple by the trainload. The cotton planter
unlike the Western farmer, demands actual cash
and he carries it home In his pocket The West
ern farmer is paid in checks, which he deposits
IN the bank 70 his credit and therefore does NOT
absorb actual money, as does the cotton planter.
This money should be returned TO the banks
when the planter settles with his merchant soon
after January l, 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 10 the South
ara 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 have decided TO grant
IN the following manner:
I will deposit S1O0OOOO0 in existing deposi
taries in the cities designated below 70 be Sc
cured by bonds acceptable for savings bank in
Nestnents under the laws of New York and
Massachusetts. taken at 30 per cent of their
value: these deposits 10 be returned. one-haIf on
January % and the remainder on February l.
will also buy $lC.O000OO of the bonds of 1907
at the following prices: Registered bonds ex-
interest, al lO1. and coupon bonds at 1O2 In
eHe event tnat Ine ponds purchased are now held
as security FOR government deposits, security of
the character above Indicated will be accepted
in lieu thereof Not more than 81 900 900 worth
however, will he purchased from any single in
stitutiCn under these conditions.
The deposits will be made follows: New
York and New Orleans. S1jo0NOO each: Boston.
philadelphia. Baltimore. Chicago and St. Louis
SIWnWD each: Cincinnati. Louisville. Atlanta
and Memphis. 100000
The currency committee Of the American
Eankers' Association met to-day TO discuss plans
for urging Congress 10 pass bill providing for
a more elastic currency. The committee met in
Washington last month and outlined its plans
for this purpose. The members to-day con-
ferred with Chairman Fowler Of the House
Banking and Currency Committee. and with OH
cials OF the Treasury Department