New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-08-24
CORTELYOU AIDS
MONEY MARKET.
NEUy FINANCIAL RELIEF
Plan ANNOUNCED.
Viii Deposit Government Funds to
Tide OUer Crop MOU-
ing Period.

new plan of depositing government funds IN
New York. Boston and other cities to afford re-
lief to the money market in the approaching
crop moving period He will. beginning next
week. place each week, at such points in the
country as he shall designate. government funds
to such amount as he deems sufficient to- pre-
vent an acute monetary stringency and possible
panic when the demand for money fs greatest
at the height of the crop moving period
The plan of the Secretary for monetary relief
is new to the financial world and he believes
il Will prove eficacious than the old
method of the Treasury Department in waiting
until the country was severely shaken financially
and then coming to the relief at the last moment
| by placing large deposit Of government funds
in New York banks Secretary Cortelyou did
not say how much money he would deposit each
week though he indicated that the amount
would equal the situation.
| The plan for financial relief was made known
in the following official statement:
| Secretary Cortelyou announced to-day tnae
/ beginning with next week the Treasury Depart
| ment will make each week Tor a perlOd OF not
less than five weeks deposits in national banks
/ at New York Boston and other points. the Sc
CIIritv required to be approved state. municipal
/ Ing reoutrenentE of the department with the
understanding that il called for such deposits
/ shall be returned after January 1 next IN m
stalments 10 be fixed by the Secretary OF ths
I Treasury This action is taken TO meet the
/ commercial and industrial needs of the country
/ at this season. and is believed to be preferable
20 waiting until a time Of acute strlnsenCys
when the only alternative would De large
general deposit The latter policy the Secretary
[ desires to supersede by which shall have
/ as its ultimate object the adjustment OF th5
| operations of the Treasury Department. as rap
] 4IIv- he under
| in such manner as shall preclude there being
i'm any sense a disturbing factor in the business
world
ME. CORTELYOUs OWN PLAN
| Secretary Cortelyou developed the new plan
for the relief OF the money markets after u
long study of the many problems to be consid-
cred in the adoption of method entirely
| different from the one that has been followed
| hitherto The plan Is one which the Secretary
| hopes will find general favor IN the financial
| and business world The Secretary has kept
| close watch at his summer home in Hunting
ton Long Island on the developments in the
worlds money markets and he decided TO takS
| action at once to preclude. in 50 far as he Vas
able under the law. the possibility Of panic this
| coming fall when the West is drawing heavily
| upon the East for funds to move the crops
! His plan is all his own and he consulted with
| no one regarding it. He has made careful
| study of the crop moving strinsency. and after
| 2 mature consideration of the question he be-
Heved that the interests of the business world
| would best be conserved in the next few months
| BY the depositing OF governments funds at vari-
| GUS points throughout the country each week.
and in amounts large enough to ease tighten
ing money market Investigation of the re-
| suits attained under the old Treasury plan dis
| closed 10 Secretary CortelyOu that as a rule the
| placing of a large amount OF money. while. fs
really helped was generally III timed and either
came too too late
MAY USE ALL CUSTOM FUNDS
Under the new plan the Secretary will place
| government funds in amounts large enough tn
| meet the situation. For this purpose he may uss
| all custom funds which he is permitted 10 do
under the Aldrfch act. and If these funds are noe
! sufficient he will augment them from the avail
| able Treasury balance. which increases each
| week after the usual July deficit
| Secretary CorteIyOu. in placing the governnen1
| funds throughout the country, will depend much
upon the bureau recently established IN the
Treasury Department to inform him where
| strinsencies are being felt most In this way
| the funds of the government will be deposited
| where they will effect the greatest benent- Sec
retary CorteIyou believes that by not announcing
| :, advance the amounts to be deposited he Will
| prevent spectators from taking advantages or
| the situation and obtaining money which ne De-
/ leVeS should go into Other cndiAiiSaS- III S"~Re
| ing this plan the Secretary gave careful consid-
| Grafton to the question OF gold exports. and he
| is of the opinion that the present measure OF
| relief will do much to prevent a movement or
| gold TO Europe. In previous years the suddet
| Cutpoi,r of money from the National Treasury
! when A crop moving stringency was absorbing
| NIL available funds produced sharp relief and
| made a gold export movement possible Dy the
| very violence OF the reaction
The present financial situation has occupied
Secretary COrteIyous attention for some time.
and ne is doing what he can under the law 10
bring monetary relief. Notwithstanding heavy
demand for the $4,000, 600 Panama bonds. which
are still unissued the Secretary declines to place
+bern on sale at this time, the government
| does not need the money and their purchase by
! the hanks and the public would tie up additional
! millions AT a time when the money is most
| needed elsewhere. Secretary COrtelyOu hopes
| that his new plan will be received favorably
| throughout the country, for he believes that it
viii do much 70 alleviate the strain the eoun-
try's money market
Mr. Cortelyou will remain at his home In
| Huntington until after the hot weather. and he
has sent for his secretary 20 aid him in the rush
of work which he expects will develop from
now
The announcement of the Secretary's action
will come as a great relief 10 Wall Street. where,
despite the severe liquidation in the stock mar
/ ket the rates for time loans have been steadily
| hardening and are at the highest levels II
| the wear The outflow of funds the interior.
/ to meet the seasonal demand for crop moving
requirements. is already assuming large pro-