The Washington herald., 1907-03-15
Announces Three Measures
for Relief of Wall Street.
INADEQUATE, SAY FINANCIERS
Critics, However,
Declare Tint Governments Com
pIete Resources Have Been Turned
over to stock Brokers-Inereased
Circulation 10 Be Retained.

street slump as a serious matter, whlcA, II
not checked may affect materially the
general business interests OF the country
There was more than enc evidence of
this yesterday the most significant OF
which was the Issuance of q statement
by Secretary CortelyOu. intended TO re-
Heve the situation TO some extent The
statement announces:
First-That banks which increased their
circulation under the terms Of the de-
partment announcement of October p
1906, may retain such additional crcula-
tion under certain prescribed conditions.
Second-That collectors of customs, IN
pursuance of the change in the law made
by the so-caled Aldrich financial bill
passed in the closing days of the last Con
gress. are being instructed to deposit their
receipts in national banl, repositories at
places where It is found 10 be desirable.
Third-That the Secretary of the Treas
l. ury will redeem with interest 10 July l.
registered coupon bonds of the per cent
unded loan OF 1907, TO amount not 10
Aeed Ss50ol0C0. and that the offer 70
kase these bonds al 10ll5 fiat has been
ed.
,nciaI Circles Disappointed.
Il thought in financial circles that
tance thus provided viii be OF
sseht Indeed. there is reason
al the government officials
not expect that the actual
which the plan viii
IN circulation, will go very
Aioratng conditions, from
investors and specula-
ss the administration
rentIy that the moral
3uncement made yesIer-
the most potent factor
hing may result.
eCted by the slump OF
say they are greatly
use Secretary COrJctyOu
Ser in the premises dlsin-
ers think that the new
Treasury Department has
IN he could do under the
IS. 1t was only three days
le announcement was made,
bla authority that Mr.. Cor
ii not rush to the relief of
on the slightest prOvOcatiOn,
his predecessors have been
Ith doing. The situation being
is and Mr.. CortelyOu's brief
us new Office being considered,
yht that the announcement of
is about all that Wall street
mately expect at this time
OF the administration. indeed.
hat the President and Secretary
gu have turned the complete re-
of the government over TO Wall
They say that the plan, attrib-
10 the Secretary, Of getting the
svrv Department ''Out OF the mar
has been abandoned already. aud
"a the new Secretary has gone as far
toward the relief of the street as any OF
his predecessors.
- The Secretary issued his statement aft
or several conferences with President
Roosevelt who has been keeping In close
touch with the situation. The text of the
document follows:
The OHiciaI Announcement.
THE Secretary of the Treasury has this
day announced that any bank that in
ffrr Tat ne
of the department announcement Of Oc-
tOber o. 1876. and required thereby
10 retire the same during the months OF
March and August may retain said addi-
tional circulation upon due notification
10 the Comptroller of the Currency Of its
desire 10 do so, without change as to
security for public deposits until further
notice. But those banks desiring 10 re-
tire their additional circulation obtained
in this way viii be required 10 withdraw
the State. municipal, and railroad bonds
now lodged with the Treasurer of the
United States as security for public de
posts and substitute the bonds released
by reason of the retirement OF their ad-
ditoEal circulation.
THE amendment TO section 5l53 Of the
Revised Statutes by the act approved
March 4, 1907. eliminated the words 'ex-
cept receipts from customs" and the
Secretary of the Treasury is now in
structing collectors of customs, at places
- where il is found to be desirable TO de-
posit their receipts with national bank
repositories already established I'm same
cities the custom-hoUses.
The Secretary of the Treasury has also
issued circular announcing that he viii
redeem, with interest 20 July !. the date
OF their maturity, any registered and cou-
pom bonds of the per cent funded loan
of 1907 10 amount not exceeding 5000
900. The bonds may be presented at once
for redemption, and registered bonds
should be duly assigned to the Secretary
ssf TFrsn fra.g q #frf- rr-n mr.
viii be mailed TO each owner Of regis
tered bonds
THE circular of February II, 1907. pro-
Viding for the purchase of these bonds
at 1919 fiat has been rescinded.f
Amount of Increased Circulation
The increased circulation which the
banks will be allowed to retain under the
terms of the first paragraph of the state
ment amounts to about s1S000000 All of
this, under the old arrangement, would
have been retired during the present
month and August
Far moIe important than this is the an
nouncement concerning the deposit Of Gus
toms receipts IN the bank. The phrase
at places where it IS found to be desir-
able is not satisfactory to financial in
teTests, which have far found il impos-
sible 10 ascertain where such deposits viii
be permitted, and where they viii not be
permitted Definite Information is not Yet
forthcoming as to whether customs re-
cepts collected in ports at which there
are subtreasuries will be deposited in the
hanks or in the subtreasuries. This is an
immensely important point, inasmuch as
S-51,Go.Gl0 of the total amount of S300O00-
e0 collected for customs last year came
from ports which have subtreasuries
Thus IL viii he seen that II. in such ports
the collections are deposited in the sub
treasures instead of in the banks the car
rying out of the Aldrich act will have prac-
tcauy 40 effect in the way Of addihg TO
the amount of money in circulation, It
officially stated at the Treasury De
partment yesterday evening that so TAR no
decision had been made as to whether the
subtreasuries or the national bank de-
positores are to get the customs collec-
tions in cities where subtreasurfes are es- ;
tabliShed
Approximately two-thlrds OF the Gus
toms receipts OF the whole country are
collected ut the one port Of New York
II the collections there arc deposited i'm
the New York subtreasury. as in the