Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1907-08-27

Ing the incoming crop movement
4 period, mas impaired strong
tone today to the stock market,
prices In all leading issues open
Ing at l to 21a points higher
than yesterdays close.
New York, Aug. PA new plan OF
depositing government funds in New
York, Boston, Chicago, and other cit
les. to afford relief to the money mar
ket In the approaching crop MOVING
period, was announced today by Score
tary Cortelyou.
Commencing next week, Secretary
Cortelyou will place each week, al
such points in the country as he shall
designate, government funds to such
an amount as he deems sufficient to
prevent an acute monetary string
ency and possible panic when the de
mand for money is greatest at the
height of the crop moving period.
The plan of the Secretary for none
tary relief is new to the financial world
and one which he believes will prove
efhcacfous than the old method of the
treasury department in waiting until
the country was severely shaken flnan.
cially and then coming to the relief at
the last moment by packing large de.
post OF government funds in New
York banks. Secretary Cortelyou did
not state how much money he would
deposit each week. though he indicat.
ed that the amount would be large e.
nough to meet the situation.
official Statement Tells of Plan.
The plan for financial relief was
made known today in the following Of.
fetal statement:
Secretary Cortelyou announced to.
day that, beginning with next week,
the treasury department will make
each week for a period of not less than
five weeks deposits In national banks
at New York, Boston, and other points,
the security required to be approved
state. municipal, and railroad bonds
acceptable under the existing require
ments of the departments with the un,
derst ding that such deposits shall
be = >ed after January 1 next in In
stallnents. to be fixed by the secretary
of the treasury.
"This action Is taken to meet the
commercial and industrial needs of the
country at this season, and is believed
to be preferable to waiting until a
time of acute stringency, when the
only alternative would be large gen
eral deposit.
"The latter policy the secretary de
sires to supersede by one which shall
have as It's ultimate object the adjust
ment Of the operations of the Treas
ury Department as rapidly as may be
practicable under existing law, in sucf
manner as shall preclude there beins
in any sense disturbing factor in the
business world"
Secretary Cortelyou's plan is all hi:
own, and he consulted with on one re
garding it, He has made careful
study of the crop moving stringenc,
and after a mature consideration o
the question, he believes that the in
terests of the business world would b,
best conserved in the next few months
by the depositing of government funds
at various points throughout the coun
try each week, and in amounts larg'
enough to ease Tightening none,
market.
Funds Available for Use.
For this perpose he may use all Gus
tom funds which ne Is permitted t
under the Aldrich, and II tnese fund
are not sufficient he will argumen
them from the available treasury ba
ance, which increases each week afte
the usual July deficit.
Secretary Cortelyou believes that b
not announcing in advance the 6
mount to be deposited he will proven
spectators from taking advantage G
the situation and obtaining none
which ne believes should go into othe
channels. In adopting this plan tn
secretary gave careful considerable
to the question of gold export, and h
is of the opinion that the present me'
sure of relief will do much to proven
a movement of gold to Europe.
Notwithstanding heavy deman
for the $30,O0o,O00 Panama bonds
which are still issued, the Secretar
declines to place tnem on sale at TIL
time as the government does not nee
the money, and their purchase by tn
banks and public would tie up add
tional millions at time when til
money in most needed elsewhere.