The Montgomery advertiser., 1907-03-15


 tfonai bank depositaries already estab- iished in the same cities as the GUS tom houses.
 The secretary of the treasury has also issued circular announcing that he will redeem with interest to July l, the date of their maturity, any regis tered and coupon bonds of the four per cent funded loan of 1907, to an amount not exceeding $25,0o0.o0o. The bonds may be presented at once for redemp- tion and registered bonds should be duly assigned to the secretary of the treasury. A copy of this circular will be mailed to each owner of registered bonds The circular of February II, 1907. providing for the purchase or these bonds at 101 1-2 flat has been re- scinded."
 Under these announcements and that which was made yesterday, about $46,- 0OO,0O will be allowed to remain In circulation that otherwise would have been called into the treasury. Of this amount S30000, ,000 represents public deposits temporarily placed with the banks last fall under agreement that they should be returned to the treas ury subsequent to February. 1907. and $l6, 5000, ,000 relates to additional circu- lation engaged for retirement. These amounts, together with the $25,000,000 United States four per cent. bonds, which the secretary today offered to redeem make a total of $I1 100000 ef- ther left with the banks or offered to be placed with them as a result of the redemption of the four per cent. bonds.
 The first paragraph of the above an- nouncement relates to the offer made by Secretary Shaw last October to bring about some degree of elasticity in na- tional bank notes He permitted cer- tain depositary banks that had not yet availed themselves of the full circula- tion privilege, to substitute certain ap- proved State, municipal and railroad bonds as security for public funds lodg- ed with them on conditions that the United States bond sas released be im- mediately pledged as security for ad- ditional circulation. Under this plar national banks took out about $16,00c- 900 additional circulation, which they agreed to retire at the then authorized rate of $3,000,000 a month beginning with March and ending with August 1907.
 Upon such retirement these banks were obliged to replace in their de- pository accounts the United States bonds which they had been permitted under the order to use against their circulation with the treasury, the state, E1uulClpAl 1Hu TAllIpAu DOHub WnACh they had been allowed to deposit Un- der the recent Aldrich act. however, the limit of retirement was raised from $3,000, 900 to $9,000,000 per month and presumably owing to the high prices of government bonds in the market en- agreements for the full retirement dur ing March have been made and $4,500,- 900 have been engaged for retirement during April and smaller amounts for succeeding months.
 It is believed at the treasury that this plan will keep in circulation the full $16,000,000, originally engaged for retirement, although the privilege has been given the banks to retire their circulation if they so desire.
 The deposit of customs receipts, in accordance with the provisions of the Aldrich act, Is intended largely as a convenience to the collectors of cus- toms at places where there are no sub -treasuries. Therefore the sub- treasury cities of New York, Boston, Philadelphia. Baltimore, Chicago, St. Louis, Cincinnati, New Orleans and San Francisco will receive no direct bene- fit by the action taken today. Other large cities, including Buffalo, Cleve- land, Pittsburg, Detroit, Savannah. Att lanta and approximately a hundred others will be directly benefited.
 It Is expected that banks In the cit- fes named which are already deposit taries for government funds will now receive the customs collections in the same manner that internal revenue and miscellaneous receipts have hitherto been deposited with them.
 The advantages. however, that will accrue in consequence of this authori- zatlon will be comparatively small in view of the fact that the receipts from customs In 1908 in aal cities of the United States outside of New York