Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-08-24
AID 70 CROP MOVING.
Secretary Cortelyou Adopts
New Plan to Ease Present
Financial Pinch
TO MAKE DEPOSITS EACH WEEK
Method Believed to Be More Effieacious
Than Last Minute Relief-Method is
secretary's own-WiIl Depend on
New Bureau for Suggestive Infor-
nation.

nation.
New York, Aug. 24.-To afford re-
lief to the money market for the crop
moving period, Secretary OF the Treas
ury cortelyou today announced a new
plan Of depositing government FUNDS
in the leading cities of the country
The new plan is to deposit eaon "eeh
and is effective next week.
Secretary Cortelyou believes his plan
will nroye more efficacous than the
old method when the treasury walteo
until the country was severely shaken
financially and then acted at the last
moment by placing large deposit III
New York banks. The amount OF de-
nosits may not be made public, altho
they will be adequate to put a check
on gold exports
The plan was made known In the
following official statement:
Secretary Cortelyou announced 10
day that beginning with next Week
the treasury department Will MAKE
each week for a period of not less imam
five weeks deposits in national pailhs
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 department with the uh-
derstanding that if called for such de-
posts shall be returned after January
in installments 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 pe-
lieved to be preferable to waiting untli
a time of acute strinSency, when the
only alternat tive would be large gen
eral deposit The latter policy the
secretary desires to supercede by one
which shall have as its ultimate OBJ
ject the adjustment Of the operations
of the treasury department as rapidly
as may be practicable under existing
laws, in such manner as shall pre-
clude their being in any sense dis
turbing factor in the business world. :
Secretary Cortelyou! developed the
plan after long study of the many
problems to be considered in the
adaptation of method so entirely diff
ferent from the one that had been fol-
lowed hitherto. The plan is one
which the secretary hopes will find
general favor in the financial and bus
mess world.
Method Is Secretary's Own.
Secretary Cortelyou's plan is all his
own. and he consulted with no one re-
garding it, He has made careful
study of the crop moving stringency,
and. after mature consideration Of
the question, he believed that the in
.terests of the business world would be
best conserved in the next few months
by the depositing of government funds
au various points thruout the country
each week and in amounts large
enough to ease a tightening money
market.
Investigation of the results attained
under the old treasury plan of waiting
until the last moment and then placing
a large single amount of government
funds in New York disclosed that, as
a rule, the placing of large amount
of money, while it really helped. was
generally ill-timed, and either came too
soon or too late.
Under the new plan the secretary will
place government funds in amounts
large enough to meet the situation For
this purpose he may use all custom
funds, which he is permitted to do I'M
der the Aldrich act, and, if these funds
are not sufficient, he will augment
them from the available treasury bal
ance, which increases each week after
the usual July deficit
Will Depend on Bureau.
Secretary Cortelyou will depend
much upon the bureau, recently estab-
lished in the treasury department. to
inform him where stringencies are be-
ing felt most. In this way the funds
Of the government will be deposited
where they will effect the greatest
benefit. Secretary Cortelyou believes
that BY not announcing in advance
the amounts to be deposited he will
prevent spectators from taking adj
vantage of the situation and obtaining
which he believes should go
into other channels.
In adopting this plan the secretary
gave careful consideration to the
question of gold exports, and he is Of
the opinion that the present measure
Of relief will do much to prevent a
of gold in Europe. In prev
ious years the sudden outpouring of
morley from the national treasury when
. crop moving stringency was abb
sorbing all available funds produced
a sharp relief and made a gold export
possible by the violence of
the reaction.
notwithstanding heavy demand
for the s30,o00,0O0 Panama bonds,
which are still unissued, the secretary
declines to place them on sale at this
time, as the government does not need
the money, and their purchase by the
banks and public would tie up addi-
tional millions at time when the
is most needed elsewhere.
Ror6a;ne in cifv prnnertv