The Washington herald., 1907-08-24

New York, Aug. 2-secretary Cortelyou
announced to-day a radical change in the
Treasury Departments policy for reliev-
ing the commercial money market in
periods Of stringency.
Here is the secretary's statement. given
out at his summer home in Huntington.
LII;
Mr. cortelyou announced to-day that.
beginning with next week. the Treasury
Department viii make each week. for
period Of not less than five weeks. de-
pOsits in national banks at New York.
Boston and other points. the security re-
quired to be approved State. municipal.
or railroad bonds, acceptable under the
existing requirements Of the department,
with the understanding that If called for.
such deposits shall be returned after Jan
uary l next in installments to be fixed by
the Secretary OF the Treasury.
Why Action IL Taken.
This action is taken 10 meet the COM
mercial and industrial needs OF the ooun-
try at this season. and Is believed 10 be
preferable TO waiting until a time Of acute
stringency. when the only alternative
would be q large general deposit The
latter policy the Secretary desired 10 su-
peTsede by one which shall have as tts
ultimate object The adjustment operations
of the Treasury Department, as rapidly
as may be practicable under existing
laws, in such a manner as shall preclude
their being IN any sense disturbing fac
Tor IN the business world"
Mr.. Cortelyou did not intimate the
total amount that he stood ready to de-
pOsit IN the banks in the next I'VE weeks
OF more, but it Is understood that he viii
do everything possible TO meet the
stringency of the crop-mOving season.
He will use the current customs receipts,
and If necessary viii supplement thes4
by money from the Treasury balauces
Il has been estimated recently that he
could deposit Sf0.oo0.o0O in the banks With
out disturbing his working balance.
/ The Secretary, as indicated in the state
ment. win not cOnfine his assistance 10
/ the large money centers of the East, as
/ has usually been the case when the
Treasury Department has come TO the as
! sistance Of the money market. II is
/ understood that Mr. Cortelvou has Or
/ ganized in the Treasury Department q
/ bureau which is TO keep him informed
/ accurately on the money market con-
ditiOns in the different parts Of the coun-
/ try.
Hopes to Defeat English Bankers.
One Of the features about Mr.. Cortel-
you's new plan for relief is that specu-
lators viii have no way Of knowing ex-
actly how much money can be depended
upon from Treasury sources Il is IN
derstood that the Secretary hopes also
/ by making weekly deposits to avoid the
exporting OF gold by European bankers.
English bankers for the past week have
been making overtures for shipments.
The exchange rate fell of somewhat
to-day and the day before. but never
theless. bankers have been anticipating
that shipments would follow any big
/ lump deposit on the part of the Treasury
Department. Mr.. Cortelyou, it is under
stood, hopes that by making the deposits
week by week the money viii be ab-
sorbed.
The ne~- policy VIII bring great de-
crease in the moneys received by the
subtreasury in this city. and its business
with the banks win be largely diminished
Mr.. Cortelyou's decision 70 put his plan
/ into effect next week was undoubtedly
brought about by the occurrences in COM
mercial circles in the last week or ten
DAYS.