The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-03-15
.s7l,000,000 TO
RELIEVE PANIC.
Secretary Of the Treasury Viii
Also Place New York Custom
Receipts in Local Banks.
REDEEMs s25,ooo,ooo BONDS
Allows S46,ooo,ooo Of Call Money
to Remain in Circulation
for the Present.

WASHINGTON, March 14.-Secretary
of the Treasury Cortelyou to-day made
the following announcement:
The Secretary of the Treasury has
this day announced that any bank that
increased its circulation under the
terms OF the departments announce
ment of October 20, 1906, and was re-
quired thereby to retire the same dur
ing the months OF March and August,
may retain said additional circulation
upon due notification to the Comp
troller of the Currency Of its desire to
do SO, without change as to security
for public deposits until further notice.
But those banks desiring to retire their
additional circulation obtained in this
way Will be required to withdraw the
state, municipal and railroad bonds
now lodged with the Treasurer Of the
United States as security for public
deposits and substitute the bonds re-
leased by reason of he retirement OF
their additional circulation.
The amendment to section 5153 OF
the revised statutes by the act ap-
proved March 4. 1907. eliminated the
words "ecept receipts from customs"
and the Secretary of the Treasury IL
s..
at places where 1t Is found to be de-
sirable, to deposit with national bank
deposltaries already established In
some cities as the custom houses.
ihe Secretary of the Treasury has
also issued a circular announcing that
ne VIII redeem, with interest to July
lst, the date of their maturity. any
registered and coupon bonds OF the
per cent funded loan OF 1907 tn an
amount not exceeding s25,ooO,o00. The
ponds may be presented at once for
redemption, and registered bonds
should be duly assigned to the, secre-
tary 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 OF these
bonds at l0l 1-2 Nat, has been ro-
scinded,"
Under these announcements about
$46,oO0,O0o will be allowed to remain
IN circulation that otherwise would
nave been called into the treasury.
vi thls amount $30,000,000 represents
pubic deposits temporarily placed
with the banks last fall under arree-
ment that they should be returned IN
the treasury subsequent to Februnrv
l, 1907, and $4,000, 900 relates to addj.
tional circulation engaged for retire.
ment These amounts, together with
the s25,ooo,ooo United States A per
cent, bonds, which the secretary to- to-
day offered to redeem, make a total
OF s7l,o0o,0oo either left with the banks
or offered to be placed with them ns
the result Of the redemption of the 4
per cent. bonds. Y
Elasticity in Currency.
WASHINGTON, March 14.-The arst
paragraph of the above announcen,ent
relates to tho offer made by Secrata ~,
Shaw last October to bring about soma
degree OF elasticity IN national bank
note issues He permitted certain dc-
posltory banks that had not vet avaiIed
themselves of the full circulation nrivis
lege to substitute certain approved
state, municipal and railroad bonds n =
security for public funds lodged with
them ON condition that the United
states bonds thus released he imIne- I
diately pledged as security for adrli.
tional circulation Under this plan M I
tional banks took out about S10. 0.000.-
600 additional circulation, which they
aEreed TO retire at the then authorized
rate OF Ss000,000 a month, beginning
with March and ending with August
1907, Upon such retirement these banks
n Continued ON Third PcHe.l