The Mena weekly star., 1907-08-29
CORIaYOUS N[N PLAN.
Secretary of Treasury Will Deposit Government Funds in Cities
 Where Most Needed.
TO AID MOVEMENT OF couMTRY's cR0Pl
Each Week for Five Weeks the Money Will be Deposited Where the Stringency is Most Acute--The Plan is New to Financial World. An Official Statement.


 New York. Aug. 25.-Secretary Of the Treasury Cortelyou announced Friday new plan of depositing gov. ernment funds in New York, Boston and other cities to afford relief to the money market in approaching crop movement period. Secretary Cor telyou will commence next week, place each week at such points in the country as he shall designate, govern. ment funds to such an amouns as he deems sufficient to prevent an acute monetary stringency and possible pan ic when the demand for money is greatest at the height of the crop nov ing period.
 The plan of the secretary TOT none tary relief Is new to the financial world and one that he believes will prove more efficacious than the old method of treasury department in wait ing until the country was severely shaken financially and then coming tc the relief at the last moment by plac ing large deposit of government funds in New York banks. Secretar, Cortelyou did not state how much morey he would deposit each week though he indicates that the amount would equal the situation
 The plan for financial relief was made known Friday in the following official statement to the Associater Press:
 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 nationa banks at New York, Boston and oth CT points. the security required ts be approved state, municipal and rail road bonds acceptable under the ex isting requirments Of the department with the understanding that if called for. such deposits shall be returned after January 1 in installments to be fixed by the secretary of the treas ury. This action is taken to meet the commercial and industrial needs of the country at this season, and is believed to be preferable to wait ing until a time of acute stringency when the only alternative would be large general deposit
 Investigation of the results attain cd under the old treasury plan of wait ing until the last moment and ther placing large single amount of gov ernment funds in New York. disclosed to Secretary Cortelyou that. as rule the placing of large amo ii- oil money. while 1t really helped, was generally ill.timed and either came too soon or too late.
 Under the new plan the secretary will place government funds ir amounts large enough to meet tho situation. For this purpose he may use all custom funds, which he is per mitted to do under the AlGrich act | and if these funds are not sufficient | he will augment them from the avail | able treasury balance, which increases | each week after the usual July de | felt
 Washington, Aug. William R k Ridg e.. comptroller of the currency { Saturday discussed in detail the plan which Secretary Cortelyou has for to relieve possible money stringency this fall through the dis tribution of funds among nationa banks He gives several reasons for the plan as wise and time ly and says he can see no reason why the demand for liquidation should become so general as to pro iuce anything like panic or a com mercial crisis. In fact. he takes g most optimistic view of the situation that the resources of the never at any time were SC 'eadily available for progress ani de lolopmept as they are at present