The daily morning journal and courier., 1907-03-15
FURTHER GOVERNMENT
 RELIEF 10 SITUATION
ANNOUNCED BY SECRETARY OF TREASURY LATE TESTER
 DAY AFTERNOON

the Treasury-Of This Amount $30,-
 OOO,O0O Represents Public Deposits
 Temporarily Placed With the Banks
 Last Fall Under Agreement That
 They be Returned February 1, 1907--
 The Other $16,OOO,OOO and s25,OOO,OoO
 in Bonds Which the Secretary Yes-
 tcrday Offered to Redeem Makes q
 Grand Total of s71,OOO,OOO.
 Washington, March 14,-Secretary of the Treasury Cortelyou late this after noon made the following announce ment:
 "The secretary of the treasury has this day announced that any bank that increased Its circulation under the terms of the department announcement of Oc- tober 22 1906, and was required thereby to retire the same during the months of March and August, may retain said additional circulation upon due notifica- ton to the comptroller of the currency of it's desire so to do. without change as to security for public deposits until further notice. But those banks desir- ing to retire their additional circula- tion obtained in this way, will be re- quired to withdraw the state, municipal and railroad bonds now lodged with the treasurer of the United States as se- curity for public deposits and substi- ute the bonds released by reason of the retirement of their additional cir culation.
 "The amendment to section 5153 of the revised statutes by the act approved March 4, 1907 eliminated the words except receipts from customs and the secretary of the treasury is now in- structing collectors of customs, at places where it is found to be desirable, to deposit their receipts with national bank Repositories already established in same cities as the customs houses
 fTlle secretary of the treasury has al- so issued a circular announcing that he will redeem, with interest on July 1. the date of their maturity, any registered and coupon bonds of the per cent. funded loan of 1907, to an amount not exceeding $25, ,000, ,000 The bonds may be presented at once for redemption and registered bonds should be duly as- signed to the secretary of the treasury. IA copy of this circular will be mailed to each owner of registered bonds.
 "The circular of February il, 1907, providing for the purchase of these bonds at 1O1 1-2 flat, has been rescind- ed"
 Under these announcements and that which was made yesterday about $46,- 100000 will be allowed to remain in cir cllation that otherwise would have been called into the treasury. Of this amount $3O,00O,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 1, 1907, and S16.0OO0OO relates to additional circu- lation engaged for retirement. These amounts together with the $25O0O,OoO United States 4 per cent. bonds which the secretary to-day offered to redeem, make a total of $71OOOOO0 either left with the banks or offered to be placed with them as the result of the redemp- tion of the 4 per cent. bonds.
 The first paragraph of the first am nouncement relates to the offer made by Secretary Shaw last October to bring about some degree of elasticity in national bank note issues. He permit ted certain depository banks that had not yet availed themselves of the full circulation privileges, to substitute ap- proved state, municipal and, railroad bonds as security for public tunds lodged with them on condition that the United States bonds thus released be immediately pledged as security for ad- ditional circulation. Under this plan nationt; banks took out about Sl6,0OO,OO0 additional circulation, which they agreed to retire at the then authorized rate of $3,O0O,O0O month, beginning with March ard ending with August, 1907. Upon such retirement these banks were obliged to replace in their deposi- tory accounts the United States bonds which they have been permitted under the order to use against their circula- tion withdrawing from the treasury the state municipal and railroad bonds which they had been allowed to depos- if. finder the recent Aldrich act, how ever the limit of retirement was raised from s3OOO 900 to $9,OG0,0O0 per month and presumably owing to the high prices of government bonds in the market. engagements for the full retire ment during March have been made and S4 5OOOOO have been engaged for re- +irement during April and smaller amounts for succeeding months. It is belieyed at the treasury that this plan will keep in circulation the full $16,OOO,- 0OO 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, n accordance with the provisions of the Aldrich act, is intended largely as a convenience to the collectors of GUS toms at places where there are no sub treasuries. Therefore, the sub-treas- ury cities of New York, Boston, Phil- ade1phia. Baltimore, Chicago, St. Louis, Cincinnati, New Orleans and San Francisco will receive no direct bene- fit by the action taken to-day. Other large cities, including Buffalo, Cleve- land. syracuse. Rochester Pittsburg, Detroit, Plattsburg. Ogdensburg, AL bany. Troy, Savannah, Atlanta and