The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-03-15
AVERTING THE STORM.
Action Taken by Secretary cortelyou
in Several Directions.

~ SSNSi a.
Washington. March 14-Secretary Il
the Treasury Cortelyou today made the
following announcement:
The secretary of the treasury has I
this day announced that any bank that
Increased its circulation under the terms
OF the department announcement of Oct. :
.. 1906. and was required thereby to re-
tire the same during the months of March !
and August. may retain said additional
circulation upon due notification TO the
comptroller Of the currency of its de-
sire so to do. without change as to
security for public deposits until further
notice. But those banks desiring to re- ,
tire their additional circulation obtained
in this way will be required TO with
draw the state, municipal and railroad
bonds now lodged with the treasurer OF
the United Etates as security for public
deposits and substitute the bonds re-
leased by reason OF their additional cir
CulatiOn.
Deposits of Customs Receipts.
THE amendment to section 5l5s of the
revised statutes to the act approx ID
( March 4. 1901, eliminates the words 'eN-
cept receipts from customs and the sec
rotary of the treasury is now instructilg
collectors of customs at places where
it is found desirable to deposit their
receipts with national bank depositaries
already established in the same cities As
the custom houses.
The secretary Of the treasury has also
issued a circular announcing that he will
. Itut-tlis Will Interest 10 july 1 the cate
of their maturity. any registered and
coupon bonds of the 4 per cent funded
: loan Of 1897 to an amount not exceeding
/ S25G00,09- The bonds may be presented
at once for redemption. and registered
bonds should be duly assigned to the sec-
rotary of the treasury. A copy of this
circular will be mailed to each owner of
registered bonds.
THE circular Of Feb. II. 1907. providing
/ for the put chase of these bonds a 101iz
fiat has been rescinded.
Circulation Increased.
! Under this announcement and that
which was made yesterday. about $500
OQ0 will be allowed to remain in circula-
lion that otherwise would have been
called into the treasury. OF this amount
S30O0O,O00 represents public deposits tenn
porarily placed with the banks last fall
under agreement that they should he
returned to the treasury subsequent TO
/ Feb. J. 1907. and S16.O00.O10 represents adj
ditiOnal circulation engaged for retire
ment. These amounts. together with the
/ S25.O9o,000 United States per cent bonds
/ which the secretary today offered to re-
deem, make total of 81 eD0.00o either
/ left with the banks or offered 10 be
/ placed with them as the result Of the re-
/ demption of the 1 per cent bonds.
/ The first paragraph Of the announce
ment relates to the offer made by Sec
rotary Shaw last October to bring about
/ some degree of elasticity in national bank
note issues. He permitted certain de-
/ positary banks that had not yet availed
I themselves of the full circulation priyi-
/ lege to substitute certain approved state,
municipal and railroad bonds as security
] for public funds lodged with them. on
condition that the United States bonds
so released be Immediately pledged as
/ security for additional circulation. Under
this plan national banks took out about
$500 ,005 additional circulation. which
they agreed to retire at the then
thorized rate Of S3.O0.O00 a month, begin
ming with March and ending with August.
1 1907.
| Authorized by AIdrich Act.
Under the recent Aldrich act. however,
the limit Of retirement was raised from
100000 tc 100000 per month. and en-
/ gagemer is for the fun retirement during
March have been made and S4.Je0.0O0 has
! been engaged for retirement during April
! and smaller amounts for succeeding
/ months 1t is believed at the treasury
department that this plan will keep Ia
/ circulation the full s16OO0.O00 originally
/ engaged for retirement.
! The deposit of customs receipts, in ac-
! cordance with the Aldrich act is intend
! ed largely as convenience to the col
lectors Of customs at places where there
are no sub-treasuries. Therefore the SUBJ
treasury cities of New York. Boston.
Philadelphia. Baltimore. Chicago. s..
: Francisco viii receive 40 direct benefit
hundred other large cities will be directly
Z benefited. 1t is expected that banks
named which are already depositaries for
I government funds viii now receive the
Continued on Page 2.