The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-08-24
CORTELYOU TO AID MARKET
BT 4 NEW PLAN or DEPOSITS
FROM WEEK TO WEEK.
Retunabie After Jar 4 40 Required - Aims
at Permanent Policy Insuring Easy
Money the Year Refund Free From
Danger OF Gold Exports ana Speculation

Money the Year Round Free From
Danger OF Gold Exports ana Speculation
Secretary Cortelyou announced yesterday
a radical change in the Treasury Depart
ment's policy for relieving the commercial
money market in periods Of stringency.
Here is the Secretary's statement. given
cut at his summer home at Huntington, L. I.
Mr.. 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
M national banks at New York, Boston
and other points, the security required
to be approved State, municipal and rail-
,cad bonds, acceptable under the existing
lequirements OF the Department. with the
understanding that If called for such de-
posts shall be returned after January I
next in in stalments to be fixed by the Sec
rciLry Of the Treasury.
This action is taken to meet the COM
mercial and industrial needs of the country
at this season and is believed TO be prefer
= able to waiting until a time OF acute strin-
rency. when the only alternative would be
p large general deposit. The latter policy
tie Secretary desires to supersede by one
which shall have as it's ultimate object the
adjustment of the operations of the Treas
ury Department. as rapidly az may he
practicable under existing law, In such
manner as shall preclude their being in
any sense "A disturbing factor in the business
world"
Mr.. Cortelyou did not intimate the total
amount that he stood ready to deposit in
the banks in the next five weeks or more.
but il is understood that he will do every
hing possible to meet the ~stringenoy OF
The crop moving season. He will use the
current customs receipts and IL necessary
will supplement these by money from the
treasury balance. 1t was estimated re-
emily that he could deposit $40, 900 900 in
The banks without disturbing his working
lalance.
The Secretary, ss indicated in the state
ment. will not confine his assistance to the
large money centres Of the East. as has
usually been the case when the Treasury
Department has come to the assistance OF
he money market. II Ia understood that
Nh. Cortelyou has organized In the Treasury
Department a bureau which is TO keep him
informed accurately on the money market
rnnditions in the different parts OF the
country.
Relief furnished by Mr. Cortelyou's
predecessors TO the strin gency in the crop
moving and dividend paying periods has
heen in the nature Of large lump deposits.
MIR. Cortelyou has been formulating not a
temporary, but a permanent policy. While
he policy Of Secretary Shaw. for instance.
aimed at periodic elasticity Mr.. Cortelyou
desires. as far as commensurate with
abundant protection for the Governments
reserves, easy money for business use the
year around. That policy was indicated
when Mr.. Cortelyou came to the relief Of the
market after the silent panic In March by
depositing $40. 900. 900 OF customs receipts
IN New York banks. Prior to March 4.
The date ~ the Aldrich currency reform
law. deposits Of customs receipts in the
lanks were illegal.
Mr.. Shaw nulliied somewhat the force
e the old statute by making distinct funds
y the customs receipts and the revenue
from other sources and using the customs
receipts for Government expenditures,
holding the others in reserve and depositing
part of them as occasion demanded in
national banks throughout the country.
One Of the features about Mr.. Cortelyous
.cw plan for relief II that spectators will
have no way Of knowing exactly how much
money can be depended upon from Treasury
sources
II is understood that the Secretary hopes
also by making weekly deposits to avoid
the exporting Of gold to Europe. English
tankers for the past week have been max
ng overturcs for shipmsnts The exchange
!ate fell OF somewhat yesterday and the
day before, but nevertheless bankers had
been anticipating that shipments would
'ollow any big lump deposit on the part Of
the Treasury Department. Mr.. Cortelyou,
II is understood. hopes that by making the
deposits week by week the money will be
absorbed at home.
The new policy will bring about a great
decrease in the moneys received by the
Sub-Treasury in this city and it's business
with the banks will be largely diminished.
Secretary Cortelyou's decision to put
his plan into effect next week was I'M
doubtedly brought about by the occurrences
in commercial circles in the last week or
ten days The Pope Manufacturing Com
psny. f.. G.. Hazard a Co. and Curtiss.
Leggett 4 Co. Of Troy. all three well estab-
lished concerns. were forces into the hands
~ receivers by tight money conditions.
Offerings Of time money are extremely
limited and the rate has been steadily
"'N"Heiuk LoCriitiys 1ubIcthoy Autco
we're 0 per cont. for thirty days. ca to 6x
per cent. for ninety days, OF to- per cent.
for four to fix months. Some loans have
been made lately as high as s per cent.
for six months and = per cent. for sixty days.
The fact that high rates have continued
and none Of the interior banks sent on
money shows that they are well loaned
np all over the country.
The ~stringency Is further indicated by
the fact that one Wall Street bank loaned
5000 o TO two Western banks a day or two
ago. This circumstance is extraordinary,
~ Western institutions are usually heavy
lenders TO this market &C this season Of the
year The hrmness OF the foreign ex-
change market shows that there is little
chance Of gold imports. Last fall some
thing like $50, OOO,o 900 was imported.
:twaslcarned yesterday that there is still
outstanding $4,000. 900 OF the Government
r. Of 1901 They mstured on July 1. when
inc interest ceased. On the day OF re-
aemption there were $50, 600, 600 OF the
ponds outstanding. IL lie usual for some
holders to fail to present the bonds for re-
aernPtion. but il is said that there has not
been in years another instance Of 90 large
number holding out. Wall Street regards