New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-09

amount of circulation authorized y
law. This step on the part Of the Sec
rotary is in line with the precedent G
tablished during the panic of 1901
when the then Secretary Of the Treas
ury permitted the substitution Of bond
other than bonds of the United Sta'e
| in depositary accounts on condition
that the released government bonds b
Immediately used to take out additional
| circulation.
The Secretary has attempted furthe
to relieve the reserve situation by CIV
ing a liberal construction TO Section l.
of the emergency currency act, Whicl
provides that no reserve be required u
be carried against United States DC
posts. Hitherto banks for the mos
part have been carrying reserve agains
postal and other funds which th'
Treasury has not been accustomed Il
carry on It's books as moneys or lh'
United States. The Secretary's ne"
order in this respect will relieve banks
Of the necessity or hoIulHS ieSei "
against such accounts.
It is obviously the intention of the
Treasury authorities by the activities
Of the last month to prepare for any
close money situation which may arise
from business demands, or because oil
changes in the fiscal policy of the gov
Of DIt ting INTO Of
feet the new tariff, now in considera
ton in the Senate, which is expected 10
become a law in the course Of the next
few weeks. The methods employed by
the Secretary are familiar ones, but
ordinarily they have been used in con-
junction with actual and manifest con-
ditions recurring relief. II remains "a
be seen. therefore, whether by a dis
tribution OF public funds at this time a
stringency in the money market may
he avoided in the autumn during the
crop moving period. After a dlstribu-
ton Of the 100000 set aside by the
Treasury for the purpose Of increasing
depositary balances the Treasury will
still have on hand some S3OpoO,OOO OF
$40, 100000 available for further dis
tribution in case Of necessity. The
present crop outlook gives indication
that banks throughout the country will
be called upon to finance a large move
ment. and it would seem 10 be prudent
therefore, that the Treasury hold IN
hand sufficient funds TO carry the coun-
try through the usual seasonal demand
An additional reason for outstanding
Treasury resources is TO be found in
the fact that customs receipts are now
showing a considerable decline in an
ticipation of the lower rates under the
new tariff. This gives rise TO the
thought that after the new rates be
come effective there may be a consider
able influx Of importations TO be
financed at a time when the crops are
moving and which may cause an add
tional demand for money.
The tone Of the foreign security mar
kets during the week was marked by
irregularity, with a balance leanlnR
toward the side Of weakness. Euro
pean investors seemed 70 be apprehen.
sive Of the aggregate Of new issue:
coming out. and the firm demand fpi
money with a hardening Of rates thai
prevailed throughout Europe Inste &C
Of the Balkan troubles passing, as haC
been indicated by the reported signinl
Of a peace treaty among the allies
news was received Of a fresh quarre
between the Serbs and Bulgarians over
a division OF territory. This means
further deferring the time when tht
sword and gun will be laid down e
take up agricultural pursuits, and thu
minds OF the leading men OF all the
countries involved in the Balkan dis
pute will be turned toward building uI
reserves instead OF destroying them
Further, the boarded hundreds Of mill
ions Of dollars in gold in Contnenta
Europe will not only remain out d
use, but will be augmented by further
accumulations among the masses.
As THE London Statist" views th'
whole situation, nobody who under
stands the present condition OF tn
world seriously doubts that peace has
been maintained so far. not by diplo
macy, but. first. by the wise refusa
OF investors TO lend freely TO power.
who, ii was feared. would immediately
use the money for war purposes; and
second, by the unreadiness Of Russia
Her government is trying to win bach
the loyalty Of the peasantry. 1t is re
constructing its navy; and II is reform
ing its army. Therefore. II very wisely
has decided that IL would be suicidd
of 1t TO rush now into war, all the more
particularly because IL will be mucf
better prepared in ten years time, anc
years. Russia, therefore, can affOrC
to chuckle while Austria-Hungary anC
Italy natter themselves that they ar,
forcing the pace and securing the real
ization by and by Of their at present
bafled aspirations. In addition, Rus
STA knows that the Balkan allies vii
be considerably stronger in ten years
time and very much stronger still II
twenty years, while she has reasonabl
grounds for believing that she can
when she pleases. make difficulties