Show UNCLE SAM TO RESCUE Thirty Million Dollars to Be Released at Once SHAW MAKES STATEMENT Banks Hereafter Will Not 3e R quired to Car a Reserve Against the Government Deposits So cured by Government Bonds Tho Treasury Department Will CoOperate Co-Operate So Far n Possible With tho Banks in Their Effort to Supply Necessary Credit to Do Business New York Sept 29 Secretary of the Treasury Shaw who was in New York tonight has Issued a statement in which he says that the banks here after will not be required to carry a reserve against government deposits der5ls secured by government bonds Tlila will make available tomorrow over SO 000000 Secretary Shaw declined to discuss the financial situation further than to say that the Treasury Department would cooperate as far as possible with the banks In their effort to supply sup-ply the necessary credit to do tho unprecedented un-precedented amount of business that la taxing railroads and steamship lines as well as banks to the utmost Mr Shaw saId he had never seen any good reason why banks holding a government gov-ernment deposit secured by government bonds should b required to carry a reserve re-serve against It First It is a deposit not likely to becalled In a m time oC stringency and second If called the collateral will always sell for cash In excess of the deposit He has since he took charge of the treasury contemplated con-templated relieving the banks of this burdenCOMPTROLLER COMPTROLLER AGREES The Comptroller of the Cur lcy agrees with the Secretary and thor fore It Is announced that hereafter banks will not be required to carry n reserve aga Inst government deposits secured by government bonds The treasury has on deposit with various banks scattered throughout the country from Maine to California and from Minnesota to New Orleans In round numbers 130000000 against which the banks have heretofore hron compelled to hold more than 530000000 of gold or Us equivalent This derision will release that much reserve and 50 000000 additional credit WILL ACCEPT OTHER SECURITIES The Secretary said he would continue to make deposits of Internal revenue and miscellaneous receipts all available avail-able for that purpose practically a half million per day as long as the situation situa-tion required and If the banks were unable to retain government bonds to secure the same he would accept the same general class of securities municipal muni-cipal bonds etc as are made available avail-able by the laws of the several States for savings banks By this it Is not Intended to loan In excess oC 65 percent per-cent of the par value and nothing will be accepted that has not been panic tried and proven salable for cash on call lie said he should of course determine de-termine each case by Itself The Secretary Sec-retary further said he would accept security oC the class described above for a portion of the deposit held by each bank now holding a government deposit and release enough 2 per cent consols to cover any Increased currency that the bank may desire to Issue HAS CURRENCY ALL READY He has recognlxed the possibility of present conditions and therefore as early as last July commenced printing currency preparatory to the needs of the banks to handle the increased business bus-iness of the fall trade and has on hand ready to be delivered an aggregate of about 25000000 This con bo sent out at the probable rate of 55000000 a day If I the banks desire to substitute the other security above designated for the release of the consols This step was conlcmplated when some months ago he asked tho banks holding Government Govern-ment deposits to order additional currency cur-rency printed The Secretarys additional addi-tional relief therefore may he summed up ns follows RELIEF SUMMED UP First the release of practically 30 I 000000 of reserve which will permit the banks to Increase their volume of business busi-ness 130000000 Second the substitution of other securities se-curities for consols now held by the Government on condition that the same shall be used as a basis for Increased In-creased circulation which If accepted by the banks will immediately Increase In-crease the volume 20000000 or 23000 000 and will add thereto If needed Third the continuation deposits to the limit allowed by law accepting If necessary > security other than Government Govern-ment bonds Secretary Shaw will remain In NW York tomorrow and expects to visit the financial district |