| Show SECY SHAW ADMONISHES DEPOSITARIES Washington Sept 1111 7 Secy Shaw has h ha made public u a I circular letter leler dated dale today loa to 10 all al national bunk bank depositaries 1 in iii which he hI says maS in effect cret that he lie ex n expects nI I public moneys lone In depositary banks hanta I to 10 he I used uH in the c where It I Is I deposited and rend not loaned baited through brokers and an other agents In Ine New e ew York for speculative purposes The letter Iter Is as is a follows 1 I am advised adla that ninny banks scat scattered Ical scattered I tere throughout the thc country are arc ro loaning ImmIng their surplus funds lunds through brokers and Ald others In New X York on ott 01 call lal at high rates of Interest t Money Mona I one loaned on call all 1 is well nigh universally for speculative schemes heme I t recognIse the right of ot any Individual to 10 speculate speculate late In hi storks or in land and nn II the legal le 1 tight sight of any Iny bank ank to 10 0 loan money at appropriate rates mIl or of interest at itt home horne or abroad on omi 01 ample security even with wih knowledge 1 that Ihal it Is IA being beli I used u ed for speculative purposes I am ans not hot will willIng wi iv ill illing Ing II however that government money monc shall hAJI l lit he e enticed away awn from flOm the loial 1011 t where It has hu be been n deposited 11 lIed for forthe forth the th pui ose of being used uNI In it this way Public deposits are lire made adE In aid of legitimate business HM Kit distinguished From Irom speculation whatever Its 1111 nature Depositary eIt Ity II b banks are ate expected ex to 10 loan at ut regular gular n rates or not at all nil and they tb must not nol be tempted to 10 net lid aa Ill agents Instead of correspondents for tor other r depositary hank banks In making c call 1111 ll loans luns at high rates tilt If you OU ItU bate ha f more moore money than your our community can ran appropriately please return It to the treasury for lor It itan mn Nan an be placed where It will do sin much mUth good This Title dues not apply to 10 banks with Urge large reserves regularly tE on deposit deport with city ell correspondents CAUSES New t York Sept Secy Shaws Utter letter on ott the tM use Ut of public money for tor peul purposes cI created a great deal of surprise in banking circles in iii I thia tit vt where It was wan RII believed that a I good 1004 deal ulMI of the Ibe mosey me to be bt deposited by hy the government at Interior points would speedily be diverted dherIN to 10 this con ren renter ter tar Special Interest 1 was shown In is the order enjoining depositary lIepo bAnks hunks from lending handing government funds lunda Hi et high rates rales It WitS recognised by byNe It Ite Ne Neit e York ork hankers bankers that the treasury Itte uT department U Is In III a R t to 10 main maintain lain tain III In a I close clace watch sateh on Ik l the operations of ot the depositary beaks banks In this connection t Ion tion because I u f of ot the he report made by It them hew re lint lime a y yer Mr r to 10 th the comp comptroller I roller of the currency un |
