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Show NO CURRENCY FAMINE Secretary Shaw Sees No Occasion for Alarm. STATEMENT FROM TREASURY Arrangements lltvo Been Mndo to Releiso About Tour Millions of Treasury Holding New York tho Only rinre Where Theie Is it Scarcity Scar-city of Money, und liven Theio tho Rate Is Not High far Commercial Taper, nnd fot Commeiclnl Paper Sccietniy His llladicst Solicitude, Washington, Pepl. 11 Ruretsiy Shaw tolas Issued the follow Ing statement state-ment Hecretnrs Hhaw has nmde nirange-ments nirange-ments In rehxise about tlwKiiXK) of the treasury holdings Ho has had n list prepaid of those nntlonal banks throughout the lounlry vvhlth held fire oi pledged bunds nt the date of thilr last reisirt und has mule Inquiry for others After making iillnwnnie for changed lonillllons slnie last report be expetls thlHWIll u lease nt lenst J I noil -000. He his Kiut n. illi e to nil suih that It the) will stud Iheso bonds to tho Trcnsurei of Ihe Pulled mutes In sums of &0 000 or tuoie the) will be designated desig-nated us lempornrs ileposltarli s und the faro value of the lion Is will bi do-tnslted do-tnslted wllh 111. ill I" Ihe irullt nf tin "lrrnsunrof the Pulled Htitti-H. Hi has pursuit! this uiurse In prerennie lo designating ,leistnrliK In Ihe nrdln iry wuy, which u.iniiels lh, in to bus bonds In the market nl a large pienilimi tlnti I using out niiiro fin the bonds than the ml ft um the llovi mini nt Ihi iiislnniH ruilpts are ixtienuly heavy nt Ihls purlkulit miimmi nf the senr nnd the tash biliiue uf lho TruiHurtr has graduiills Iniiuisul AMMCII'ATIN INTIlltllSl' "lie h is nNo dt i bled In iililii ip ite the Oitober Inliust iiiiioiintlng to about JKOOOOi) und wllh this In vhw onhiH have linn Issued In the vnrlous sub-treusurliH sub-treusurliH lo tush kui Ii loupiuis as innj be iiemiited Hi. m for pnsinint and the Trcasuici of Hit t'nllul states has been instruited to mall limits fur Interest on the reinsured bunds All this was decldul iiimii somt duss tigu tin I letters let-ters nnd tthgranis pn paled for Indns. 'The Hecretnrs sets In present iiindl-tlons iiindl-tlons no miHHliin for alarm He cills attention to tin fm t that there Is no evidence of n i in rimy famliio prwent or irospeillvo ilstwheu than In New Aork mil even lime the rule Is not high foi tomiuertlal piper nnd for rnm-merrlnl rnm-merrlnl inper In has the gnnler sollel-titdi. sollel-titdi. He Is well satlslleil with his efforts ef-forts to Iniritsu ilictilntlon which hu df elded upon III the mils mitnln. r, when prteint loiidltlona vine visible nnl baa ihe pns.n busy pnpnilng to meet nn enierkinty whlih lit doea not txjsict but whit h be thinks It is wise In provide ugnlnst Thus far he bus in ulo loqueMa mils nf such hanka in hold laigp dcpnsltn und hnvi viry llnilud clrculatliin nnd be la not asking these to Inireiw In Ihe maximum nnr lo InereoM' nt nil for the pies, nt lie iloen not ib sire lo force the banks lulu tho market to buy bonds nt n ml" higher than the flote rniiient Is willing to puv Ho does deslri to make tho best isissl-blc isissl-blc use of the free lunula now held by the hnuks Intldentally he llkca to en-tournke en-tournke banks to hold fie,, bonis during dur-ing lho dull months, billeting It Is mil h letter to hold bonds that will vhld one-half pel cent than to mnko tall loans nt 2 per tint 11,. la therefore there-fore kiting Hit bunkH that hoi I Ibesn an opiHirtunlty tn use them In must tx rellent udv intnge '1 his method If nur sued by the bulks, would give it slight element nt ilastltlts lo our iithtrwlse Inel latlc e uriency ssslem POSITION AH 'IO Clllt HI.ATION "Ills TioslHon ns ligiids Ineiinslng circulation Is ptrhipa lust exi rosH.i In n lellcr which he reienlly vviol,. a I anker ank-er that had abends been busing bonds, und which lie haa eonstntul to miku public It is as follows Treasury D pirtmenl Washington Pep. lembir 10 ll Mv Dear Kir our letter let-ter of the Klh Is rec.lveil I llnd It well nigh ImpnuHltde to tonv.s the nurtxirt of my request iveu to tlie binks of whom I hnvo nude the rcqutst, much less to the public 1 Irst In ruse of Imminent danger or actual disaster 1 will la. mum. Hid to use Ouvtrniuint deposits to buy lutreased circulation cir-culation Second I desire lo have from llirmannft to V0imm additional circulation irlnli.l prrpamturs no lhal It um be issuul In fnur dass InMend nr fortv "l Ii It .1 I will I., gild to huve lho bulks holding di posits nrrauge If they can, to borrow tho binds Fourth I dinlio tn st nd no bunk Into the market to biy bonds at thu present time I irtri I do not Lain to have the currency cur-rency lisued unl ss tondillons inaku It well nigh !mi tratlve 1 am miking no d man I uia.n any bank Tho amount of Ihtir tin ulailoii must Xm determined by their dire, tors hut Inasmuch Inas-much as the publle holds the Heirelur) of the In isurv somt what respnnslbl. for existing conditions I dt em ms si If Justitu d In using the iil.llu funds now held by various banks on .1. posit a. 1 Hunk best for II" public good anl In cusi of trouble trou-ble I may Ihlnk last to use these to buy Increased rlrtul itlon lh, banks now holding hold-ing surh funds h ivliig riff rente I.ittr In the tl iy lho fnlluwlnK wns given out nl tho 'lieustiry ib pnrtment Tho New York banks nie uiuiplainlng because the unprecedented demand lu the West Is re.hu Ing their uvuMnble cash 'liny then foi e ask that they may be allow, d to go Into the tuaiket pay tl 100 M fin n million bonds and receive fiom the treasurs n million dt-poiiit dt-poiiit with tin bonds as sctuilly 'I hey seem willing to do this and lm nase tho reserve isroooo against this linn awed llahlllts Thus tho Links would decrease de-crease their mailable eash $110 Oufl but they would be drawing tho Inietest on the bonds Inst ad nf this the "iecre tars Is loaning to mis bmk wlnr.vir situated upon Its free bonds In this way the WeHlorn demand upon the banks will be nlleved mid they will only have tn protut themselves ' |
