Rensselaer Journal, Volume 12, Number 17, Rensselaer, Jasper County, 2 October 1902 — WILL RELEASE NATIONAL FUNDS [ARTICLE]

WILL RELEASE NATIONAL FUNDS

Secretary Shaw Is Prepared to Relieve Stringency in Money Market WILL STAND BY THE BANKERS Interest Maturing Between October 1 and the End of the Fiscal Year Will Bo Taken Up at a Discount of 2.4 Por Cent Per Annum. Washington dispatch: Secretary of the Treasury Shaw has taken steps to relievo the money situation by announcing that ho would anticipate the interest on government bonds to June 30, 1908, which, if accepted by all the holders, would release 820,650,000. This action was determined upon on account of conditions resulting from the present stringency in the money market and in a measure as a reply to tho many rumors of experiments about to ba triad by the Secretary as head of the government finances. President Approves. Secretary Shaw’s course has the f»ll approval of President Roosevelt and not the slightest foundation exists sot rumors that have been current regarding friction between tho President and the Secretary on tho questions of finance and other national Issues.

Secretary Shaw also took steps to deny In an emphatic manner that ho had any Intention of resigning. Secretary Shaw admits that there is a stringency in the money market just now, due to the great demand for money in the enormous business being done throughout the country. He gave out the following statement: Secretary’s Statement. “Money once covered into the tv***ury (and this, of course, Includes the subtreasuries) cannot thereafter be deposited In banks. All custom receipts are by law payable to the treasury and subtreasuries. Tho only fund therefore available In banks Is Internal revenue and miscellaneous receipts before they have been actually covered Into the treasury. These amount to about 8500,000 per day, and since the stringency arose to their fullest extent they have been steadfastly returned to circulation. This policy will be continued for thirty or sixty days If needed, and longer If necessary. Circulation Increases. “In the meantime national bank dr* culatlon has been increased about 87,000,000, largely Induced by the distribution of deposits and the further increase to the amount of 38,000,000 Is assured. “All rumors of experiments have been unauthorized by the Treasury Department It is to be hoped that the public will place no credence In vagaries started by irresponsible and untrusted men of the street It Is also hoped that the country will understand that the Treasury Department the extent of Its ability, will stand by the banks, East and West, North and South, and It is hoped also that the banks will stand by every business and every interest that Is worth protecting. Anticipates Interest. “The only way to get money out of the treasury Into circulation, after It has been actually covered In, Is by the payment of legal obligations of the government These may be anticipated. The department did anticipate the October Interest It now offers to anticipate all interests maturing between Oct 1 and the end of the fiscal year. If presented within sixty days, at a rebate of two-tenths of 1 per cent per month, which Is at tho rate of 2.4 per cent per annum. In other words, these obligations will bo prepaid at such a rate as to allow tho government? to profit thereby at 2.4 per cent per annum. Tne amount maturing before June 30, 1903, is In round figures 820,650,000. The profit to tho government if this offer shall be accepted will be in round figures 8220000. “There will be no experiments tried and no policy adopted until after mature deliberation, and no feelers will be sent ouL Anything to the contrary should be discredited.”