New-York tribune., 1906-12-06


Per capita circulation February /, 1903 2s.lI
Per capita circulation November 1. 1906. SS6s
Increase al
During the summer of 1902 surplus bank reserves
This is Of the siIrest indications Of trouble IN
sue the secretafy Of the treasury caused to be
printed as much unOrdeTed national bank circula-
turn out, in addition to the ordinary demands tsDon
it, and In September OF that year offered TO accept
for deposits Of public money then held by the
banks for which this additional circulation mad
should be Immediately made the basis for circula-
Der interest due on outstanding Obligations Of the
government. and offered to purchase for the sink
loan OF 1925 that might be offered at 1874 and in
posts IN national banks In a considerable sum- In
these several ways he restored to the channels OF
national bank circulation the extent Of S1S.O0o.-
coo He also issued an announcement that he would
| liquidate banks which fail to maintain their re-
serTe should they fail to maintain the same
These operations were not begun. however until
leading bankers of New York city justified the issu
ance of Clearing House certificates. and when re-
sort thereto was being seriously considered Two
OF these methods 0he acGsRtanSe & o{ otHer taad nan
tho announcement that the discretion with which
tho Secretary of the Treasury IS clothed by statute
maintain reserve against government deposits) re-
NO lr % o,e iTi dnbted % I tbair naatv and no busi
ness man now questions their necessity. Financiers
known have publicly announced, that but for what
was then done panic would have ensued Tivallng
I'm severity any i'm our history and which would
possibly have continued pntil industrial conditions
The law authorizes the Secretary of the Treasury
to deposit I'm national hanks only Internal revenue
practicabie to relieve a monetary strngency with
to about $500 900 per day the Secretary early 1903
ordered their segregation and the ac%unluiauon or
! separate and distinct fund, composed entirely OF
| internal revenue and miscellaneous receipts, so as
prompt relief by large deposits. This practice mas
DHs II the fall Of Ss tnsre vas a ssSES@ to This fhs
was accompished by hasng o1tstadng goo 70
ana 6 9 9ee' %ePGss ans N bamE mdSha
| was also stimulated to some extent
PANAMA CANAL PAYMENTS.
| In the spring of 1eoi by direct appropriation OF
Congress $1,000 900 was paid to tho government OF
| Panama aud $pOOo.oOo to the Panama Canal Com
esnsl eansl 'Sc Scross }!s t iss Td .ratory to making
goyernmSn l9osits @ from an eposary banks out
side to those within th" lily Gf New ork ana @ me
deP3sitSries in that Gt The payment n Of $o0 Sdo g
! accomplished by the appointment ot J; = MORGAN
CO.. diFburang agents for S The ood GeaSrgy G sur
| then issued to said firm. which was paid through
| the Clearing House. MorsaE Co at once de-
| In the hanks from which tn" money was drawn
with which 10 pay tho warrant,
sand dollars actually changed hands money rates
wNr" not affected in the slightest d"grce, and not
/ = dollar Of gold was shipped from this country
Morgan 4 % through the purchase from time To
! time Of foreign exchange Neither Was there any
and look - ,Ie FImnrb ,.,II tonninl f Et5ei tbi
pay Tho Kcpubli. of Panama invested most Of the
purrhaS" prio" 81 h"r "c@sinn ia the United States
ao@dci "9 }* S ''"'7 '' money TO ''' country were
! No purchases for the sinking fund were made dur
For reasons which c9unot hc Gully explained roy
CnUrs lell or during tn" calendar year 1901 and the
/ early months at 1905, winch. coupled with tine ex .
+ tfiordnary 'Np"rduuTes. crused deficit for ths
!uHke 500 ms dSa'H and T." meet these expeDdf-
/ lures S'Gt%'~p was WithGraWu from der0sitarv
'i"nt {" in@:.r" ccosi attsri. during the sum
New York tity fo; heav sod56G va pt,1N thc rotd H
! 'n E'H money a9"tuated i'om below l 20 per
! ''It. averaging for the se,sou. perhaps about ;
' sg.IP'trd m .T, .trnE"aey va deferred how
Ep,..hl."hi no4ds NJ" "o45H!S of 1890, which. in
tn" price oG cousos to tot where hsnk oN So,Td
nc nal2;G'anS M ~ "6 glrc9IaiicH profitable. and an
'n' im Fa1, lhoIsr sIg' ~ ,5 m9nih5 Ge!2tod
rt!i9n@i bank depostarios in seyor Of tho prirCta.i
Dd-+ +h" satisfactory security Other than govern
standing tia, would lie Iecllad ~ IHIy ~ b
rstIt P,ris ms r@hrf Vas not sufficient however
] ]til'lhS tlef} ware. West =. well as East found
IN tne IpriHg Win surplus ex-
81 npathetc"I'y IN Very m1rked decline in st@rl
ilrS GNNh2'.-e sufficient % have insured the i'm
- buy the exchange with which 20 sr,, ~ i'S' S'1!3h
. Secretary then offered to make deposits sa,ie-
engagements of gold for importation m saT,,r a.,
+ 20 promptly returned when the gold acfu,l'I.
rived In this way approximately $50 06dS i,,,,r. ~
nan @tA ',titudt~l m Eol'. largely v-as
brought from abroad. Most OF this c.tnis 80,
tE.4iope tHt "a part from Australia ana S.tuth
This was accomplished without expenso ~ tho
5oVernn'nt ard without profit TO the fmnort in .
honk[. hat with great benefit To the business in,
i iIFSrs o. IN the c29hliE The various banks hich
imported THIS gold lost in the Transactions several
lolNllI GOl ars as established by their bcoka- thT
price or exchange promptly advenced SO that iaer-
chantS and exporters of gram and cotton h1ynu
exchange e. sell benefited in excess az Si5I IN
onG interest rates dropped sufficiently 10 aTstt /,
S,'tlns 10 Borrowers In New York City a!one of
Ciul strIrSen lies. which has been once since To-
ptat"t, attracted far more attention throus bout
Europe than in the United States. though il has
1erh WldelN commented upon in both places. IL
has at least demonstrated that the United States
Is IN position moro etfectually influence inter
national financial conditions than is orhcr
country and jusuheS great caution lest while pro-
tectinC our own Interests cause distress else
where which will soon he reflected here
The United states can i'll afford disturb
cldl conditions IN Europe, and II necessary to
vent it. the present head of tho Treasury Depart
hondI hanks on condition that the banks I'm turn
promptly deposit equal amount abroad. The
world throughout IS enjoying unprecedented
period OF prosperity, and no government operations
In this country must be permitted interfere there
with either at home abroad The Treasury now
holds November 2N in its vaults working
balance OF SIS,0O0O. as much can possibly be
spared Of which Will he deposited ~ business con-
dtons require il. though II become necessary 20
checks depositary hanks. The money OF the
country belongs 10 tho people. and Treasury opera
tions must he made subordinate 20 the business IN
terCsts Of the country
StT rates on call money in New York. however.
are not unmiXed evil. nor are they q very rell-
able barometer. For instance. during the forenoon