The Montgomery advertiser., 1906-03-25

Did you think 1t right to do this with the countys money?"
 ''Yes, did," he answered. If the banks had not thus been favored 1t would stop the wheels of commerce. The act of locking up $2.5oO,000 in the coun- ty treasury would have stopped busi- ness completely. There would have been no money in circulation"
 So with the City Bank officers. They wanted money to help business gener- ally. Mr. Hepburn writes that the bank had a tip of the approaching sale of the Union Pacific Railroad by the United States Government, and lin furtherance of your (the Secretary s) desire to prevent any. stringency in the money market" he would be obliged for a suggestion from you as to the amount of bonds which 1t would be good Judgment for Is to acquire at the present time, this move on our part being quite as much to the public in- terest as 1t is to our own interest as bankers" And also he hopes that a considerable portion of these funds will be left with the banks for suf- hcient length of time to afford req sonable profit"
 Mir. Gage replied that he was going to turn over all the money to the City Bank and let them distribute 1t to OlnGISs LAdL W0o lh0 SAANe prompted Mir. Stlllman to write the almost gleeful letter in which he re- ferred to the bankers experience" which enabled MT. Gage to appreciate ''our position"
 A busy period follows while the money Is pouring in on James Stillman. It looked for a moment as if he might miss S4,6e0, ,000, but he wires and gets that also. Then comes the dreadful process of giving up that money. MT. Sul1man says he and MT. Morgan want 1t to stay in the Street. After the needs of the Government are supplied which, of course, are paramount to all other considerations--it is, in the opln- ion of leading financiers, very desirable that as much of the Union Paciffc money be left in bank here where 1t will be available for commercial uses, as is possible" MT. Gage made satis- factory arrangement, What he took, he took slowly and MT. Hepburn writes that he likes ito have it withdrawn in this quiet way We deem 1t import ant for the interests of the whole coun- try that the New York banks, in their aggregate statement through the Clearing House, which Is made once a week telegraphed all over the country, show up as strongly as possible in the noint of reserve. We very much hope you will see your way clear to leave the remainder of this Union Pacific deposit with us until ouly." And MT. Gage says he will give due notice before taking away any more.
 War loans came next, and A. B. Hep burn notes with pleasure what you (Gage) says with reference to addition al deposits during the week." But he speaks of active money; and trouble comes. Mir. Gage buys some bonds just in time.
 within the last few days" writes Mir. Stillman, there has been a grow ing uneasiness as 1t became more and more difficult to borrow money upon time. This uneasiness was caused in large measure by an impression which has been somehow created that the pres ent administration would not relieve the money market Now that it is known what the policy or the Adminis tration Is confidence mas been restored. % The only adverse criticism l have heard have been on the part of the money lenders dealing in compara- lively small amounts. who can sec nothing beyond getting high rates of interest for themselves, Among the prominent men whom l have met to-