The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-11-09
Clamor for Currency With
Which to Move Crops
Is Unabated.
FAVOR SHOWN TO
INTERIOR BANKS
.Lusitania Brings Over More
Than Twelve Millions, Which,
With Cold Engaged, Will
Afford Basis for Nearly
Two Hundred Mil
lion in Loans.

NEW YORK. November s.-The lead
Ing New York banks were exertlng
thems elves actively to-day to meet the
demands of their country correspon-
dents and depositors for currsncy. They
declare that the suggestions made
from several Western sources that they
are not meeting legitimats demands
for currency from the West are en-.
on the contrary, taking every pract!.
cable MEASURE TO aid the Western ard
Southern banks. One of these large
banks, with several thousand corrs-
spondents. has depleted its reserve by
about a quarter during ths last few
weeks to supply currency where 1t Is
most needed. and has made large ship
ments to banks in San Antonio, Cal
weston. Memphis. Mobile. Atlanta and
other Southern points. The best pos
sible judgment is used in meeting these
country demands Tor currency.
II Is not usual, except in special
cases. to ship all that is asked. but
q portion OF what is asked ranging
around one half Is usually shipped, the
proportion varying according to the
cash strength of the bank calling for
additional currency or the supply de-
manded for Legitimate purposes.
Favor Interior Banks.
Special favor is shown to tho small.
interior banks. where there is no
clearing house. because II is realized
that they are not in a position to
count upon cooperation and the use
OF clearing house certificates. and 1t Is
admitted that the cotton movement is
seriously checked by the lack of small
hills and silver to pay the small grow
ers. and hy the inability OF the South
ern banks TO handle the immense vol
uine OF business accommodating at
Southern points.
The grain shipments are in better
shape. owing to the gold secured by
the banks of Minneapolis and at ST.
Paul. and arrangements for paying cash
in New York on grain bills. The New
York banks feel bound to retain cer-
tain proportion OF reserve to guard
they fulfil in substance the function
which is fulfilled In London by the
Bank OF England and in Paris by the
Bank of France as the ultimate re-
source in emergency.
The aid which Is being rendered to
the situation is indicated by the fact
that the total engagements of gold
have now reached s49.250.0O0. and of
the amount engaged the sum OF $2l,.
3ll 900 has already arrived. including
sl2,36ll5o. which was laid down from
the Lusitania this morning.
Large Basis for Loans.
This gold will afford the basis OF
nearly $2oo.0O0OcO in loans. and will
materially assist the New York banks
in thtir efforts to meet the pressure
for currency throughout the country.
The fact that practically s6o.o0o.O00 in
currency disappeared from the New
York banks within a week. as indi-
Gated BY the last bank statement. is
considered sufficient evidence that New
York banks are doing their best to
meet the great demands upon them. It
10 not possible to determine what pro-
and what proportion Went into hoards
In New York.
Gold Being Distributed.
The stream OF Europe's gold pouring
into New York has not been halted
here to meet local demands, but Is be-
ing allowed to flow through the tinanv
cial arteries OF the United States to
relieve the needs OF agriculture and
other industries generally. Gold inl-
porters state that nearly all of the
9sl,uuV,UOu WnlCn nus ALREADY TeuCneu
here will soon find It's way to every
quarter. Nearly sl2,oOo.ooo has been
shipped to the interior this week. Gold
has been shipped from here to Chicago
IN such large amounts. it is understood
in7local banking circulars, that the is
suance OF circulating bank scrip in
Chicago possibly may not be necessary.
The greater part of the tl2 2.00O,0O0
OF the $4,000 600 still to come. will be
iulmed lately expressed to out -of-toWn
New York finance. according to. gold
importers, has there been SO much
honey engaged abroad by out-of town
banks as at present.
There need be no fears" said a
member OF one of the largest gold im-
porting firms tonight. that thero will
be a cessation. of gold Importation be-
cause of the increase in the discount
rates Of the banks of England and OF
Germany" He added that without
doubt the greater part Of the gold
imports are being sant to the, country
banks. who arc making their demands
on the local institutions for their ball
Ances.