The Birmingham age-herald., 1907-12-02
Money May Be Drug on the Market In a Short 
 Time
BANKS ARE REPORTING
 LARGE RESERVE FUNDS
National Banks Have Withstood the Strain Wonderfully WeIl-Less Than Dozen Failures Re-
 ported in Two Months.

ported m Wo Months.
 Washington, December 1.-The close of the past week found a confident feeline, prevailing in banking circles and at the treasury, that the financial situation of tho country would soon resume it's nor mai state. The intervention of the sov- ernment two weeks ago in which it was proposed to issue Si5o. in new se- curities accomplished the purpose antic. ipated by President Roosevelt and Sec retary Cortelyou in demonstrating tho ability of the treasury 10 relieve dis turbed conditions. This result having been accomplished. the issues of new securities will be only about half what was proposed.
 In this respect the present administra- tion departed from the policy pursued in 1893, when measures of relief were usual ly adopted, only they become imperative It Is felt at the treasury that the wis dom of the new policy has been vindi- cated-that it was better to take reso- lute and broad measures, even if they went beyond the immediate needs of the situation.
 The issues of the Panama bonds will be for the full s50,00OO0o which was of fered but the issues of one year treasury certificates will not much exceed $250Oo,- GOO,
 Jt is probable also that the issues of nkw bank note circulation will fall epn- siSeraby within some of the earlier esti- mates, because of the abundance of cur rency which win he available when cur r-nuy -paymcnts are resumed oy the banks and exchanges resume their nor- maj course.
 The Panama Bonds.
 Since the Panama bonds issued by the treasury in the first instance Is for the public money which is paid for them and left on deposit with the purchasing banks, the bonds are not expected to be deposited to their entire amount Tor new bank note circulation. While this would have been done if the new circulation had been required, 1t Is now expected at the treasury that it will not be done to anything like the full issue of bonds.
 If DuDl1C nDutN IS liOlA the banks in the spring, the bonds will be released and could be substituted as security for circulation issued against the one year certificates, if the latter were then paid off with interest to the date of payment
 The information reaching Secretary cortelyou and Comptroller Rdgely IS very favorable to the resumption of cash navments by the banks as soon as the December pay rolls have been disposed ot-
 Bankers who have been in town have in many cases. reported cash reserves n their institutions much in excess of legal requirements. Some banks which arc not in the central reserve cities are holding cash to as high proportion as 40 to S0 ner cent in their demand liabilities.
 Pressure Diminishing.
 Evidence that pressure for currency is diminishing is found in the statement of the New York clearing house banks on Saturday with it's actual increase of near lv s2.0O0OOO in cash and it's reduction pt the deficit in reserves by over sl,o00,O0o
 With gold imports aggregating ss5,OooOoo. including what is on the way with new bank note circulation already taken to the amount of about <0,0co0O within the past month and additional circulation in sight to the amount of perhaps A0,00oOn. making d total of new currency of about s1S5. coo within tife last few weeks, 1t is not believed that it will be necessary to go much further in swelling the circula- tion.
 On the contrary. 1t is anticipated that money will become a drag on the market within a short time. In the panic Of lS9a lawful money reserves stood on July F, 1893, at S2s9, ,544s50, which was the low point shown by the reports to the comp troller. but increased by the date of the statement for May I, 1891 to si52 10S,214
 But Few Failures.
 The manner in which the national banks have stood the strain has been very grati- lying to Comptroller Ridgely. Less than a dozen failures have occurred since De- tober 1, which is not much above the average number of normal times. This is in striking contrast with conditions in 1893. when more than l6o suspensions oc- cured at the height of the panic. The fact that about half of the failures in 1893 were not followed by reopening indl- cates that the situation at present is much stronger than at that time.
 It is felt at the treasury that the inrue- diate emergency has so nearly passed that it will not be necessary for Congress to proceed with hasty and il-considered measures. but it is hoped that some in- telligent legislation will be enacted which will enable the banks to meet similar con- ditlons in the future without suspendins currency payment and without recourse to the treasury for special measures or relief.