Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-06

refunding, between April and May 81.
5O307. 800, and there remained outstand-
ing, subject to redemption under the call
above mentioned. bonds to the amount OF
$36 121, $50. which matured and ceased to
bear interest July 2. 1907.
AS the time APPROACHED for the redemp-
ton OF the per cent bonds It was de-
cided to withdraw from the banks the
deposits lodged with them In september
last, In order that the actual cash in the
Treasury might not be materially reduced
by the redemption Of the maturing bonds
and that the de partment might be In posi-
ton later In the year to AFFORD reiief TO
the money market during the crop-mov1ng
period. The call for the return Of the
deposits was made on ths 18th of June,
the date Of return to be July 10 or earlier.
at the convenience OF the depositary
banks. The money was promptly lodged
In the Treasury on or before the DAY
mentioned and without any disturbance to
the monetary situation.
In pursuance of the authority contained
In the act Of Congress approved March a.
1907. all collectors Of customs, except
those In subtreasury cities. have been In
structed to deposit their entire collections
with national bank depositary If there
be one located in the same town. There
have also been transferred to banks from
time to time of the receipts of customs in
subtreasury cities an aggregate amount
of $50. 724. 404.20. The total sum transfer
red to national bank depositaries in, all
cities receiving customs revenues up to
November i is approximately S11S515. 397.
The ACCESSIBILITY Of depositing customs
receipts in this manner at subtreasury
cities has been under consideration for
some time. but no satisfactory conclusion
has yet been reached.
Emergency Measures.
During the summer the gradual increas-
ing rate of interest charged for call
money, time money and discounts Of
commercial bills indicated a progressive
diminution in the amount of available
cash. Accordingly. it was decided August
q, 1907, to make each week substantial
deposits in tine different sections of me
country, with the particular object of ia
cilitating the fall movement of the crops.
In his announcement Of this plan the
Secretary of the Treasury said:
This action Is taken to meet the COM
mercial and industrial needs Of the coun-
try at this season and is believed to BE-
preferable to waiting until time OF acute
stringency, when the only alternative
latter policy the Secretary desires to
supersede by one which shall have as its
Ultimate object the adjustment of the
operations of the Treasury Department,
as rapidly as may be practicable under
Existing law. in such manner as shall pre-
ing factor in the business world"
These distributions were continued
weekly until the aggregate amount Of
s26. 600 had been SO distributed. Not
outstanding this measure. there was
constantly increasing stringency in the
monetary centers, which eliminated in
he forced suspensions Of several impor-
ant institutions.
Prior to this crisis the shipments of cur
rency to tn, west by eastern tanks for
q
cant. There had been no important shi =
nents of gold abroad so the none, airy
stringency seemed to be due, In large
measure, to the hoard ng OF funds by
owners thereof who had become app e.
hensive of their financial safety. AS the
crisis approached the department adopted
the strongest measures to give materia
assistance. Within four days there was
transferred from the Treasury to the
banks the sum of $50, 900, 600, the security
received therefor being .uch state. munic-
ipal and railroad securities as are accept
able under the laws of the states of New
York; Massachusetts,. Connecticut and
New Jersey as investments by savings
banks. On November IL there were on
deposit In national-bank depos. taries:
the credit Of the treasurer of
the United States. $212.95S 81 "a
10 the credit Of discussing officers 1857, 425 10
Total. NEUTRALITY-SUSPICIOUS.. $226, S3G 237 04
tional banks in every state and territory
of the Union.
Prevented a Panic.
These deposits. and other Treasury oper-
atoms, in connection with the associated
forts Of prominent financiers and other
business men. who aided first by giving
important relief to certain embarrassed
Institutions and afterward by providing
for the imports Of gold of which up to
November Is there had been engaged
more than $6O,OOU.OUV. operated to pre-
vent a dangerous panic. The Secretary OF
the Treasury has made such adjustment
of deposits between the various cities and
aections as was possible In such a time
# financial stress, and through the CO.
operation Of eastern bankers has secured
the transfer, through the usual CONNER
clal channels. of large sums ofNmoney to
the south, the west, the northwest and
the Pacific coast There was, however.
great financial distress in many sections
IT the country and remarkable scarcity
Of currency. The clearing houses in
nearly all the prominent cities of the
United States felt obliged to adopt such
measures of relief as they found available
The remarkably sound and prosperous
condition of the country would seem to
warrant the .elief that the strain will
cave behind no extensive business de-
preston.
When the story o. the recent CONNER
cal and industrial disturbance has been
fully told, am cor5dent that many mis-
apprehenSions viii. be cleared away and
that the inter dependence of all sections
OF the country will be more fully under
stood. Il Is said tn. many Of our D eople
ave boarded money. This Is undeubted-
~ true; but SC Rave many of the banks,
We hear little. however of the untold
numb ,rs Of patriotic citizens who. know
ing that the banking situation throughout
the country was essentially sound. did
not allow themselves to be Influenced by
the excitement of the moment, but CO.
operated with national banks. saving
banks. trust companies and other tnstitu-
tons to support credit and restore conf
dence.
The Secretary Of the Treasury .s given
wide discretion In many matt rs VIII r In
he Is rarely called upon to exercise II, ard
little, If any. In others where it Is need d
daily. particularly as to certain of thos
having to do with the vitality important
subject OF our currency. In times of
emergency his hands are virtually tied.
If in such periods of stress, in an effort
to avert calamity and serve the interests
of all the people. he is obliged to resort
to unusual measures, criticism is unfor-
tunately in many instances directed not
to the inadequacy Of the system, but solely
to the effort to give relief, even though it