New-York tribune., 1907-11-22
B4NKS WILL SUBSCRIBE.
Local Nationals to Take $50, 100000
of Government Certificates.

The national banks Of this city it is now under
stood have arranged subscribe for about S20oeO-
600 Of the new per cent government certificates Of
Indebtedness. which will be used by them as col
lateral for circulation. The notes to be paid
for in cash. of which about one-half will be allowed
10 remain deposit with the banks the Secretary
OF the Treasury transferring the other half at an
early day TO various parts of the country Among
The subscribers here is the Chemical National
Bank, which has never in the past taken out cir
cuation It is expected by local bankers that
heavy subscriptions for the per cent notes will be
made by out-of-town institutions which have been
for many days drawing so largely on currency
from New York.
Reports from Washington representing the Secre
tary of the Treasury displeased at the alleged
action Of New York banks in taking advantage Of
the relie. afforded by the Treasury In pouring
money into this centre 10 increase their reserves
instead OF employing these funds in aleviating the
stringency, were discussed with interest in Wall
Street
There is some foundation for the charge Of hoard
ing but it can be said on authority that in general
the banks of New York blameless in the mat
ter and working together in complete co-opera-
fion, using their reserves as reserves should be
used in crises, and not piling up in their vaults
money received by them from the government.
This cannot be said of of the banks in the
interior which known 10 have accumulated
reserves so large not to be accounted for
any theory other than that their officers have been
acting under excessive apprehension perhaps due
10 the fact that they have never before been
through financial crisis
The premium currency rose again yesterday,
principally bidding by banks which found IL
necessary 10 forward funds their correspond
ents at various interior points. good deal of cur
rency was disposed OF by the money dealers at
81 per cent. and a few transactions at 3l2 per
cent were reported The premium at the close OF
business per cent On the curb. where the
dealings were between owners of currency and
brokers acting the direct agents Of banks the
premium paid for boarded money was as high
per cent. most OF the transactions however, being
at between and 27s per cent.
No gold engagements were announced yesterday.
The foreign exchange market strong, rates adj
vancng about rs points and then declining 25 points.
Call money went up to Is per cent, and closed at g.
with most of the days loans arranged at y per
cent. The stock market weak during most Of
the day, ralying in the last half hour revival
Of the that the Bank of France would send
10 this country large amount OF gold. taking new
government per cent notes in exchange. Especial
weakness was shown by the preferred stocks of in
dustrials and by the Erie and Southern Railway
preference shares.
The White Star liner Majestic which arrived here
yesterday from Southampton, brought s., 200 in
gold bars and coin for several local banks. The
boxes containing the coin were deposited in the
SIb-Treasury and the bars were taken to the
Assay Office.