Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1907-12-05
FEAR OF INITIATION
In Financial Circles, 1t Is Thought
Present Methods May Be Car
ried Too Far.
MAY FORCE GOLD ABOARD
This Explains the Action Of Treasury
officials In Declining Subscrlp-
lions TO Large Part Of
Proposed Certificates.

New York, Dec. 2.-It Is significant
Of the change In financial opinion that
most Of the discussion amongst finan-
cial men last week dealt with the
dreaded effect Of state OF Imitation
Of the currency, into which 1t was
feared the country might emerge with
the passing Of the effects Of irrational
distrust. The bringing forward Of this
subject into debate while the premium
on the currency was still being paid,
and other active measures for relief
Of the currency famine being pursued
was due to the plain lesson of ex-
perience in past crisises Of similar
kind. In all Of these the first return
of confidence and the re-establishment
OF credit have brought condition OF
actual redundancy of the money mar
ket, heavy accumulation Of banking
reserves, and free export movement
OF gold. While the enormous mass OF
gold that has flowed to the United
States in response to the urgent re-
Quirements developed by the crisis is
admittedly In excess of the normal
requirements of the coming period,
the return flow of gold Is bound to
have an unfavorable effect upon finan-
cial sentiment and in the event of Its
undue stimulation by any imitation OF
paper note issues, which would tend
to force out gold, the danger Of q
check being administered to the re-
covery in commercial activity Is taken
anxious account Of. The decision OF
the United States treasury department
to limit the allotments Of 3 per cent
treasury notes and to accept no
more bids for them was the outcome
of this new phase Of the situation
which the turn towards normal cOndi-
lions has developed The opinion Of
the treasury department that the Sec
rotary may call in these certificates
before their one,year period has ex-
pired and so provide>for the immedi'
ate requirement Of all bank notes is
sued against them offers another re-
source for contraction in the event Of |
any symptom Of imitation.
The engagement of nearly 100000
900 of gold for export, Of which ap-
proximately S60,00O,000 has been re-
ceived, the deposit with the national
banks Of about $67,OOO,OOO Of govern
ment funds and the issue Of new bank
notes to the amount of about $40,-
000,0 900 have met the present require
ments and opened the way to the re-
sumption Of cash payments by the
banks, now clearly at hand. The dis
appearance of. the premium on cur
rency, which by alternative statement
Of terms, Is discount on bank
checks, win herald the restoration TO
the use Of many instruments Of credit
which share In some Of the functions
as money and Of which the driving
out Of use forced the extraordinary
demand for actual cash. The re-estab-
llshment Of credit is expected to lead
to a prompt resumption Of exchange
operations between the different
money centers in this country, the
dislocation of which has formed the
most serious embarrassment to the
conduct Of commercial operations.
The check which the embarrassment
have caused to business so far as they
are themselves concerned, will be re-
moved at an early day and to that
extent leave the way open for prompt
recovery