The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-10-31
for National Bank
Circulation Extended.
More Latitude Permitted in
Matter of Securities.
CAN RELEASE BONDS.
Held as Guarantee for Treasury
Deposits.
Permits Issue of Notes to EX-
tent of SO, 100000.

Washington, Oct. 31.-Means have
ment which promise to terminate the
currency stringency. Secretary Cortel-
you announced he had decided to ac-
cept as security for government de-
posits banking paper which is ap-
proved by the savings banks laws of
Connecticut and New Jersey.
Heretofore the securities accepted
by the secretary, with the exception of
government bonds, have been those
coming within the provisions of the
banking laws of Massachusetts, and
New York. The difference between
the laws OF Connecticut and New Jer-
sey and those of Massachusetts, and
New York relates only to the time
when dividends shall be paid.
BY authorizing the extension the
banking paper which becomes avail
able as security for deposits is in
creased by about 100000. This
is more money, of course, than the
government has in its vaults or can
possibly have any use for.
Approval for Roberts Plan.
Besides this action, Secretary
Cortelyou and Controller of the Cur
rency Ridgely have given full ap-
proval of the plan of former Director
of the Mint George H. Roberts, now
president of the Commercial National
bank of Chicago, to get hold of gov
eminent bonds to serve as a basis for
additional bank note circulation which
the Commercial bank desires to issue
as a result of it's increased capitaliza-
ton. This privilege was sought no.
only for the Commercial but for all
other banks which have increased
their capitalization, but have been I'M
able to secure the government bonds
to file with the treasury as security
therefor in accordance with the law.
1t is estimated there are about $75,-
100000 of United States bonds in the
treasury as security for deposits. 1t
has been the policy in the past, and
Secretary Cortelyou is continuing it,
to permit the release of government
bonds held as security for deposits
a basis for increasing circulation, pro-
vided they are replaced by satisfac-
tory paper
For these bonds now may be sub
stituted securities acceptable under
laws of the four states named above
as the result of Secretary Cortelyou's
action. Controller Ridgely estimates
+ will be possible to release prac-
that additional circulation that the
banks can issue will amount to about
$50, 100000 or $65,000.000.
RefIling Treasury Golfers.
Secretary Cortelyou also took steps
to enlarge the amount of cash in the
treasury, which has been reduced to
about s17, 414,000 in consequence of his
action in depositing more than $50, 900, :
GOO In national bank repositories at New
York and Pittsburg. He has called
upon various disbursing officers to re-
turn to the treasury large sums of mon
ev which they hold for disbursing pur-
r,oses The working balance of the de-
partment will be increased by this ac-
lion to about twenty-four or twenty-five
million dollars.
It is said by New York bankers that
they cannot return airy deposits loaned
70 them under a month, by which time
money from the crops and various other
sources will be rolling in. Although re-
nnonsible financiers of Chicago, St.
louis. and Cincinnati claim they will
not need government assistance. sus-
gesrions have been made to Secretary
Tortelvou that he should be prepared
n give it to them in case of need. The
secretary considers the suggestion time