Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-12-09
BANK STATEMENTS
REVEAL PLETHORA
OF CASH ON HAND
IN MANY CASES DOUBLE
LEGAL RESERVE IS HELD
of Excitement Attending
Last Weeks important Fail
ures Pointed Out As Empha-
sizing General Financial
Strength,

OH
Z View York. Dec. ,S.-The events of
Q the past week in the financial world
p have been such as usually mark the
gradual return Of confidence ana the
restoration Of normal conditions In the
banks. The decision of the secretary
Of the treasury to issue only about
J $40. 600. 900 OF the $50. 600. 600 In new
securities. which he expressed a will
ingness to issue If conditions required.
the disclosure Of unusually strong re-
serves by country banks reporting to
the controller Of the treasury. the de-
cline in the currency premium n
the Improvement In the New York
bank statement. all have been features
OF the week which have tended to-
wards stability and reinsurance. The
action Of the secretary Of the treas
ury. In limiting the issues OF securi-
ties. was a part Of the original plan
recommended TO him, to meet the sit
uation by a resolute and adequate
measure. but to carry the execution of
the measure no further thar circum-
stances required. The result of the
limiting the issue Of the Panama ? per
cent bonds to $25. 600. 900 and the one
year treasury certificates to about
$4,000, 600 viii be to considerably
! simplify the problem OF treasury man
agement n money market conditions
during the spring. II is anticipated
by far-sighted bankers here that there
I VIII be a plethora of money soon in
stead OF a dearth. and IL viii be nee
essary to reduce in some way the
large volume Of currency which has
been brought into use during the
crisis.
The Increase In money circulation
outside the treasury. as shown by the
monthly statement of the treasury de-
partment for November. is S131.S72.-
SS1. OF this amount the increase I'm
gold in the country rs about S72. 600 /
300. including domestic production as
well as Importation from abroad. The
other principal form of increase in
bank circulation in which an increase
of S4.538,593 was obtained by the dis
hursemcnt OF bank notes held in the
treasury cash and SAG. 237,730 was OBJ
tanned by actual increase IN the notes
issued by the comptroller n out
standing. There have been fears In
some quarters that ir anything ap-
preaching 500. 100000 IN new bank
notes were Issued upon the securities
Of the new ouc-year certificates the
resulting initiation would expel gold IN
large amounts after the credits estab-
lished by the crop movement were ex-
hausted. This danger will be reduced
TO a minimum by the relatively small
issues made by the treasury, and IL
small mounts in gold should be ex-
norted 10 is felt they would be spread
IN view OF the large gold resources in
the country. TO which President
Roosevelt called attention IN
Ing the loans The total gold I'm the
country reported by the last treasury
statement Is S1,56171d.719. which Is
equal 10 more than so per cent of the
total money IN circulation. Some fur
Their increase In bank circulation is
expected here uuon the Panam bonds n
ana the treasury certificates. but IL Is /
believed that the bonds viii be depos-
tied in MANY cases as security for the
nnhlic money which has been left ,
with the banks. and will not be en- !
as a basis for circulation until +
the one year certificates are cancelled a
'7 the sDrirg. when money to be with 1
drawn by the treasury for the redemp- }
ton of Tho certificates will release the I
bonds and the latter can hen be
substituted for tho certificates as Sc
curity Tor circulation. If this proves
To be the ease the increase In AMI a
circulation viii not be very great dur i.
ing the next few months. and may :
even turn downward as soon as Il be- h
apparent that the banks have &
a large accumulation Of cash for ,
W NiAH NAAtfN Is NNANAf AtAiNhlNls lIN -
curtallment Of the issues by the gov !
'rnment viii reduce the cost OF the \
Dne-year certificates to about $780,
700. This estimate Is based Upon the p
'ancellntion Of SiO1 .0O0. 900 In the GER e
~ificatcs in six months, which will n
the interest paid only n and
half per cent Mhile The fun interest
# three per cent is paid on the re-
naming amount Of five million dol 4
4ra Who rannVfg nF fha ~RnnnifARn pF al
he national banks on December 2, a
are published IN various local L
les and are gradually reaching the
comptroller of the currency, are verb
wing the authorization OF the leading p
set forth bv the Associated
Press a week ago. that large reserves T
would be disclosed lin the interior NJ
'anks. thst the disclosure would tend =
% restore confidence and that the !.
would be willing 10 release such >,
Ncess reserves after making their =
tatements. \ rough calculation Of
reports Of tho Chicago banks. in :
ludins some state banks indicates re-
erves OF nearly 35 per cen About
same proportion is reported from
orleans. and SIN higher reserves
Z smaller places. where the law re-
uircs ~ per cent. including deposits
n reserve cities The fact that two
Of National banks "a a certain
.egree Of Importance have occurred
uring the week without apparently
ausing any hook 60 confidence. even
10 their own localities. and still less Ca
he financial ccnters. b. regarded here
s another favorable indication Of the
strength
The fact that thu presidential cleo
j. approaching and hat there rs
.idc diversity Of view as TO the prop
D. form Of new legislation. eads TO the
that the subject will be only
onsidered without final action during
he present session. The necessity OF
lme important measures OF reform Is
generally recognized by the
roWth Of sentiment for "a strong cen
.al bank Is checking IN some degree
movement for giving wider powers
note issue Go The existing national
some bankers declare that the