The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-11-29

with much larger aggregates, the
specie in national banks by the state
reached s6s1,1o7.75o. On August %.
1907. the banks had increased their
specie holdings by $66. .500,000: since
November IL; 1905. had increased
their legal tender holdings from $751;
a73.sS7 to s17o,515,7S2. They had
thus prepared for the storm to the ex-
tent of about rs millions. Since Au-
gust government deposits have arisen
Dy 6I millions. gold has poured into
New York to the amount of "a mil
Mons and bank note circulation has
oeen increased by approximately 40
millions. Thus from various sources
though not at any one time. 267
millions above their capital reserve a
year ago. This amount will be still
further increased by the deposit of II
mlllions from the proceeds of the new
bonds. From the standpoint of cir
culation there will be an increase
whose maximum limit will be S5 mil
mons, II all the new securities were
USED TO secure bank note circulation.
New Circulation.
Various causes are likely to reduce
TINS maximum very considerably, but
1t would not be surprising If sixty
millions in new circulation were taken
out In the next two weeks after the
allotment of the new securities. OF
the total new money, so to speak, ag-
gregattng @00,000.000 dollars thus
put at the command of the banks
within year. not all represent a posi-
tive addition to the circulation since
1t has passed through the hands of
the banks at different times and much
or 1t was already in existence. The
net net, increase in circulation. however:
VIII not be less than $200,000,000, and
this. It Is believed by bankers. will
be redundant by spring. The policy
or the treasury therefore in providing
FOR the redemption OF the one year
CGrflf1NQf I'm q wh@v forv, ~
one year will involve the elimination
of the bank note circulation based
upon these certificates and q consider
able withdrawal of cash from banks
limit Of nine millions per month i'm
posed upon the retirement of bank
note circulation does not apply to
notes notes based upon securities which
have been called for redemption re-
moves any obstacle to the prompt re-
tirement Of excessive bank note issues
by the payment Of lawful money into
the treasury as soon as the securities
are called and paid.
The estimates made in regard to the
state OF the treasury cash balance are
based upon the assumption that receipts
during the remainder of the fiscal year
VIII equal expenditure. Last year the |
part of the year to July / |
showed q surplus of about 70 millions
but this surplus promises to be wiped |
out by the increased expenses and by |
luc IdlllHS OIL OIL =rocclpC6 as Cne result |
Of relaxation In business activity. The |
payments for Panama canal construc- |
ton go into ordinary expenses under
the head of public works notwithstand- |
Ing the funds for meeting them are OBJ |
tanned by special bond issues. From |
present Indications however, the treas |
ury will not only have ample cash at |
during the spring but it is |
believed by bankers that currency FAM |
inc of the moment will be turned into |
q glut which only foresight on the part |
Of the treasury will prevent from de- |
into unnecessary imitation.