Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-12-02
Reports to Comptroller Expec-
ted to Reveal Large Reserves
Of Coin and Tend to ReStor-
alton of Confidence,
IMMEDIATE RETURN TO
CASH BASIS ASSURED
New York Financiers Discuss
Dangers of Initiation Follow
ing Currency Faminei Cor
gresham Fowler Issues
Warning,
lBy morning Journal Special LEASED wire.

by Morning Journal Special LEASED wlre.i
New York. Dec IA call upon the
national banks for "A renort of their
condition at very recent date is ex-
nectcd by bankers here to come from
the comptroller of the currency this
week. -Four OF the i've calls required
each year by law have already been
made, the last having shown the con-
ditiun Of the national banks on Aug
ust g. It Is possible that the call now
anticipated VIII have an important in
| tluence on the financial situation. IL
Is expected that II viii reveal large re-
serves of cash I'm the country banks,
ana this VIII tend to restore conf
dence among dcpOsitQrs 10 a degree
which will make Il easy To resume
currency payments throughout the
country. The banks, even in normal
times, usually prepare for call by
strengthening their cash, In order 60
make good showing not only TO the
comptroller but to their clients. Their
statements are required by law 10 be
published ia "A local paper and they
are also forwarded to Washington.
where they are compiled by cities and
states. The effect of call for report
nt condition on a iNed date, which Is
usually q few days before the call by
the comptroller, Is 90 enable the bank
| 10 release ca,sh after the cau. with The
! NAlNfA Aftfki AiAAA nAANAiNfi A1il " hVt
| likely, In the natural order OF things,
for about two months In the present
situation, Il Is declared by New York
bank6. the call viii show that hoard
ing is not being done by New York
bankers. as. indeed. their deficiencies
In required reserves already indicate.
but that many Of the interior banks
have reserves running up 70 such pro-
portions as 40 or As per cent of de-
posits The facts viii reach the pub
he for Individual banks through pub
lication locally ana then Will come 70
the public generally through compila-
tiOns made by the comptroller.
II large reserves OF lawful money
in their own vaults are revealed gem
orally by the reports IL viii at once
inspire confidence in the strength OF
the banks and create demand which
they viii not longer be disposed to re-
sist- after sending their reports for
the immediate resumption OF currency
payments.
II h. significant Of the change in
financial opinion that most of the dis
cussion among the fnanciers during
the last week dealt with the evil effect
or state Of initiation OF the cur
rency, into which II was feared the
country might emerge with the pass
ing OF the effects Of irrational dlstrust.
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
currency famine being pursued was
due 10 the plain lesson OF experience
In past crises OF a similar kind. Ia
all of these the first return Of conh-
dence aud the establishment Of
credit have brought condition Of
actual redundancy Of the money mar
ket. a heavy accumulation OF banking
reserves and "a free export movement
nf
gold that has flowed into the United
States IN response TO the urgent re-
and developed by the crisis
d admittedly iu excess Of the normal
requirements Of ihe coming period.
the return flow Of gold Is bound to
have an unfavorahle effect on imam
piai sentiment and in the event of It's
undue stimulation 10y any Imitation Of
paper note issues which would tend
to force out gold. the danger OF
check being Administered 20 the re-
coVcry in commercial activity Is taken
anxious account of Tho decision "t
.hc United States treasury Ni -.fr'
lo limit the allotments ~ 9 per cent
treasury NOTES and to accept no more
bids for lhum Was tho outcome uf this
new uhrfsr OF fhn situation which the
turn toward normal conditions has de-
gelopcd Tho opinion of the treasury
IcuHrfmpnf that The secretary may
.aI Iu thasa certificates before their
lur-NeIr period mas expired ana 10
provide, for the Immediate retire
pruf nf lfI bank notes issued against
.hcu. uutrs another resource for con-
rsciion u the event Of any symptom
'f innatI0n.
In another dirtrtion it is hoped tn
iud urrmaneut and substantial cm-
lluvmtnt for o. large amount ot the
r1ld that has been rushed into the
n'ted States
TEr committee appointed bN Gov
.rnur Hu4nrs fo consider changes In
hr New York state banking laws II
uiaiurI tn REPORT conclusions by the
stn uf urremher
While thr exact terms Co b. oN-
IfffHH ht fhH rruummendatiuuE nf
hIs committee. it is taken Tor granted
hnf th.s wil include drastic reform
Do the rsuuirrments upon trust COM
.anie- fHr holding cash reserves. The
frDuf crisis has demonstrated the in-
deruHcv OF present reserve require
1rufs Tor trust companies doing an
cilNc banking business which most
~ them do. The 9 per cent % cash
% he held iu their own vaults under
he present Jaw. Therefore. "a likely 20
e changed to a substantially higher
giIrr. some advocates faVuring the
un q nor cent now eNacted n mem
ers or the clearing house. u L.
oiuted 0uf aisn that more favorable
lumenf Cor enrcfiuE this reform
aull hardly D. chosen than the ne-
'nd unu believed tp DE- approaching.
ben the haaf1 Inflow of foreign gold