Los Angeles herald., 1907-11-03
$50, 900, 900
IN GOLD DUE
FROM ABROAD
MONEY COMING TO AMERICAN
BANKS
sHoRTAeE'oF CURRENCY is THE
CHIEF CAUSE OF ALARM
Governor GiIIett of California Pro.
claims Monday HoIIday--Tues.
day and Wednesday May
Be Added to'List

BY Associated Press.
WASHINGTON, Nov. 2-It was
learned here today from undoubted
sources that President Roosevelt IL
now being urged to call an extra ses-
sion of congress to deal with the fnan-
ciaI situation. The request comes
from and represents the Judgment of
the conservative leaders In the financial
world who have represented the pres-
ent situation as one compelling action
of a character that will eradicate all
ground for suspicion of American in
dustrIaI methods
The president has been assured that
there Will be no opposition to the en-
actmcnt of the necessary laws to carry
out his ideas of federal control of cor
pOrati0ns. These assurances are made
nt this time to avert what has been
represented as the most dangerousf
situation which has confronted the
country during an extended prosperous
period.
BY Associated Press
NEW YORK. Nov. 2.-The financial
week came to close today without any
notable developments. The stock ex-
change was comparatively steady over
the, day with little activity. The runs
upon banking houses seem to be prac-
ferences were held by financiers
The decline in the reserves of the New
York clearing house banks was heavier
than In any recent experience, but will be
largely offset by the arrival of gold next
week.
The apparent loss In the reserve was
about $37 100000, but 900 of this was
Que to the requirement of rs per cent
against an increase in deposits of s2S,-
t.1~ T.. 4 IL
ing house banks apparently represents the
transfer of funds from the institutions
which have been subject to the runsl
The actual loss In cash is about $50 900, 900,
which reduced the reserve on hand to
about $225, 100000, i
The gold engagements increased slight
ly today by orders from Pittsburg and
other points, making the total engage
ment to date s29, 80, 900. If all of these
amounts should go into the reserves Of
the clearing house banks it would prac-
tically restore their supply of cash dur
ing the past week. Even the diversion
cf a part of the amount to other cities
will leave the bulk of the gold arrival to
go into New York banks. and will prob
ably result In an increase of reserve next
week.
Part of the decline in cash in the face
OF heavy deposits of treasury funds has
| pcCn uuc " tHt CdllS VI tuc COuIltIy pdIlhS
for currency. 1t Is believed these have
been pretty largely met, and the amount
| will be not nearly as large during the
coming week.
| Check System General
Reports received from various parts of
| the country indicate that the system OF
meeting pay rolls by checks instead OF in
currency is being largely adopted without
any essential Inconvenience to wage
| earners.
| William A. Nash, president of the Corn
| Exchange bank, and member OF the clear
ing house committee, said in explanation
! CT today's bank statement that the clear
| ing house banks have been taking over
| the loans called by the trust companies,
and this increased the bank loans
Trust Companies Deposit
Mr. Nash added: THE trust companies
have increased their deposits In the banks.
The total deposits have thus been in
creased without any addition to the stock
cf cash, and naturally the percentage of
reserve has fallen. l do not regard this
as significant because the increase of de-
posits by the trust companies is paying,
rot in cash, but in clearing house funds.
1.-THE changes in loans, deposits and
reserve are so much in the nature Of
bookkeeping that they should not affect
the present situation.
1.-The real matter in the bank statement
is the supply of cash. The losses during
the week were not greater than l ex-
pected The shipments to the interior
and the boarding of the currency ac-
count for the losses reported.
'I believe that from now on there will
be an Improvement. The currency will
respond, as it always has. to the tempt
ing that is being offered. The gold on the
way from Europe will begin to flow In
rext week. and with 1t will come fall
hing off In the excitement about cash."