The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-12-02
CREDIT TAKEN
BY ROOSEVELT
Continuation of Money Strin-
genCy Averted by Supreme
: Virtue of the President.
BOND ISSUE GREAT THING
VINDIcATIoN OF ANOTHER NEW
POLICY"
BOND ISSUE GREAT THING

Washington, Dec. 1.-The close of the
past week found a confident feeling pre-
Vailing in banking circles and at the
treasury that the financial situation of
the country would soon resume its nor
mai state. The Intervention of the gov
ernment two weeks ago, by which it was
proposed to issue S150,OOOOOo in new secur-
ties, accomplished the purpose antici-
pated by President Roosevelt and Secre-
tary Cortelyou in demonstrating the abil-
tty OF the treasury to relieve disturbed con-
oltlons. This result having been accom-
pllShed. the actual issue of new securities
VIII be only about half what was pro-
posed. In this respect the present admin
istration departed from the policy pursued
IN 1888, when measures of relief were us
ually adopted only when they became i'm
pefatlye. 1t is felt at the treasury that
the wisdom of the new policy has been
Nindlcated-that it was better to take res
olute and broad measures. even if they
s MSnt .oeyoh9 the immediate needs OF the
sltuatlon. The issues of the Panama
bonds will be for the full S5O,000,OO0 which
was offered but the issues of one-year
treasury certificates viii not much eX-
coed s25,000,000
Fewer New Notes.
1t is probable also that the issues of
new bank note circulation will fall con-
E1derably within some of the earlier esti-
mates because of the abundance of cur
fency which will be available when cur
fency payments are resumed by the banks
and exchanges resume their normal
course Since the Panama bonds will be
held by the treasury in the first instance
as security for the public money which is
paid for them and left on deposit with
the purchasing banks, the bonds are not
expected to be deposited to their entire
amount for new bank note circulation.
They can only be deposited by substitute
ing other classes of bonds as security for
deposits of money. While this would have
been done if the new circulation had been
required it is now expected at the treas
uTy that it will not be done to anything
like the full issue of bonds. If public
money Is withdrawn from the banks in
the spring, the bonds will be released and
would be substituted as security for cir
culation issued against the One-year Ger
tificates. if the latter were then paid off
with interest to the date of payment
Not Yet, But Soon.
The information reaching Secretary Cor
telyOu and Comptroller Ridgely is very
favorable to the resumption of cash pay
ments by the banks as soon as the De-
cember payrolls have been disposed Of 1t
IS not believed that there will be any dis
position on the part of depositors to make
q run for currency. Bankers who have
been in town nave in many cases reported
cash reserves in their institutions much
I'm excess of legal requirements.
Some banks which are not in central
reserve cities are holding cash to as high
a proportion as 40 or 80 per cent of their
sure for currency is diminishing is found
I'm the statement of the New York clearing
house banks on Saturday. with its actual
increase of nearly s2000.000 in cash and its
reduction of the deficit in reserves by
over s.. 100000. If this result has been at
tanned with considerable gold still on the
ocean and not counting in reserves, IL is
expected that the statement of next week
will make a still more favorable showing.
Further Initiation Unnecessary.
With gold imports aggregating $500, coo
including what is on the way; with new
bank note circulation already taken to
the amount of $4,000 600 within the past
month; an additional circulation in sight
10 the amount of perhaps $40 O00,000 MAX
ing a total of new currency of about SlS5.-
100000 within the last few weeks, it is not
believed that il will be necessary to go
much farther in swelling the circulation.
On the contrary, it is anticipated that
money will become drug in the market
within a short time. In the panic of 1893
lawful money reserves stood on July -
1898. at $3.50. 544, $50. which was the low
point shown by the report to the comp
trOller of the currency, but increased by
the date of the statement for Nav T. 1894