The Mena weekly star., 1907-12-05

Washington. Nov. 30. -The an. nouncement by Secretary Cortelyou Wednesday night that further sub scripuons to the one-year treasury certificates would not be received is regarded here as indicating that the secretary considers the crisis in the money market to be practically over. Official figures have not yet been given out at the treasury of the amount of the certificates allotted
 nor has 1t been stated whether furth- CT allotments would be made for sub scriptions already received. The amount of the allotments made. how ever, is to be about s35, 1000 900, and this is probably the limit unless strong reasons are presented from banks which have already made sub scriptions why allotments should be made to them. All individual sub- scriptions having been rejected, it is anticipated that nearly the whole of the s35,000,000 allotted will be used to secure new issues of bank notes. As these issues will be retired within less, than year, they will not con stitute a permanent imitation of the bank note circulation.
 The effect of the new loans upon the future of the treasury resources and of the money market is already receiving attention at the treasury and in banking circles. From present sources of information the amount nominally added to the cash balance of the treasury will be about S5,000,. 900 of which s5o,Oo0. .OO0 will represent the per cent Panama bonds and $35, 100000 will represent the one-year certificates which have been allotted
 It Is not only considered highly de sirable to reduce deposits in the banks as soon as the money market conditions permit. but 1t is believed that there will be little difficulty in doing so. If the treasury can re duce these deposits to the neighbor- hood of s200, 100000 in the course of the spring, 1t will then have at com. mand about s1O0,000, 900 as a working balance, from which deposits could be made from time to time to aid in the crop movement In the autumn. if they were required. The history of pre- vious crisises has shown that money tends to accumulate rapidly in the banks after the worst of crisis Is over Since August government de- posits have risen by $67,000.0o0. gold has poured into New York to the amount of about $S5.000. 900, and bank note circulation has been increased by approximately $40,000.000. Thus from various sources the banks have had at command, although not at any one time, s2s7.0o0,0o0 above their capital reserves year ago. This amount will be still further increased by the deposit of $71, 100000 from the proceeds of the new loans. From the standpoint of circulation. there will be an increase whose maximum limit would be $s5, ,000, 900 If all the new se- curities were used to secure bank note circulation. Various causes are likely to reduce this maximum very considerably. but 1t would not be sur prising If $eo.000,Ooo in new circula' tion were taken out in the next two weeks, after the allotment of the new securities. Of the total new money. so to speak. aggregating s4oo, 0o.ooo thus put at the command of the banks within year, not all repre- sents a positive addition to the cir culation, since 1t has passed through the hands of the banks at different times and much of 1t was already in existence. The net increases in cir culation, however, will not be less than s2OO, O,ooO, 900, and this, 1t is be- Iieyed by bankers will be redundant and unnecessary by spring.