Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-25
MONEY CRISIS
APPARENTLY
LESSACUTE
BANKERS LOOK FOR
EARLY RESUMPTION
Continued Imports of Gold and
Better Understanding of the
Benefits of Government Bond
Issues Make for Confidence,

Issues Make for Confidence,
ny Morning Journal Special f.eased wire.l
New York. Nov. 24.-The announce
ment before the beginning of last
weeks operations of the government
Offering OF $50.OO0.O00 of Panama
bonds and of 100000. 600 of one
year 3 per cent treasury notes aroused
bright expectations of decisive results
In breaking the currency famine by
the attraction that would be offered To
hoarders of the money Of an absolute
~ secure government obligation dur
ing "A period of dlstrust OF usual In
Vestment facilities The good inilu-
ence OF the measure on sentiment
waned during the week. principally by
reason of the complexities discovered
in the working out OF the program.
Detailed information was not made
public of the amounts being SUBJ
seribed by private capital. on the part
of the banks the preparation To par
tiCipate In the issue We're found to
affect the money and currency mar
kets to some extent and there was
much confusion i'm estimating the
working out Of the effects of the
&
gold from abroad continued In a
steady stream and large additional en-
gagements continued To be made. For
the first time during the present move
ment the Bank OF France furnished
part OF the supplies, the transaction
being BASED on commercial ,ills of ex-
change. The new resource of supply
thus opened up Is considered OF great
Various indications
served TO prove how far the general
banking situation had been strength
ened by the heavy withdrawal from
New York and forwardings Of ineom-
ing gold as Il arrived. Thus the re-
ports OF conditions OF Illinois state
banks in response 70 the call Of the
state auditor showed an increase Of
many millions in cash holdings COM
pared with the previous report IN
August. while outstanding obligations
had been heavily reduced. The Can
adian banks made reports In response
to a similar official cali during the |
week and these made a like showing, |
which proved the large drain from
New York to that destination with an
scaling dOwh of loans |
on call without the dominion largely |
placed i'm New York stock market |
are awaiting the call from the |
United States comptroller of the cur
reucy, the usual period for which is
now passing.
There is growing conviction that re-
sponse TO this call will show the gen
aral banking position 30 fortified by |
the strong current of cash which has
flowed out OF New York and out of
foreign sources that the feeling Of
mutual suspicion and distrust which
has been by far the most potent fac
ors IN thefrecent encouragement. will
quickly die out. A prompt resumption
IF normal banking conditions will be
oOked for as consequence. The |
weekly bank statement of the New |
York clearing house banks was her
,lded as decisive of the definite turn |
oward betterment in the New York /
banking situation. Loans contracted |
or the first time since that crisis de-
'eloped and the small cash decrease
vas evidenced that 3 the concealed |
Train on the banks has come To an
nd, the decrease proving less than
vas promised by the known move
nent of money, In spite of the throw
ng out of the computation the Sl8,-
100. 900 gold arrivals on Saturday.
which were belated for a day by a fog
'he stock market was under intermit-
mt pressure last week, which was Sc
ere I'm special stocks ana at intervals
II time. At other times the stock
market showed symptoms Of resiliency
which was slight. however. and at
! !
peraiiuns by professional bears. The
weakness was assigned by general be-
Ief TO a resumption Of liquidation of
kind which was withheld from the
market during its period of demoral-
sation by the powerful influence and
esources OF the Interested parties, but
n condition OF closing after accounts \
nd payments Of indebtedness as soon I
s the market subsidized into more or
erlv conditions II was surmised also
hat the practical subjection Of the
fairs Of New York banks To the cen
-alized control Of the clearing house
uthorlties through its loan commit
se. which Is involved by the issuance
Z clearing house certificates has
rought the loan accounts OF the banks
nder "a scrutiny free from all collat-
raj influence ami impartial interest =
The result has been an
xorcise Of discrimination against some
xistiug accounts which taxed their
quidation on forced terms. Maturity
time loans ON which renewals were
fused was another factor IN the ur
mt selling which appeared IN individ-
N securities both in the stocks and
pnd list. These clearing processes u
ere an inevitable after effect Of the
Irbuient periods which had pre- u
.ded il and such operations are 90 be :
terpreted in the light Of those past }
-ents rather than as a reflection OF a
irrent general conditions. The liquid
ion has been painful by reason Of ~
Ie inadequate demand To absorb 10. !.
NV buying being restricted from the =,
me causes that necessitated the 4.
luidation. the principal being the y
stringenCy OF the money y
arket While the process was a pain y
. one u was effective. nevertheless, Ci
correcting the position. The buying %
swall lots for investment contin- "
"a 70 be a marked feature Of the a'
arkot aud while not sufficient 90 stay "
% downward course Of prices was n
factor IN bringing funds back into M
q channels Of banking operations. W