Los Angeles herald., 1907-11-18
ADMINISTRATION AIDS
EUROPEAN BORROWING

| BY Associated Press
| NEW YORK, Nov. 17.-Another eventful
week In the financial world closed Satu"-
DAY, with conditions in New York greatly
| improved. Even with the arrival of less
| than half the gold which has been cu
gagged. the figures of the bank statement
no longer show the sensational losses of
| the previous two weeks
| Gold engagements made Friday amount
| ing, of themselves, to about 81, 900, 900.
| brought up the total engaged thus Gar
| for America to S64, 900 900, and of this
amount 1t is estimated that S33000.OOO has
already been laid down in New York Or
the other American points for which it
was destined.
The premium on currency has practically
| the effect of a premium on gold and pre-
notes gold imports under conditions of
foreign exchange, where they would not
occur If currency and bank credits we've
at par In this respect the necessities of
the situation have made the premium
effective in promoting the importation OF
gold but the premium declined during
the week. and it is believed by leading
bankers that it will disappear within the
next week or ten days If nothing unusual
occurs.
Reports from, interior points indicate
that the scarcity of currency is being
overcome and that in some cases there
IL 1909 uot VI Sltdl Hle ilpuoN tti tllNitSS'
Negotiations May Cease
If favorable conditions continue the
negotiations for obtaining gold in large
amounts directly from the Bank pf
France, with the approval of the govern
ment of the United States, will not have
to be renewed, These negotia tions have
brought into relief the fact that the New
York market has no central banking
power like the Bank of France or the
Bank of England. with which negotiations
on behalf of a foreign bank can be car
ried on.
The negotiations reported from Paris
derive a picturesque feature from the as
surance that the United States govern.
ment would be gratified if the arrange.
ment were made. It is not customary for
our government to openly promote through
diplomatic channels any business ente..-
prises, but 1t is always considered good
diplomatic usage for the American am
hassador or minister to aid Americans of
standing by informal introductions with.
out acting in his official capacity.
The action taken in the present case,
undoubtedly with the consent of Secretary
Root, apparently did not go essentially
beyond this, although it may have been
conveyed in a slightly more formal man
ner
European governments, however, hesi-
tate less to act promptly in behalf of the
financial and business interests of the
country when they see an opportunity to
render service.
The issue of bonds for the construction
of the Panama canal would aid the
money market materially If payment for
the bonds were accepted in checks and
the amount paid left on deposit with tho
banks making the purchases. The total
new circulation issued during November,
as reported by Comptroller Ridgely, Is
so, 500. This amount could probably
be doubled without difficulty if a consider
able block of bonds were offered for sale.
1t is not believed here that the bonds
would prove an acceptable investment 10
anyone but national banks, because of
the low rate of interest
The appointment by Governor Hughes
OF committee of bankers to revise the
banking laws of the state probably will
result in adjusting the relations of the
trust companies and state banks to the
national banks of the city in such way
as to give mutual support.
The gold supply here has increased by
S11 100000 by importations arriving today.
The steamer Kaiser Wilhelm II of the
North German Lloyd line, which arrived
from Bremen. Southampton and Cher
bourg, brought $S,0O0000 in eagles and
double eagles, while the Cunarder Ca
ronia, from Liverpool and Queenstown,
brought specie to the amount of SO, 900.