The Montgomery advertiser., 1907-11-09
SUPPLYING
 CURRENCY New Yo Banks Meet M Demands. AIDs WEST AND SOUTH Snors of Selfish Policy Bitterly
 Denied. Country Banks Allowed to Draw Their Balances Down as Close as Goa ditions win rermit--A
 Flood of Gold.

New York. Nov. s.--The leading New York banks were exerting themselves actively today to meet the demands of their country correspondents and de- positors for currency. They declare that the suggestions made from sev- eral Western sources that they are not meeting legitimate demands are un- founded and that they are, on the con- trary. taking every practicable meas ure to aid the West and South. One of these large banks. with several thousand correspondents. has depleted It's reserve by about a quarter during the last few weeks, to suply currency where 1t is most needed and has made large shipments to banks in San An- tonic. Galveston, Memphis. Mobile, At lanta and other Southern points. "a
 The country banks have been allowed to draw down their balances to point which affords in many cases hardly more than enough to meet the drafts sold in the ordinary course of busi- ness. They have brought paper for re- discount to their Now. Y ork, oorresuon- dents in large amounts and the prin- cipal difficulty of the New York banks has come from the demand for curren. cy to be shipped against the balance created by these .re-discounts.
 As these re-uiscounts have been ac- commodations and have not brouaht a cent or currency to the dIscountfnR banks. they do not feel that they should be called upon to supply the currency in small amounts under such conditions. It is not usual, except in special cases. to ship all that Is asked but about ole-haif is usually shipped the proportion varying according to the cash strength. of the bank calling tor coin or as the demand is for legiti- mate purposes.
 Small ones First.
 Special favor is shown to the small interior banks where there is no clear ing house, because 1t Is realized that they are not in g position to count upon cooperation and the use of clearing house certificates, as in the case of communities having number of strong institutions.
 1t Is admitted that the cotton nioye- ment is seriously checked by Che lack of small bills and silver to pay the small growers and by the inability of the Southern banks to handle the i'm fnense volume of business accumulat- ing at Southern points.
 The grain shipments are In better shape, owing to the gold secured by the banks of Minneapolis and St. Paul and arrangements for paying cash in New York on grain bills. The, New York banks feel bound to retain a cer- tain proportion, of reserve to guard against possible contingency because they fulfill in substance the function which is fulfilled in London by the Bank ,of England and in Paris by the Bank of France, as the ultimate re- sources in emergency.
 Flood of Gold
 The aid that is being rendered to the situation Is indicated by the fact that The. total. engagements of gold nave now reached $4O.000.OOO The total was materially increaseds today by the announcemnt of several pur- chases which had not heretofore been made public Of the amount engaged $2l.31l.Q00 has already arrived, in- cluding $12.361,150 brought by the Lusitanis this morning.
 This gold will afford the basis of nearly $20.0oo,O00 in loans and will materially assist the New York banks efforts, to meet the pressure for cur rency. The fact that practically .Se0.- 100000 in currency disappeared from the New York banks within a week as indicated by the last bank state ment, is considered sufficient evidence that New York is doinA its best. The total drain of last week Is computed on the basis of an actual loss in cash of about '$30.ooo.000. in face of the fact that $30.000.000 of public money had been poured into the New York banks. It Is not possible to determine what of this S60, ,OOO, 900 went West and what proportion went into hoards in New York. It Is estimated in some quarters that about half of the amount was shipped to Western banks.
 The treasury has rominally an avail able cash balance of about S17, 900 900 but this does not indicate the actual cash in the general treasury fund.
 The amount of cash on hand yester- day was S119.2s3.934 but against this are charged a number of demand liabilities like outstanding checks. "the National bank note redemption fund and balances of disbursing officers. The latter item alone stood for Sss 2O6.S97, but 1t has ebeen materially re- duced by skillful bookkeeping at the treasury in order to release cash with out creating an apparent deficit