Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-12-10
PASSING OF THE PANIC.

Review of the Situation Indicates Re-
turn to Normal Conditions.
The events of the past week in the
financial world, according to review
Just sent out from the New York office
of the Associated Press, have been
such as usually mark the gradual re-
turn of confidence and the restoration
Of normal conditions in the banks. The
decision of the secretary of the treasury
to issue only about $40,O0O,OOO OF the
$l5O,OOO,O0O in new securities which
he expressed a willingness to issue II
conditions required, the disclosure Of
unusually strong reserves by country
banks reporting to the comptroller or
the currency, the decline in the cur
rency premium and the improvement In
the New York bank statement have all
been features Of the week which have
tended towards stability and reassur-
ance. The action of the secretary of
the treasury, in limiting the issues OF
securities, was part OF the origlnai
plan recommended to him to meet the
situation by a resolute and adequate
measure, but to carry the execution OF
the measure no farther than clrcuh-
stances required.
The results of limiting the issue OF
the Panama per cent bonds to $685.
OO0, 900, and the one-year treasury Ger
tificates to $15,000,0 900 will be to consid-
erably simplify the problem Of treasury
management and money market con-
ditions during the spring. 1t is antic-
ipated by far sighted bankers here
that there will be plethora Of money
soon, instead Of a dearth, and that 1t
will be necessary to reduce In some
way the large volume Of currency
which has been brought into use dur
ing the crisis. The increase in money
in circulation outside the treasury, as
shown by the monthly statement OF the
treasury department for November, was
sl3l,s72,SS7. OF this amount the In
crease in gold in the country Is COM
puted at S72,000,000, including domes-
tic production as we'll as importation
from abroad. The other principal form
of increase is in bank circulation, IN
which an increase Of $7,533.521 was OBJ
tanned by the disbursement Of bank
notes held in the treasury, cash, ana
s46,237,730 was obtained by actual In
crease in the notes issued by the comp
troller and outstanding.
There have been fears in some quar-
ters that If anything approximating
s1OO, 900 900 in new bank notes were is
sued upon the security of the one-year
certificates the spring imitation would
export in large amounts after the cred
its established by the crop movement
were exhausted. This danger VIII De
reduced to a minimum by the relatively
small issue made by the treasury, ana
II small amounts in gold should be
exported 1t is felt that they could De
spared, in view Of the large gold re-
sources in the country, to Whlch Pres-
ident Roosevelt called attention In an
nouncing the new loans. The total gold
in the country reported by the last
treasury statement, Is $l,b6l,l4,7ls,
which Is equal to more than 6O per
cent of the total money In circulation.
Some further increase in bank circula-
ton is expected here upon the Panama
bonds and the treasury certificates, put
II is believed that the bonds will be
deposited in many cases as security Tor
the public money, which has left for
the banks and will not be employed as
a basis for circulation until the one
wear certificates are cancelled In the
spring. when money Withdrawn from
banks by the treasury for the redemp-
ton Of the certificates will release the
bonds and the latter can then be SUD
stituted for the certificates as security
for circulation. II this proves to be the
case, the increase In bank circulation
will not be very great during the next
few months, and may even turn down.
ward as soon as It becomes apparent
that the banks have a large accumula-
ton of cash for which there Is little
demand.
The reports Of the condition Of the
national banks Of December 3, which
are being published in various localitles
and are gradually reaching the comp
troller of the currency, are verifying
the authorizations Of leading bankers set
forth by the Associated. Press a week
ago that large reserves would be dis
closed in the interior banks, that the
disclosures would tend to restore conn
dence, and that the banks would De
willing to release such excess reserves
after making their statements. "A
rough calculation Of the reports OF tne
Chicago banks, including some state
hanks indicates reserves Of nearly 80
per cent. About the same proportion
is reported from New Orleans, and
still higher reserves at smaller places,
where the law only requires ID per cent
including deposits in reserve cities.
The fact that the two failures OF ma
tional banks Of Importance have oc-
Cured during the week without appar-
emily causing any shock to confidence.
even in their own localities. and stlll
less in the financial centres, Is regard
ed here as another favorable indication
of the state Of the financial markets.
The increase Of $4,471,000 In actual
cash in the New York clearinghouse
banks is regarded here as one OF the
symptoms that the currency crisis as
such Is practically over. The reduction
of loans by about $11,S00,000 Is also
considered q favorable indication OF di-
minished pressure. The increase In the
REQUIRED reserve by $6,779,000 reduces
the deficit in New York reserves TO
SAG, PIC, 900, and part Of this Will be
covered by gold yet to arrive.
Not much Is expected among new
York bankers in the way Of currency
legislation by congress at the present
session. The fact that the presidential
election Is approaching, and that there
Is wide diversity Of view as to the
proper form Of new legislation, leads
TO the belief that the subject Will be
only considered, without final action
during the present session. The neces-
sitv of some important measure OF re-
form is quite generally recognized, but
the growth of sentiment for a strong
central bank Is checking In some de-
gree the movement for giving wider
powers Of note issue to the exlstlns