Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-29

national banks by the statement Of
August 22. 1907, having reached x53l-
s07, T05. on August -. 1897. the
banks had increased their specie hold
ings by S66. see, zoe. since Novem her
~. 1906. they had increased their le-
gal tender holdings from $172.27S.-
SS7 To $lT0.hl5.7S2. They had thus
prepared for the storm TO the extent
OF about S15.000. coo since August
the government deposits have arisen
by $6T.0O0. 600. gold has poured into
New York to the amount of about
SIS, 100000. and bank note circula-
tion has been Increased BY approx
mately $4,000. zoe. Thus from vari-
Gus sources the banks have at their
command. although not at any one
time. S267, 600. 00o above the capital
reserves year ago. This amount VIII
be still further increased by the de-
posit Of S71 coo, ,000 from the proceeds
Of the lew loans.
From the standpoint of circulation
there viii also be an increase whose
maximum limit would be $4,000. coo
If all the new securities were used to
secure bank note circulation. Vari-
Gus causes are likely To reduce this
maximum very considerably. but II
would not be surprising II sixty mill
lions In new circulation were taken out
In the next week after the allotment
OF new securities. OF the total new
money, so 10 speak. aggregating $500
100000. thus put at the command Of
the banks within year not all OF Il
represents a positive addition to the
circulation, since some of It has
passed through the hands OF the hanks
at different times and much Of It was
already In existence. The net in
crease in circulation will not be less
than S2O0. 000 600. and this t Is be-
lieved by bankers, viii be redundant
and unnecessary by spring The poll
icy of the treasury. therefore. In pro-
Viding for the redemption ~ the one
year certificates within a shorter term
than one year viii involve the elimi-
nation OF bank note circulation based
upon these certificates and consider
able withdrawal of cash from the
banks into the treasury,
The fact that the limit OF nine mill
lions per month imposed upon the re-
demption Of bank note circulation
does not apply 10 the notes based upon
securities which have been called Ia
for redemption, removes any obstacle
to the prompt retirement OF extensive
bank note issues BY the payment of
lawful money into the treasury as soon
as the securities are called In and paid.
me estimates made In regard To the
state OF the treasury cash balance are
based upon the assumption that re-
ceipts during the remainder of the
fiscal year will equal expenditures
Last year the balance showed "a sur
plus of about $4,000 900. but this sur
plus promises TO be pretty nearly
wiped out by the Increase of eXpendi-
lures and by the falling Off of receipts
as the result OF relaxation In business
activity. The payments for Panama
canal construction go into ordinary ex-
penditures under the head of public
works, Notwithstanding the funds for
meeting them are obtained by special
bond issues, From present indications.
however, ahe treasury Will not only
have ample cash at commando during
the spring, but 1t is believed by bank
ers that the currency famine will be
turned into glut which only foresight
on the part of the treasury viii pre-
vent from developing into unnecessary
Imitation.