Troy weekly news. (Troy, Idaho) 1897-1933, 1907-12-13
BANKSGETTINGCASH
LAST STATEMENT SHOWS ONE
And HALF BILLION In GOLD.
Events in Financial World Show Grad
uaI Return of Confidence and Restor-
ing Of Normal Conditions in the
Banks-oreat Increase in Gold to
observation-disclosures Bonds.

New York, Dec. 10.-The events OF
the last week in the financial world
have been such as usually mark the
gradual return of confidence and the
restoration OF normal conditions in the
banks The decision of the secretary
of the treasury to issue only about
$40,000,0 900 of the $4,000, 900 in new
securities which he expressed a will
ingness to issue if conditions required:
the disclosure of unusually strong re-
serves by country banks reporting to
the comptroller OF the treasury; the
decline in the currency premium, and
the improvement in the New York
bank statement have all been features
of the week which have tended toward
stability and reinsurance.
The action of the secretary of the
treasury in limiting the issues Of Sc
curities was a part OF the original plan
recommended to him to meet the stu
alton by resolute and adequate meas
ure, but to carry the execution of the
measure no further than circumstances !
required.
The result Of limiting the issue of
the Panama 2 per cent bonds to $685.
100000 and the oneyear treasury GER
tihcates to about $4,000 900 will be to
considerably simplify the problem of
the treasury management and money
market conditions during the spring.
1t is anticipated by tar-sighted bankers
here that there will be plethora of
money soon instead of dearth and
that it will be necessary to reduce in
some way the large volume of currency
brought into use during the crisis.
The Increase in money in circulation
outside the treasury, as shown by the
monthly statement of the treasury de-
partment for November, was $131.S72.-
SS7. OF this amount the increase in
gold in the country is computed at
about $72,OOO,O00, including domestic
production as well as importations
from abroad. The other principal form {
Of increase is in bank circulation. in
which an increase of $7.533.521 was oh :
Lained by the disbursement of bank
notes held in the treasury, and S46.- G
25I1SO was obtained by actual in 4
crease in the notes issued by the CON g
roller and outstanding. /
There have been fears in some quar- +
-ers that if anything approximating
SlOO,OOO,O00 in new bank notes were q
ssued upon the securities of the one h
year certificates the result in initiation {
would be to hold gold in large amounts
iiter the credits issued by the crop A
movement were exhausted. This dan
ger Will be reduced to a minimum bv v
he relatively small issues made by the
reasury. and If small amounts in gold 3
should be exported IT is felt that they
'ould be spared. in view of the large Z
'oid resources in the country to which n
resident Roosevelt called attention Il
n announcing the new loans. ID
The total gold in the country re- NJ
ported by the last treasury statement d
$l561, 714.719, which is equal 10 go
more than 80 per cent of the total S
money In circulation. Some further 81
Increase in bank circulation is expect- tc
ID here upon the Panama bonds and OF
he treasury certificates, but it is be- bI
leVed that the bonds will be deposited
many cases as security for the pub je
Ic money which has been left with the b,
anks and will not be employed as e,
asis for circulation until the one-year SC
eruhcates are Cancelled in the spring. a,
bl