The Birmingham age-herald., 1907-11-04
Engagements for Gold |npoTta- tIons Reach NtighbsThood
 of $3O,OOO,OOO
BANK NOTE CIRCULATION
 MAY ALSO BE INCREASED
Government Bonds Are Made Avail able As Security for Additional Bank Notes-Congress
 May Act Soon.

New York, November 3-Last week was given over to the work of rehabilitation of financial conditions, and much progress was made, although there remained many elements of disorder in the situation.
 This was incitable from the shock of the preceding weeks events in New York. The range of the disturbance was limited, however.
 The engagements for gold importations have reached the neighborsiood of $3O0O0 . 900, and this week this broad stream of re- plenishment of the reserve fund will flow into New York banks. The feeling that this supply was en route has done much to fortify confidence, but the actual re- viving effect on banking and money op- eratioDs awaits the arrival of the gold. Meantime the example set by New York in the adoption of clearing house certi6- cates for the payment of balances be- tween the banks has been followed by the great money centers of the country, and has safeguarded the banks from the strain induced by the shock sent through the banking fabric.
 Further Relief.
 Further relief is looked for from the ia cilties extended by the comptroller of the currency for an increase in bank note cir cuIation. by allowing the substitution of municipal bonds for the government bonds held as collateral for governmen | deposits with the banks.
 The government bonds are made avail able as security to take out additional bank notes, and this will afford increased resources for supplying the urgent re- qurements for currency.
 The conditions that have had to be met in the recent crisis have given a strong impetus to the movement for providing increased bank currency, and is expected 10 induce early action by Congress to au- thorize new forms of bank note issues
 In another direction it is practically cer- tain that measures of correction will be adopted for the trust companies in New York, which are now seen to have proved the weak link in the financial chain.
 Here again the solvency of one institu- ton did not avail to meet sudden de- mands of depositors without recourse to the banks for assistance, the assistance thus rendered proving the strain that pre- cipitated the crisis. The clearing house banks for several years have voiced their discontent with the trust companies posi- tion, which was due to the great growth of these institutions and their undertak- ing of purely banking functions in the ac- ceptance of large deposits subject to check and to payment without obligations to maintain cash reserves in the propor- tion enforced on the banks.
 Leads to Withdrawal.
 Efforts of banks to coerce the trust companies i'll this regard led to the with drawal several years ago Of most of them from the privilege of clearing through the banks. Under the operation of last year S New York statute. the trust companies had been obliged to accumulate a reserve of 15 per cent of their deposits, but of this only per cent was allowed to remain on deposit with the banks where it fig nred, of course, in the reserve of those institutions; also that the per cent was allowed to be invested in designated se- curities. The enforcement of additional reserve requirements upon the trust coni- panies is expected to result d conse- auence of present experiences.
 In the stock market the disturbed finan- eial condition naturally found some re- Election and there was some clearing away of wreckage. Operations were hampered bv the destruction to the working of the machinery of the money and change mar kets Tn spite of these obstacles how ever, there was reported to be going on blying for cash and for investment on seale such as is not recalled by the oldest observers.