Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-11-29
CURB THE SUPPLY.
Danger of Too Much Money
VIII be Guarded Against
by CorteIyou.
HIS COURSE is APPROVED
Ninety Per Cent of Panama Bond Mon
ey to Be Left in Banks Making
the Purchase.

Washington, Nov. 29.-The action of
Secretary Cortelyou, in refusing to ac-
cept further subscriptions to the one
year treasury certificates, has been re-
ceived with favor by bankers and
other financial experts.
This action, they say, not only in
dicates that the government thinks the
money crisis is passed, but shows the
officials efforts to prevent the cur
rency famine from turning into a glut,
as was threatened had the full allot-
ment of the emergency issue been
made
The officials have not given out the
amount of the certificates allotted, but
it is thought to have been about $780,
100000. Nearly the whole amount al
lotted will be used to secure new is
sues of bank notes, to be retired with
in year. This will prevent a perma-
nent imitation of the bank note cir
culatiOn.
Cash Gain SS5,OOO,O0O.
The effect of the new loans upon
the future of the treasury resources
anu vi tiC hulhCI ID OH eau
receiving attention. The amount nom
inally added to the cash in the treas
ury will be $S5, 100000 of which $50,
100000 will represent the per cent
Panama bonds and s35,000,00 will rep
resent the. one year certificates. This
amount would increase the present
nominal balance to a little more than
1925 100000. The national banks
however, hold $234,939,5S9 of this
amount, leaving an actual working
balance of $6,463.62S.
The secretary has announced that
80 per cent of the payments for Pan.
anna bonds will be left in the custody
of the national banks purchasing the
bonds, and about rs per cent of the
payments for the one year certificates
will be left with the banks.
The effect of this will be to increase
the amount in banks to s300,00000C
and the working balance to about
ts22,uoo, 600.
Reduction VIII Be Easy.
Secretary Cortelyou plans to retire
$30,000,000 of the yearly certificates
in the spring, thus bringing the de
posits in the banks down to SPIT 500,
600. and the cash balance to $4,000.
900. 1t seems probable, however. thai
money market conditions will be such
that the secretary can call upon the
banks for considerably more cash thar
comes to them in payment for the
treasury certificates which are called
and surrendered.
Bank Exchange Little Improved.
New York, Nov. 29-Dun's review
, tomorrow will say: "a further reduc
ton in bank exchanges reflected +;
smaller volume of payments through
the banks, the total exchanges this
week at all the leading centers in the
United States being s1,5S4,72S, or s..
per cent under the corresponding weel
| in 1906. Only five business days art
included in the week each year. Th'
decrease in bank exchanges is slight.
less than last week.
"This may indicate the turning poin
has been reached. But practically ey
cry city again reports a loss compaI
ed with last year, and at some cite
the loss is quite large, notably Ney
York, Philadelphia, New Orleans an
San Francisco. Kansas City is tn
only exception, and reports SINAI
gain. At some of the central wester
cities the loans were very SMALL
More Gold Bought i'm London.
London, Nov. 29.-The United State
bought 100000 pounds in gold from tn
Bank of England today.