Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1907-12-05
BANKS Get IT ALL.
No Treasury Certificates VIII Be
Awarded to individuals by
the Secretary
MONEY CRISIS NEARLY OVER
II IL Understood That Only About
Sss,oO0,ooo Will 30 Issued
All to Secure Bank
Notes.

Washington, Nov. 29.-The an
nouncement by Secretary Cortelyou
Wednesday night that further sub
scriptions to the one-year treasury
certificates would not be received Is
regarded here as indicating that the
secretary considers the crisis In the
money market to be practically over.
oficial figures have not yet been
given out at the treasury OF the
amount Of the certificates allotted,
nor has 1t been stated whether furth-
er allotments would be made for SUD
scriptions already received. Tne
amount Of the allotments made, how
ever. ia to be about $35,000,000, and
this is probably the limit unless
strong reasons are presented from
banks which have already made sub
scriptions why allotments should be
made to them. All individual sub.
scriptions having been rejected 1t IS
anticipated that nearly the whole OF
the $35.O0O,OOO allotted will be used
to secure new issues Of bank notes.
As these Issues will be retired within
less than a year, they will not con-
stitute a permanent imitation OF the
bank note circulation. H
The effect Of the new loans upon
the future Of the treasury resources
and of the money market is already
receiving attention at the treasury
and in banking circles. From present
sources Of information the amount
nominally added to the cash balance
OF the treasury will be about $S5,OOO,-
900 of which $5O,OOO,O0O viii represent
the 2 per cent Panama bonds and
sS5 900, 900 will represent the one-year
certificates which have been allotted.
It is not only considered highly de-
sirable to reduce deposits In the
banks as soon as the money market
conditions permit, but It is believed
that there will be little difficulty in
doing so. II the treasury can re-
duce these deposits to the neighbor-
hood Of 5000, 100000 in the course OF
the spring, It will then have at COM
mand about $1O0,OOO,OOO as a working
balance, from which deposits could be
made from time to time to aid In the
crop movement in the autumn, II they
were required. The history Of pre-
vious crislses has shown that money
tends to accumulate rapidly in the
banks after the worst Of crisis Is
over. Since August government de-
posits have risen by $67,OOO,000, gold
has poured into New York to the
amount of about $S5,OOO,OOO, and bank
note circulation has been increased
by approximately $40,OO0,OO0. Thus
from various sources the banks have
had at command, although not at any
one time, $267.O0O,0O0 above their
capital reserves a year ago. This
amount will be still further increased
by the deposit Of $71,0OO,OOO from the
proceeds Of the new loans. From the
standpoint of circulation, there will
be an increase whose maximum limit
would be $S5, 100000 II all the new Sc
curities were used to secure bank
note circulation. Various causes are
likely to reduce this maximum very
considerably, but 1t would not be sur
prising II s6O,OOO,OOO in new circula-
ton were taken out In the next two
weeks, after the allotment Of the new
securities. OF the total new money,
so to speak, aggregating $500, 900
thus put at the command Of the
banks within year, not all repre-
sents positive addition to the cir
culatlon, since It has passed through
the hands Of the banks at different
times and much Of it was already in
existence. The net increases in cir.
culatIon, however, will not be less
than 5000, 100000, and this, 1t is be-
lieved by bankers will be redundant
and unnecessary by sprinR.