New-York tribune., 1907-11-01
WANT MORE CURRENCY.
GREATEST PRESENT NEED.
FinancierS Looking to Europe for
Still Greater Relief.

ottN NAfNNtSf
With the subsistence of the panic in this city
and the dwindling in Importance of the per-
sistent various banking institutions. at
tention is becoming centred the currency
situation. Owing TO the very extensive hoard
ing of cash by depositors. who their timidity
temporarily distrustfuI of all banks. the
available supply of currency has become seri-
Ously lessened, the banks themselves have
been obliged measure Of safety to keep
themselves well stocked with cash in these un-
settled times and the trust companies have for
the present virtually ceased to make any cash
payments while the savings banks are, by re-
quiring q notice of at least thirty days to be
given by depositors desiring to draw out funds.
also now not paying out any cash.
The action of the New York Clearing House
Association IN issuing loan certificates. with the
object of conserving the cash resources Of its
member banks. has been followed by the as
sociations of many other cities. with the result
that there is great scarcity of currency in thoss
cities also. In Philadelphia. for example cur
rency is at 2 per cent premium: and from the
harvest fields Of the Northwest is coming an /
urgent demand which at present cannot DO I
filled.
MORE GOLD ENGAGED.
One of the consequences of a premium being
bid for currency may be that it viii be possible
amount of the premium than those at which it
would otherwise be possible prohtably to bring
in the metal Two engagements were made yes
terday by local banking houses one Of ST. 900 600
by Heidelbach, Ickelheinler & Co. and one OF
100000 by Lazard Freres, and two Chicago
banks arranged for importing $1.50O.O0O. With
the arrival of the gold already engaged aggre-
eating nearly S25.0OO0O0. the available supply OF
currency will within a few days be heavily in
I nd even larger increa 40 fS Dror,iua.1
/ through the general concurrence of the national
banks in the suggestion of the Controller OF the
Currency that they take out additional circuIa-
/ tiOn.
/ 1t has been suggested that the savings banks
would both improve the general situation and
increase their cash stores by selling TO the na-
/ tional banks their holdings of United States
bonds, to be used by the banks as a basis for
| additional circulation
/ The S3o,O0O.OoO new per cent New York Citv
revenue bonds are acceptable to the Controller.
/ of the Currency as collateral against government
/ deposits in depositary banks. TO replace United
States bonds now serving as such collateral. and
/ a large proportion of the part of the issue not
placed abroad viii probably be so employed -
PAYRoLLs NOT THREATENED.
| The fears recently expressed that large busi<
ness concerns would not be able to obtain cur
rency with which meet their weekly OF month
\ " payrolIs seem unlikely 70 be realized Il is
...s s,r.rcssed ralie .aa lacsI ba lspz:
/ institutions. including trust companies which
latter are now making payments by certified
checks payable through the Clearing House 10
| furnish cash TO their customers fer meeting
/ their pavroIIs Some concerns, however, VIII
nav their employees partly in cash and rarity IN
/ checks
ON the stock Exchange prices broke, then rail-
lied then broke again, the principal issues clos
ing rather lower than on Wednesday can
| money opened at % per cent. at which rate.
/ most OF the renewals of the day were made. and
/ old not 20 higher than - per cent. Tecedin5s
| in the late afternoon to 8 per cent. with
/ per cent the rate at the close. The afternoon
| weakness was accompanied by reports that one
/ or more houses which had been obliged to re-
| sort to heavy liquidation were in trouble. but
! these rumors were rather lacking in definite
| ness The policy of making call loans at the
low levels Of yesterday afternoon is felt BY Lead
/ ing bankers TO be unsafe one under the
| present money conditions. and movement ls
| understood to be under way 10 secure an agree
| rnent among the banks to loan no further funds
/ on call on the Stock Exchange at less than n
/ per cent during the next few days The feature
| of the stock market yesterday. as for several
| davs preceding, was. the extremely large buying
of stock in odd lots. for cash.
PREMATURE RUMORs
Reports yesterday that various trust conpa-
nies we're already in negotiation with the Clear
| ing House Association with view TO their ad-
mission as members are understood TO be pre-
| mature but it is entirely probable that within
few weeks many of the strong trust COM
| panies will become members OF the Clearing
House the opinion being held in the best quar-
| ters that an agreement will be reached under
which the trust companies will maintain
serve approximating that required to be main
| tanned by the national and state banks at pres
| ent constituting the Clearing House Assoeia-
ton
| Following the precedent established by il in
| 1888. the Clearing House committee has decided
that while Clearing House loan certificates are
| outstanding no detailed statement of the iudi-
viduaI condition of the Clearing House banks
shall be made. II is the custom now each week
to announce the total general condition of the
hanks. together with a detailed account of the
standing of each The Clearing House commit
tee has not decided whether or not. while the
certificates are outstanding it will announce the
total general figures of the banks condition
During the pancky times Of 1898 the general
figures were announced weekly
PLAN OF CURRENCY REFORM
The present scarcity Of currency and the re-
course which has been had to the national bank