The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-11-09
NEW YORK BANKS
AIDING THE WEST
MANY MILLIONS SENT TO RE.
LIEvE THE NEEDS OF THE
SMALLER INSTITUTIONS.
SITUATION IN CHICAGO
Is merely Matter Of Unlocking The
Coffers--Northweet Richer Than
Ever Before But Money is
f1oarded.

New York, Nov S.--Leading New
York banks were exerting themselve.
actively today to meet the demands
OF country correspondents and depos
tors for currency. They declare sug
gestions made from several western
sources that they are not meeting legi
innate demands for currency from the
west are entirely unfounded and that
they are, on the contrary, taking every
practicable measure to aid the west
and south. One Of these large banks,
with several thousand correspondents,
has depleted it's reserve by about a
quarter during the last few weeks to
supply currency where 1t Is most
needed. The country banks have been
allowed to draw down their balances
to a point which affords in many
cases hardly more than enough to
meet the drafts sold in the ordinary
course OF business They have
brought raper~for rediscount to their
New York correspondents in large
amounts, and the principal difficulty
OF the New York banks has come
from the demand for currency to be
shipped against the balance created
by these rediscounts. AS the redis-
counts have been in the nature Of ac
commodation and have not brought 2
cent OF currency to the discounting
banks. they do not mee that they
sshaiild be called upon To supply cir
rcncy In large amounts under the exfa
listing conditions The best possible
Judgment Is being used in meeting
these country demands for currency
Special favor Is shown to small in
terror banks where there is no clear
ing house, because IT is realized that
they aren OF in a position TO count
upon cooperation and the use OF
clearing house certificates, as in the
case of communities having a number
of strong institutions.
Must Hold Reserve.
New York banks feel bound to re-
tain certain proportion OF their re-
serve to guard against the possible |
stringeney, because they fulfill in sub |
stance the function fulfilled in Lon |
don by the Bank of England and IN
Paris by the Bank of France, as an |
ultimate resource in emergency
The aid being rendered the situa-
ton Is indicated by the actual en-
gagement of gold having now reached
sac. .000000 The total was materially
increased today by the announcement
of several purchases which had not
heretofore been made public. OF the
amount engaged $21.3l1,000 has al
ready arrived. This gold will afford q
basis of nearly s20o.o00,000 in loans
and will materially assist the New
York banks in their efforts to meet
the pressure for currency through
ont the country.
Banks Doing Their Best.
The fact that practically sGO.0ooOO0 l
in currency has disappeared from New
York banks within a week is con :
sidered sufficient evidence that New {
York Banks are doing their best 20
meet demands upon them. 1t is MT
nossible to determine what proper
tion of this $G0,000,00O went west ami
what proportion went into boards b
New York. It is estimated in some
quarters that half the amount was
Skinned to western banks. but other :
bankers put the proportion somewhat
lower leaving a balance to be ae-
counted for by boarding. The treas
ury has nominally an available cash
balance of little less than $l7,000,0Oe,
but tkis does not indicate the actual
cast in the treasury fund. The amount G
of cash on hand yesterday was sll9.- 7
%, e3g. but against this are charged b
a number of demand Liabilities like I
etstanding checks. national bank {
tote redemption fund and balances o
Of disbursing offices. the latter item v
alone stood for sCs.2OG.3s7. but it has q
been materiali reduced by skillful b
book keeping at the treasury In orde- 0
10 release the cash without creating G
an apparent deficit. The amount Of
he disbursing officers balance as re +,
Gently as October 30 was s750s7, ,006.
md the reduction in the amount may
De- considered as having been trans
erred to a general fund for use In
financial emergency.