The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1907-11-12

selves actively today to meet the oe-
mands of their country corTesponp-
ents and the depositors Ior currency.
They declare that the Suggestions
made from several western sources
hat they are not meeting legitimate
demands for currency from the west
are entirely unfounded and that they
are on the contrary, taking every prac-
ticable measure to aid the western aud
southern banks.
One of these large banks with sever
al thousand correspondents, has Ie-
pleted it's reserve by about a quarter
during the last few weeks to supply
currency where it is most needed
and has made large shipments to banks
in San Antonio, Galveston, Memphis.
Mobile, Atlanta, and other southern
points,
The best possibly judgment is used
in. meeting these country demands for
currency.
1t is lot usual except in special cases
to ship all that is asked, but a por-
ton of what is asked, ranging around
one half, is usually shipped, the pro-
portion varying according to the cash
strength Of the bank calling for addi-
tional currency or to supply demands
for legitimate purposes. Special IA
vor is shown to the small interior
banks where there is no clearing
house, because it is realized that they
are not in a position to count upon
cooperation and the use Of the clear
ing house certificates.
1t is admitted that the cotton move
ment is seriously checked by the lack
of small bills and silver to pay the
small growers, and by the inability of
the southern banks to handle the I'M
mense volume Of business accummu-
lating at southern points. The grain
shipments are in better shape owing
~ the gold secured by the bankG OF
Minneapolis, and St. Paul, and arrange
ments for paying cash in New York
on grain bills.
The New York tanks feel Lolnd to
retain a certain proportion of reserve
to guard against possible contingent
cy, because they fulfill in substance
the function which is fulfilled in Lon
doy by the Bank Of England AID III
Paris by the Bank OF France. as the
ultimate resource in emergency.
The aid which is being rendered to
situation is Indicated by the fact that
the total engagements of gold have
o reached $40, $50 900. Of the amount
engaged, the sum Of S21 81 900 has
already arrived, including $123Si $50,
which was aid down from tie Lus-
taHia this morning.
This gold will afford the basis Of
nearly S 200. 600, 900 in loans and
will materially assist the New York
banks in their efforts to meet the
pressure for currency throughout the
country.
The fact that practically $50 coo, 900
in currency disappeared from the New
York banks within a week, as indiuat-
ed by tho last bank statement, is
considered sufficient evidence that
New York banks are doing their best
10 meet the great demands upon
them.
1t is not possible to determine what
proposition of this 5000 0 900 went
west and what proportion went into
boards in New York.
One Of the measures which has been
a subject Of some consultation between
Secretary COrtelyOu and leading bank
ers here, has been the sale of a block
Of Panama construction bonGs. Bit
it is somewhat doubtful if the offer
of, the bonds to the public could be
made before the acuteness of the p1ess
ure for currency has been considera-
bly, dulled.
New York, November S.-The stream
Of Europe's gold flowing into New
York has not been halted here to meet
the local demands but is being allowed
to flow through the financial arteries
Of the United States and relieve the
needs Of agriculture and other indus
tries generally. Gold importers state
that nearly all of the $21 ,000, 900 which
has already reached here will soon
find its way to every quarter of the
country.
Nearly $12, 900 900 has been shipped
to the interior this week. Gold has
been shipped from here to Chicago
in such large quantities, it is under |
stood in local banking circles, that the
issuance of circulating bank scrip in |
Chicago possibly may not be necessary |
The greater part of the ST., O0O, 900 az
irving on the steamer Lusitania and of |
the $685. OO, 900 still to come will he
Immediately expressed to out of town |
banks.
Never In the history of the New
York finance, according to gold im-
porters, has there been SO much money
engaged abroad by out Of town banks