Watauga Democrat. [volume] (Boone, Watauga County, N.C.) 1888-current, 1907-11-14
WASHINGTON LETTER.
From Our Regular Correspondent.

From Our Regular Correspondent.
Secretary Cortelyou's plan for
relieving the financial stringency
aud putting more money into cir
cnltion seems to be meeting with
success and is relieving the sup
port aud cooperation of t h e
banks. Thegovernment has made
all the deposits OF cash in the ma
tional banks that it is felt safe
for the Treasury to make at this
time, and as there is more mon
ey needed to carry on the busi-
ness OF the country, the Secreta-
~ OF the Treasury urged that
the national banks should issue
additional note circulation up to
the limit allowed them by the
present law. Hardly any Of the
banks have availed themselves
of. this privilege to the full ex-
tent, and some not at all. The
note issue has to be based upon
government bonds OF this charhc-
ter deposited as security Of de-
posits of government funds, and
for such deposits the Treasury
will take approved railroad and
municipal bonds, so that by shift
ting the government bonds over
as security for note circulation,
the banks could all issue m O r e
money and help the cash situa-
tion considerably. There is now
in the Treasury about $167, ,000,-
600 worth Of bank notes t h a t
could thus be issued. The total
amount of money that could be
put into circulation BY this means
would be nearer $780, 900.
In the first forty-elsht hours
after the suggestion had bee n
made to the banks there were re-
sponses of q favorable tenor,
pledging note issues all the way
from $4,000 up to $4,000, 900
1t is said that one bank in New
York alone could issue if it wish.
led, $4,000, 900 of note circula.
tion. With this additional mon
ley out. the cash tension would
be relieved and there would be
much more money available for
crop movement and this in turn
would bring more money in re.
turn and would bring more mon
ey from abroad, increasing oul
foreign trade balance and easing
foreign exchange.
The Treasury Department i
decidedly pleased with the for
eisn gold outlook as it is. There
has been q total oi $4,000, ,00C
in gold engaged abroad and the
trade balance with Europe will
increase when the wheat and cot.
ton crops move abroad. Govern
or Frantz, of Oklahoma, had 6
talk with the Secretary of t h
Treasury while he was here and
he says that there is q millioI
bale crop of Gotten 10 he movet
, from Oklahoma besides about
35, 900, 900 bushels of wheat
, The furry in New York did nor
of conre affect the material pros
perity of that immediate par
of the country, but like so man.
other agricultural sections, tn
scarcity of ready money and tn
contraction of credit clogged tn
R wheels of commerce Just whel
they should have been movin.
q the most rapidly.
al There is a good deal of quie
!, speculation outside the inner O
fetal circle in Washington as +
! the meaning OF Secretary Taft
changes OF plan with regard t
his visit to Berlin. He is maxim
the grand tour with q ,engeane
and, being an American Cabine
officer, when he calls at q fOreig
capital and sees the sovereign
is a little difficult to make it ar
;, pear that the call is purely pc
: = sonal instead ofofficial. So Ion
k as he was in the Philippines !
y was there in his official capacit.
O But when he got outside of Amt