The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-09
SALE
Of CANAL BONDS
Subject of Conference Between
Secretary CortelyOu and
New York Bankers.
MIGHT HELP TO LIFT CLOUD
INCREASE IN THE GERMAN
BANK RATE.

New York, Nov. S.-The leading New
York banks are exerting themselves ac-
lively today to meet the demands of
their country correspondents and de-
positors for currency. They declare
that the suggestions made from sew
eral western sources that they are not
meeting legitimate demands for cur
rency from the west are entirely UNI
founded, and that they are, on the con-
trary, taking every practicable measure
to aid the west and south. One of these
large banks. with several thousand cor
respondents, has depleted its reserve
by about & quarter during the last few
weeks to supply currency where it is
most needed. and has made large ship
ments to banks in San Antonio, Cal
weston, Memphis, Mobile, Atlanta and
other southern points.
Reserves Depleted.
The country banks have been al
lowed to draw down their balances to
a point which affords in many cases
hardly enough to meet the drafts sold
in the primary course of business. They
have brought paper for rediscount to
their New York correspondents in
large amounts, and the principal diff
Guilty of the New York banks has come
from the demand for currency to be
shipped against the balance created by
these rediscounts. AS the rediscounts
have been in the nature of an accom-
mediation and have not brought a cent
of currency to the discounting banks,
they do not feel that they should be
called upon to supply currency in large
amounts under existing conditions.
\ Send About One-HaIf.
The best possible judgment is used
in meeting these country demands for
currency. II is not usual except in
special cases to ship all that is asked
for, but a portion of what is asked for.
ranging around one-half, is usually
shipped, the proportion varying accord
ing to the cash strength of the bank
calling for additional currency or the
supply demand for legitimate purposes.
Special favor Is shown to the small in
terror banks where there is no clearing
house, because it is realized that they
are not In a position to count upon CO.
operation and the use of clearing house
certificates, as in the case of communi-
ties having a number of strong insti-
buttons.
Cotton Movement Checked.
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 immense
volume of business accommodating at
southern points. The grain shipments
are in better shape, owing to the gold
secured by the banks of Minneapolis
and st. Paul, and arrangements for
paying cash in New York on grain bills.
The New York banks feel bound to re-
tain a certain portion of reserve to
guard against possible contingency. be-
cause they fulfill in substance the func-
ton which is fulfilled in London by the
Bank of England, in Paris by the Bank
of France, as the ultimate resource in
emergency.
Gold From Europe.
The aid which is being rendeAed to
the situation is indicated by the fact
that the total enga gements of gold
have now reached $40, 900, 900. The to-
tai was materially increased today by
the announcement of several purchases
which had not heretofore been made
public. OF the amount engaged the
sum of sci 81, 900 has already arrived,
including $12,366, $50. which was laid
down from the Lusitania this morning.
This gold will afford the basis of near
" $500, 000, 900 in loans, and will ma
terially assist the New York banks in
their efforts to meet the pressure for
currency throughout the country.
The fact that practically $50, 000. 900
in currency disappeared from the New
York banks within a week. as indicat-
ed by the last bank statement, is con-
sidered sufficient evidence that the
New York banks are doing their best
to meet the demands upon them.
Heavy Loss In Cash.
The total drain of last week is COM
puted upon the basis of an aeaEal loss
i'm cash OF about $50 0o0, 900 in face of
the fact that $4,000, 900 of public money
had been poured into the New York
banks. 1t is not possible to determine
what proportion of this $60. 900, 900 went
west and what proportion went into
boards in New York. 1t is estimated
in some quarters that about half of
the amount was shipped to western
banks, but other bankers put the pro-
portion somewhat lower, leaving the
balance to be accounted for by hoard
ing.
One of the measures which has been
a subject of some consultation between
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