Daily press. [volume] (Newport News, Va.) 1896-current, 1907-11-09
Officials Of New York Institutions
Say They Are Allowing SOuIb
and West All Cash They Can.
COTTON TRADE SERIOUSLY CHECKED
Caused by the Inability to Pay the
Small Planter in Cash and the In
ability Of the Southern Banks to
Handle the Immense Volume of
Business.
(Dy AssoeIated press.l

(Dy Associated Prcss)
! NEW YORK, Nov. S-Thc leading
New York banks were eNerting Them.
selves actively today To meet the de-
mands OF their country correspondents
ana dcpositors 10 currency. They dc.
clare that the suggestions made iIo
several Western sources that they
aye not meeting legitimate demands
for currency from the West are en-
iiioiy unlounded and that they are
on The contrary, taking every prac.
icablc measure To aid the Western
and Southern banks One OF these
large banks, with several thousand
correspondents. has depleted its re-
serve by about a quart ter during the
last few weeks 10 supply currency
where ii is most needed and has made
large shipments 10 banks In San An
tonic, Galveston, Memphis Mobile.
Atlanta and other Southern points.
The best possible judgment is used
in meeting these country demands
Tor currency. 1t is not usual except in
special cases 10 ship all that is asked
Tor but portion OF what is asked,
ranging around one-hali, is usually
shipped. the proportion varying. ac-
icording TO the cash strength OF the
bank calling for additional currency
or the supply demanded for legitimate
purposes. Special favor is shown to
the small interior banks where there
is no clearing house. because il Is
realized that they are not in no
sltion TO count upon Il corporation
and the use OF clearing mouse certif
icates.
Cotton Movement. Checked.
II is admitted that the cotton move.
ment Is seriously checked by the lack
of small bills and silver TO paw the
small growers and by the inability
OF the Southern banks 10 handle the
immense volume OF business accumu.
lated at Southern points. The grain
shipments are in better shape owing
TO the gold secured by the banks of
Minneapolis. and at St Paul and ar
rangements for paying cash IN New
York on grain bills
The New York banks feel bound
TO retain certain proportion OF re.
serve to guard against possible con-
tinSencX because they fulfil in sub
stance the function which Is fulfilled
in London by the Bank OF England
and In Paris by the Bank of France,
as the ultimate resource in emery
ency. The aid which is being render
ed to the situation is Indicated by the
fact that the total engagements of
gold have now reached S49.250. 900 of
the amount engaged the sum of Sell
900 has already arrived. includ-
Ing Sl2.3Gl. l50. which was laid down
from the l.usitania this morning.
New York Banks Disposed of 100000
This gold will afford the basis OF
nearly s200.000,000 in loans and Will
materially assist this New York hanks
IN their effort To meet the pressure
OF currency throughout the country.
The fact that practically $50 900 900
IN currency disappeared from the New
YORK banks within 4 week as indicated
by the last hank statement. is con.
sidered sufficient evidence that New
York banks are doing their best to
meet the great demands upon them
II is not possible TO determine what
proportion of this $60.UOO 600 went
West and what proportion went into
boards in New York. One of the meas
ureS which has been q subject of
some consultation between Secretary
Cortelyon and leading bankers here.
has been the sale OF a block OF Pan
anna construction bonds, but il is
somewhat doubtful if the offer OF the
bonds 70 the public could be made be.
fore the acuteness of the pressure
for currency has been considerably
dulled.
$12,ooo,ooo Shipped Into interior.
The stream of Europe's gold pour
ing into New York has not been halt.
ed here to meet local demands, but
Is being allowed to flow through the
financial arteries and relieve the
needs OF agricultural and other indus
tries generally Gold importers state
that nearly all of the $2i 100000 which
has already reached here will soon
Ind It's way to every quarter OF the
country. Nearly Sl2,00O.O00 has been
shipped to the interior this week
Gold has been SHIPPED from here Ito
Chicago In such large amounts 1t is
understood In local banking circles.
that the issuance of circulating bank
script in Chicago possibly may NOT
be necessary. The greater part of the
$l2.OO0.000 arriving on the steamer
us'iania and of the 92S.JOO.o0e still