The news-democrat. (Providence, R.I.) 1906-1909, 1907-11-29

NANnlNklNNt
,he currency viii probably be hurried
through congress earlier than was cN'
pected. 4. a. atd to
head OF possible opposition on the part OF
Charles ~ Fowler. chairman OF the
house committee on banking ana cur
rency. , a.
The idea is 20 rush a bill through TIC
house during the first two weeks OF the
session before the committees are "P
pointed ,..5 90
The measure will not be referred 10
the banking and currency committee az
ali. but will be brought up under a reSo-
luton from the committee on iuies
which will be appointed AT once anu
which will be the general master alu hl p
bitter OF legislation. until the pther Sonl-
mittees are appointed just peioIe '0
Mr. Fowler will be permitted to hold
his committee place, but he VIII De 80
pocketed by the house organization a.
10 be powerleSs 10 block the way OF ths
measure which receives the support OF
the administration.
Thai also means that he has already
blasted HIS own hopes OF obtaining az
last the passage OF his own credit cur
rencv bill for which he has been labor,
ing earnestly and persistently ior seNerai
years. .....,.,,,,,.
jn volume during recent weeks, MI row
Ter had begun 10 believe that ne was
coming 90 his own at last
Now IL will be shown TO hlm IN Ile
most pointed manner that the way to get
action In the house is not TO jump over
the traces and fight against the admins
tration.
ALDRICH MAY PRESENT BILL
II is understood that Mr.. Aldrich'
chairman OF the senate finance commit
80 '.a,eo aariv in The week He
will confer with the speaker ana prop
ably with several Of the house ieaueLs'
though not with Mr. Fowler, on the SUP,
feet. and II his bill meets the approval
OF the powers that be on the mouse slue
IL will be introduced there at once.
The committee on rules viii devise a
way for it's immediate consideration ehu
massage After Il Is all over the speaker
will again name Mr.. Fowler chairman OF
the committee on banking and currency
Treasury officials refuse at this tlne lo
make any statement as TO now many OF
the new 4 per cent treasury ceruncateS
have been allotted. but the best estimate
obtainable from all sources Is that lne
amount is approximately $O'e""o OF S'''-
10000 49,, .,,t
cations that have been received at the
ressury department for these certificates
other than from banks desiring circula-
,ion will be returned 10 the senders'
These offers are said TO aggregate very
arge sum.
EFFECT OF NEW LOANS.
The effect of the new loans upon tho fu-
ure OF the treasury resources ana o.
he money market is already receiving at
ention at the treasury and In banking
ircles. From present sources or intor-
nation the amount nominally added %
he cash balance OF the treasury Will De
Ibout sS5,oo0,ooo OF which SoV"'Vo WIN
epresent the per cent Panama bonds
md s35.ooO.oco will represent the one-yeai
certificates which have been allotted.
IL Is not only considered highly desra-
BILE TO reduce deposits In the banks as
soon as money market conditions permf'
but II is believed that there will be httle
iimiculty In doing So IL the treasury
IAN reduce these deposits to the neigh
,orhood OF 500 100000 in the course OF the
lpring II VIII then have at command
about 500, 100000 as working balance
rom which deposits could be made from
ime TO time to aid in the crop movement
n the autumn IL they were required.
Since August government deposits nave
risen by s67 .0oo. 600; gold has poured INTO
New York 10 the amount OF about w.
100 900 and bank note circulation has peen
increased by approximately ADopVN.
rhus from various sources the banks
ave had at command. although not AT
my one time, s261 .Ooo,0oo above their casn
.eseryes a year ago. This amount Will be
itil further increased by the deposit or
a. oO0 900 from the proceeds OF the new
oans. From the standpoint of circulation
here will also be an Increase whose
ma ximum limit would be tS50co.c0 II all
he new securities were used TO secure
,ank note circulation.
Various causes are likely to reduce TINS
maximum very considerably, but IL would
lot be surprising II s6oOoo,0o0 In new cir
ulation were taken out in the next two |
weeks after the allotment OF the new |
ecurities.
500 100000 NEW MONEY"
OF the total new money. so to speak
'ggregating s4oO,o00.oco thus put ut the
command of the banks within year. not
III represents positive addition TO the
circulation. since Il has passed through
he hands OF the banks at different times
md much OF Il was already In existence.
rhe net increase In circulation. however,
Will not be less than $500 0o0. GOO and this
I is believed by bankers. will be redund
ant and unnecessary by spring.
The fact that the limit OF 100000 per
month imposed upon -rnllra4HeHt- !
bank note circulation does not apply TO
notes based upon securities which have
been called for redemption removes any
obstacle TO tho prompt retirement. OF cX-
iensive bank note issues by the payment
II lawful money into the treasury as
soon as the securities are called aud
paid.
The payments for Panama canal con-
struction go into ordinary expenditures
under the head OF public works. notwith-
the fund for meeting them arc
obtained by special bond issues. From
present indications. therefore. the treas
lry will not only have ample cash az
command during the spring, but II is be-
eved by bankers that the currency fam
ne OF the moment will he turned into "A
ylut. which only foresight on the part OF
Ihe treasury will prevent from developing