Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-11-09
TO MEET DEMANDS
OF COUNTRY BANKS
New York Houses Doing What
They Can to Satisfy
Them.
DEPICTING THEIR RESOURCES
IN Many Gases Have Been 1nuWca 20
Draw Bolnnccs 70 thc nnn-
ger Point.

New York Soy. s-The icad'rs Sew
York banks are exertng themselves acc
lively today % meet the demands Of
their country correspondents ana de-
positors for currency They declare
that the suggestions made from sev-
oral western sources that tacy ara not
meeting legitimate demands for cure
reucy from the west arc uurey un-
founded. and that taey a. j. Ola thc cone
trary. taking every pucu1ahie measure
To- aid the west aud south. one OF these
large banks, with several thousand core
respondents. las depleted IFS reserve
by about quarter during the last Jew
weeks 10 supply currency where it is
most needed. ana has made large ship
meuts Co banks IN san Antonio. Gall
weston Memphis. Mobile Atlanta ana
other southern points
COUNTRY BANKS.
The country banks have been al-
lowed To- draw down their balances 10
point which affords Boo many cases
hardly enough to meet tne drafts sold
Boz the primary course of business. They
have brought paper Cor rediscount 90
their New York correspondents iu
large amounts. ard the principal aim
Guilty of the Ncw DIRK panAs has come
from the demand for currency 10 be
shipped against the balance created by
these redlscouuts. AS the rediscounJs
nave been in the nature of ana accom-
.I..| .... Al
OF currency 90 tne discOaUuns banks.
tney 40 NOT teei that Juel should be
called upon 10 supply currency iu iarge
amounts uuulr eX4stlug conditions.
The best possible Judgment ~ used
ina meeting these country demands ior
currency DC is not usual except 100
special cases 60 ship all that is asked
tor hut portion ot what Is asked toI,
ranging around oue-halL ls usually
shipped the proportion varying accord
ing 10 the cash strength of the bank
calling for additional currency on ine
supply demand for legitimate purposes.
Special favor ls shown 60 the small In
terror banks where there Is no clearing
house because 90 is realized that they
are NOT 600 ID positions To count upon CO.
operation ana the use of clearing house
cerlGcates. as in tine case of commune
sng number OF strong ins-i-
tuuona
COTTON MOVEMENT CHECKED.
Il Is admitted that the cotton move
meut is seriously checked by the lack
of small bills ANA silver to pay the small
growers ana hy the inaDAIty Of ia
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 hv the banks of Minneapolis
and 81. Paul ana Arrangements for
paying cash In New YORK on grain bills
The New York banks feel bound TO re-
tain a certain portion Of reserve 70
guard against possible contingency. be-
cause they fulnn in substance the func-
ton which is fulfilled in London by the
Bank OF England. ia Paris By the Bank
az France as the ultimate re@Ource in
emergency.
The aid which is being rendered to
the situation IS Indicated by the fact
that the total engagements or gold
have now reached $40 600 900. The to-
tal was materially increased today by
the announcement Of several purchases
which had not heretofore been made
public. OF the amount engaged the
sum OF 81 81 900 has already arrived,
including Sl2,366 l5Q which was laid
down from the Lusitania this morning.
This golG VIII auntN the pahls OF near
ly 5000. 600 600 iu loans. and VIII ma
terialy assist the New York banks In
their efforts Go meet the pressure Tor
currency throughout the country.
The fact that practically 500 .OO0. 900 in
currency disappeared from the New
York banks within "a week as Indicated
by the last bank statement is oonsid-
cred sufficient evidence that the New
York banks are doing their best io meet
the demands upon them
The total drain Of last week De- CONE
puted upon the basis of am actual loss
boz cash of about S300OpO0O m face of
the fact that $4,000 e00 of public money
had been poured into the New YORK
banks. n Is not possible 10 determine
what proportion of this 500 10000 went
west and what proportion went into
boards lu New York 10 o. estimated
in some quarters that about half ~
the amount was shipped Co western
hauks but other bankers put the proc
portion somewhat lower. leaving the
balance 90 De- accounted for hy hoard
ing.
MEASURES SUGGESTED.
one Of the measure which has been
a. subject OF some consultation between
Secy. Cortelyou and leading bankers
here hus been The sale of "a block of