Los Angeles herald., 1907-11-01
GOLD IMPORTS BRING
RELIEF; CIRCULATION OF
BANK NOTES INCREASES
Ry Assoriated press.


NEW YORK, Oct. 31.-Indications that
available supplies of cash will be materi-
ally increased within short time by i'm
ports of gold and the increase of the bank
note circulation, and that the movement
of cotton and grain crops will be facili-
tated in every way possible with the re-
suit of increasing our credits abroad, were
the salient features of todays financial
situation.
1t seemed to be recognized everywhere
that the acute stage of the crisis was
over and that q that remained was to
obtain sufficient rrency to resume pay
ments upon broad scale and thus to
restore conditions prevailing before the
crisis.
The engagements of gold made in New
York; Chicago and elsewhere brought up
the total import movement within the
past week to $23.750.000 AS the amount of
gold will afford a basis of credit to four
times the amount. or about s95. 900, ,000 1t
will in itself afford much relief to the ex-
sting pressure.
The action of the Bank of England in
raising it's discount rate from Az to 5iA
per cent was in accordance with expecta-
tions in conservative circles. The fact
that the increase was not made to per
cent, and that the English rate remains
per cent below the German rate. is ac-
cepted as an indication that the situation
at London is not considered acute
Suggestion Popular
The prompt response of the national
banks throughout the country to the sug-
gestion of Comptroller Ridgey that they
should employ United States bonds as
largely as possible to secure circulation,
and such other bonds for those pledged
against deposits of public money, promises
n. considerably increased available stock
of currency. The estimate of an increased
bank note circulation of $50. 900. 900 is con-
sidered well within the probabilities. 1t
will require time, however, in some cases
for the banks to obtain proper bonds to
substitute for their United States bonds.
4fr. Vanderlip, vice president of the Ma
tidnal City bank, made the fruitful sug-
gestion today that the savings banks
would at once improve the general situa-
ton and add to their circulation if they
would sell their holdings of United States
bonds to the national banks. Even in
cases where they do not care to sell, 1t Is
believed they will lend the bonds to the
national banks, as has often been done
in the past.
Interest is continuing to center in the
movement of the cotton crop from New
Orleans and other southern points where
it is essential to provide bills against the
imports of gold. Secretary Cortelyou, ac-
cording to Washington dispatches today,
was disposed to increase deposits of pub
lie funds in the southern banks as rap
idly as such funds become available. This
will supply the banks with the stock of
currency needed to handle the cotton
CROP and will enable them to await with
less embarrassment than otherwise the
arrival of their cotton bills in Europe and
the bringing back of their gold.
Credit for Foreign Checks
The committee of New Orleans bank
ers now in Washington has suggested that
the New York banks can change the stu
alton by giving the southern banks credit
for checks in foreign banks forwarded as
soon as they receive telegraphic advices
of the amounts. This will enable the
southern banks to check against such bal
ances in payment of collections and in
making remittances to interior banks
throughout the country
1t is noted with interest by leading bank
ers here that the present scarcity of cur
rency and the resource which had been
made, the national banks circulation, are
arousing an unusual interest in the plan
for currency reform indorsed by the
American Bankers association. This plan
was adopted in December of last year,
after consultation with representatives of
the New York chamber of commerce, and
was presented to congress at that time.
The plan did not receive the definite ap-
proval of the American Bankers associa-
ton, however until the meeting at At
lantic City in September last. but at that
time it was indorsed by a nearly unani-
nous vote after strong arguments in
favor of it by A. Barton Hepburn, presi-
dent Of the Chase National bank of New
York, and Representative Charles N.
Fowler. chairman of the house committee
on banking.
The committee which framed the meas
ure was continued with authority to take
further action. 1t has not held a meeting
since the convention al Atlantic City, but
some of the western members of the com
mittee are strongly desrous that such a
meeting be called at an early date in
order to bring the subject properly before
congress, while public opinion is aroused
on the subject.
NORTHWEST STANDS FIRM;