Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-11-02
DUE IN PART TO sTR1NeENCY
Action Will Be Taken as Soon IS
Bonds Can Be Had.
NO CASH RULE WILL CONTINUE
Omaha Banks Cannot Change Policy
Until East Makes Move.
BUSINESS RUNS ON SMOOTHLY
President Yates of Clearing House
Association Says Local situation
Is Undisturbed Now by
sign of Trouble.

sign of Trouble.
Banks OF Omaha will expand their cir
culation between $4,000 and $4,000 within
the next few weeks, while some OF the
banks will be able TO secure as much as
4 $4,000 as soon as It can be shipped from
the Treasury department and United States
bonds deposited for Il.
The present rule that cash will not be
! paid out on checks except in small
| amounts, will be continued at least for
part OF next week. according to Henry
w. Yates. president Of the Clearing House
association. Mr.. Yates declares 1t would
be folly for Omaha to change the rule as
long as Chicago. New York and St, Louis
| retain It, the Omaha banks would be
drained Of their money for the benefit OF
these cities lie said the Omaha banks
would not change the rule until these
cities take such action. This decision was
arrived at at meeting of the Clearing
House association yesterday. The members
OF the association will meet again this
| afternoon to discuss the situation
The decision to increase their circulation
| is not wholly the outcome of the present
rule to hold money in the banks and extend
the check system, but the present situation
has had its influence and when the clearing
house rule is suspended bankers will want
more circulation in the shape OF bank
notes. other banks will not expand their
circulation though there is but one banl5
n the city which has used all the circula-
| ton to which It is entitled.
I'VE are planning to increase our circula-
ton materially" said Vice President +. II.
| Davis of the First National bank part
( of the currency may be secured at once
and we have wired the comptroller OF the
currency to learn how much we have
printed in Washington. We will get all we
have printed at once and more later whenl
he engraver can get the work done"
President ]. II. Millard Of the Omaha Ma
| tional bank said:
I'VE have a circulation of $4,000. Our
capital is $l.0O0OO0 We could issue bank
notes up to the 100000 mark. but do
not believe 1t will be necessary for us to
expand our circulation"
VIII Get Money at Once.
President Luther Drake OF the Mer-
chants National bank said:
1--WE have an amount OF government "A
bonds I'm New York not pledged to the
government either for deposits or cir
culation We have ordered these de
posted with the treasurer for additional
circulation. 1t is possible the notes are
already engraved for u.s. in which event
we will get the money at once. We had
planned to expand our circulation this fall,
regardless of the present situation"
Now that Secretary Cortelyou has made
1t generally known that the banks may
increase their circulation by substituting
| for government bonds behind public depos-
| it's other approved bonds and employing
the former as security for that purpose, It
is expected I'm treasury circles that banks
| in all parts of the country will avail them
selves OF this OFFER by increasing the ma
tional circulation to the extent OF $5.OOO,OO0
| per week.
Omaha bankers express the opinion this
! is too high and that the most that can
be expected for some time is an increase
of from s1.5OoOoO 70 100000 a week.
As It has been anticipated the banks
would ask to increase their circulation and
| the banks have believed IL would be neces-
sary, large amounts in notes have been
printed. It appears that two Of the Omaha
hanks are so equipped and will be able
to secure between $4,000 and 10000 At
once
Business Running Smoothly.
Everything is quiet. business moving
along as usual" said President Yates OF
the Clearing House association, when
| asked about the financial atmosphere FRI
day. Some OF the banks are issuing the
venience OF those who desire TO trade
checks. Some do not like to give change
on the s. and $40 checks in silver or cur
rency and the result has been the neces-
sity for the 81 and 81 checks"
The Brandeis bank is paying all checks
| and depositors in cash without restrictions
The oficers of this bank say they have
| more currency now than at the start
Monthly pay checks and vouchers are
being paid in the cashiers. checks for the
most part, but the hanks are generous
enough to slip a nice sum OF money with
| the check each time, giving the customer
enough ready cash to purchase little things
without the inconvenience of giving CASH
iers' checks TO street car conductors or
box office clerks.
At the Omaha National bank the reRu-
lar monthly pay checks OF the Union Pa
cifc were redeemed as usual as fast az
! presented. The railway employees made
up quite a long line. but found their money
awaiting each OF them as soon as he moved
up to the window The Union Pacific pay
roll is something the bank handles every
month and It would have attracted no
special attention but for the fact that pay
checks are the same as cash when other
demands are met with cashiers checks and
clearing house certificates.
Representatives OF the various banks
who make up the Clearing House associa-
tion had hearty laugh In their meeting
Thursday afternoon at the juvenile story
that Secretary Cortelyou had come to the
! rescue OF Omaha banks with the tremen-
dous sum Of $4,000. which he was about
to ship.
That's the best Joke I ever heard" re-
marked one OF the dignified bankers, ana
he laughed TIL he shook. But Seriously
he said II is in a way a reflection upon
the banks OF Omaha. for thev -v@,iIA se-a
70 be very bad off 10 be where $4,000,
divided among the eight Of them. Woun
rescue them"
OPPOSES PETITION To CONGRESS-
II. W. Yates Declares Against Aetteu
nj Present Time