Los Angeles herald., 1907-11-26
BANKS SOON
WILL PAYM
REAL MONEY
TREASURY DEPARTMENT TOLD
OF PLANS
CHICAGO FINANcIER coNFERs
WITH coRTELYou
Officials at Washington Believe Ar
raneement Has Been Made by
institutions to Withdraw
Scrip

Ei AseoClatfl TlSSo-
WASHINGTON. Nov, "a more CON
fident tone in regard to the success OF
the new loans prevailed at the treas
ury department today than at any tinie
since tho announcement of the loans
week ago. The visits of Mr.. Morgan on
Friday and Saturday We're followed NO
day by a visit from James b. Forsan,
president OF tho First National bank OF
Chicago. Mr. Forgan saw the presldeh.'
Secretary Cortelyou and Treasurer Treat
and expressed his belief that the palhs
throughout the country would soon pe
In O. position to resumce cash payments
The subject is of peculiar interest," 10
treasury officials, for nearly liio,ltn
government receipts have been declining
as a direct result of the scarcity of cur
rency.
Distillers. brewers and others who arc
required to prchaae internal revenue
stamps have not been able TO secure cur
rency In sufficient quantities from the
banks with which to purchase these
stamps, and as the collectors are not
allowed under the law to receive ceru-
fed checks or anything bat lawful money,
except at their personal risk, the result
has been that even sufficient amount
of stamps to cover immediate needs has
is insisting that depository banks shall,
as soon as possible meet the demands
for currency in this respect.
All Desire to Pay Cash
There seems to be a general desire
among the bankers In New York, ChiT
cago and other sub-treasury cities and
financial centers to resume currency
payments at the earliest possible mo-
Al, visit made
with a view of hearing the views of the
treasury officials on this particular sub
ject.
It is believed among the treasury Of
ficials that n complete understanding
was arrived at between the banks OF New
York, Philadelphia, Baltimore, Cincin-
natl, Chicago, st. Louis, New Orleans
and San Francisco by which there VIII be
a. general resumption of currency pay
ments within the next few days, and
possibly before the close Of the present
week.
The reports received at the treasury
department today from Chicago and Bos-
ton are that currency payments by the
banks are on the increase, and that the
situation at those cities, and in fact at
all other points, is rapidly improving.
1t is learned that New York and Chi
cago are at present making daily ship
ments of large sums to the croprmoving
centers of the west and south, and 1t is
confidently bel.eved that these shipments
will be continued in increasing amounts
until normal conditions are again
reached, or until the necessity for them
has passed.
In addition to the discussion of cash
resumption. Mr.. Morgan left tangible
evidence of his visit In a subscription
by the Chicago clearing house banks for
S2,500.000 of the new one-year certiheates.
Additional amounts VI these certificates
are steadily coming to the treasury as
security for bank note circulation These
represent allotments made by Secretary
Corteleyou last week.
Subscribe to Bonds
Subscriptions for the Panama per
cent bonds are also arriving in large
numbers. These subscriptions are so
numerous that it is not expected that
it will be possible to open, schedule and
classify the bids before closing the treas
ury department on Saturday night after
the time for subscriptions expires at
noon
The daily cash statement of the treas
ury does not yet show the effect of any
considerable payments for the new cer-
tificates. This is partly because only %
per cent of the face value of the amount
sold is paid into H., treasury in cash,
while the remaining rs per cent is left
with the banks on deposit 1t is also
due in a considerable measure to the
time required for advances from one Of
flee to another of the transfer of funds.
Although applications and cash de-
posts for the new treasury certificates
are being received at the treasury in in
creasing numbers from individuals as
welel as from national banks, it is
learned that no allotnenets have thus
far been made except to banks that de-
sire to use them as basis for circula-
tion. All applications received from in
dividuals and from banks whose limit
under the law has been reached are be-
ing laid aside for thu time being and If
allotments are made to them at all 1t
is believed it will not be as long as the
them from banks desiring them for cir
culation purposes, The declared pur-
pose of Secretary Cortelyou in issuing
the certificates was to increase the vol
ume of outstanding currency and this
object 1t is said, can best be accom-
p.ished through the increased issue of
national bank notes for the present at
least the efforts of the treasury officials
will be in tkat direction.
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