Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-12-05
REcITEs EFFORTS TO AVERT PANIC
Increased Deposits in Banks Failed tn
Prevent Growing Money Stringency.

Prevent Growing Money Strinsency.
Speaking of the steps taken to avert |
financial stringency the report says
During the summer the gradual in
creasing rate of interest charged for
call money, time money and discounts
of commercial bills indicated a pro-
gressive diminution in the amount of
available cash. Accordingly, it was
decided Aug. %, 1907. to make each
week substantial deposits in the differ
ent sections of the country, with the
particular object of facilitating the fall
movement of the crops. In his an
nouncement of this plan the secretary
of the treasury said:
=" This action is taken to meet the
commercial and industrial needs of the
country at this season and is believed
to be preferable to waiting until a time
of acute stringency, when the only al
tentative would be large general de-
post. The latter policy the secretary
desires to supersede by one which
shall have as it's ultimate object the
adjustment of the operations of the
treasury department, as rapidly as may
be practicable under existing law, in
such manner as shall preclude their
being in any sense a disturbing factor
in the business world
Placed S26.O6O,O 900 Out.
These distributions We're continued
weekly until the aggregate amount of
$26.000.000 had been so distributed
Notwithstanding this measure. there
was a constantly increasing stringency
/ in the monetary centers, which cuI-
minated in the forced suspension of
several important institutions.
! Prior to this crisis the shipments
of currency to the west by eastern
banks for crop-moving purposes had
been insignificant. There had been no
important shipments of gold abroad,
so the monetary stringency seemed to
be due, i'll large measure. TO the hoard
ing Of funds by owners thereof who
/ had become apprehensive of their
financial safety. AS the crisis APP
preached the department adopted the
I strongest measures to give material
assistance. Within four days there
was transferred from the treasury to
the banks the sum of $35,000,000, the
security received therefor being such
s, state, municipal and railroad securities
as are acceptable under the laws of
the states of New York, Massachu
sets, Connecticut and New Jersey as
investments by savings banks. On
/ Nov. II there were on deposit in ma
! tiOnal bank dep0sitaries-
To the credit of the
treasurer of the
United States. w 1912. 95S, S11 81
To the credit of dis
bursting officers. .. 13,S77,42 &C
Total ............. 226,S36, 237. o.
This sum was distributed among
Iuational banks in every state and ter
ritory of the union.
| Provided for Gold Imports.
These deposits, and other treasury
operations, in connection with the as
sociated efforts of prominent fnancier!
and other business men, who aidet
first by giving important relief to Ger
tain embarrassed institutions and after
wards by providing for the imports o
gold, of which up to Nov. IS there ha,
been engaged more than 100000, 900
operated to prevent dangerous panic
The secretary of the treasury ha
made such adjustment of deposits be
tween the various cities and sections
as was possible in such a time of finan
clal stress, and through the coopera
ton of eastern bankers has secures
the transfer. through the usual con
mercial channels. of large sums O
money to the south. the west, tn
northwest and the Pacific coast Their
was, however, great financial distres
in many sections of the country and
remarkable scarcity OF currency. TIL
clearing houses in nearly all the prom
lnent cities of the United States fel
Iobliged to adopt such measures of RI
lief as they found available The r.
markably sound and prosperous cond
ton of the country would seem t
warrant the belief that the strain wi
leave behind 20 extensive business de
lpression.
NEUTRALITY-SUSPICIOUS. Result.
when the story of the recent con
mercial and industrial disturbance ha
been fully told I am confident tha
many misapprehensions will be cleare
away and that the interdependence {
all sections of the country will b
more fully understood. 1t is said tha
many of our people have hoarde
money. This is undoubtedly true; bt
so have many of the banks. We hea
little, however, of the untold number
of patriotic citizens who. knowing thu
the banking situation throughout tn
country was essentially sound did ne
allow themselves to be influenced b
the excitement of the moment. BIZ
cooperated with national banks, sa
ings banks, trust companies and othe
institutions to support credit and r
store confidence.
''The secretary of the treasury
given wide discretion in many matter
wherein he is rarely called upon I
exercise it, and little. if any. in Other