The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-11-01
MORE BANK CURRENCY SOON
MANY FAVORABLE RESPONSES 10
CORTgLYOUsS PLtV.

Chlra3s nsnE Nm TaEe 0ut 90. ~
q psspe N ttrgulntlng Votes "a o. Ir-
aisved @na. ma. U0D t@m1D .1D0. Ooa WIN
NJ lcnwAaea wiahla ths tent Ten Days.
w~AsuINuroN. Oct. III Rankssn In several
larg. citiaM have Indicated 10 the Secretary
~ tho Treasury and the Comptroller ~ the
Currency their cordial Endorsement u the
plan 10 bring about a large Increase In the
circulating medium ~ tho country by addi-
tiOnal issues II national bant currency.
Secretary COrtelyou and Comptroller
Ridgely ave been surprised. and OF course
gratiNed. by the character Of the responses
received to-day in connection with tho plan
announced from the Treasury department
yesterday. This plan In tO promote the
issue Of additional hank currency by per-
hitting national banks TO substitute minor
securities for the Governments bonds now
lying In the Treasury ~ security for Federal
deposits. provided the Government bonds
thus released are used To secure new issues
OF bank notes.
Communications by telegraph n tele-
phone came To Secretary Cortelyou and
Comptroller Ridgely from several cities to-
day making inquiries as to the plan for
swelling national bank currency and m
~nounoing the intention OF bankers in sew
eral cases to take out additional circulation.
George L. Roberts. former Director OF
the United States Mint. and lsw president
of the Commercial National Bank of Chicago.
is here and announced this afternoon that
his bank would Immediately take out
5000. 600 more in circulating notes. Ar
engagements have been made by Mr.. Roberts
for n1aftinn nm thu papaaaary aartKrffxt
Another banker who is here is Col. Wexler.
vice-president of the Central National
Bank OF New Orleans. He is making
arrangements for his bank to increase
largely it's issue of currency, declaring at
the same time his warm Endorsement of
Secretary CortelyOu's plan. He and others
who have been heard ron believe that by
cooperation among anker a vast amount
OF good may be accomplished by swelling
the volume OF money in actual circulation.
Inc scheme OF cooperation has found
expression In some instances in loans OF
Government bonds among the various
large national banks. Many OF the banking
associations have among their holdings
large amounts OF bonds which they do not
care to USE as a basis for new currency.
but are willing to lend them to other banks
which may be making plans for taking adj
vantage OF Secretary Cortelyou's offer.
Although the plan Of allowing the substitu-
ton or state and municipal bonds Tor
Government bonds as security for Govern
ment deposits, the released Government
securities to be used as a basis for new
bank circulation, Is not a new one, but was
practised by former Secretary Shaw, the
success Of the plan at this time is greater
than IL ever was. The reason for this is
probably tina bankers have been aroused
everywhere to he desirability of taking
measures tina will insur a sufficient amount
of money in general circulation.
There il now In the vaults Of the Comp
trOller Of the Currency's Office national
currency to the amount of Sl87 ,0O0. 900.
OF this belongs to banks that have
reached the maximum amount of
currency which the law permits them to
issue, but a large amount IL available for
limit. A few years ago there were a few
national banking associations that had
never issued a dollar of hank currency.
One very large Chicago institution was
among the number. The list OF these banks
is now very small, but there are many that
rave not availed themselves OF the privilege
Of issuing currency to the limit allowed by
which Is the par value OF their capital
stock. It was said at the Treasury De-
partment to-day hat there is one new bank.
for instance. that could still issue $40, OOO. 900
Of circulating notes If il saw fit to do so by
merely putting up the necessary security.
Comptroller Ridgely said to-day that he
believed that from S25, 900, 900 to $50, 600. 900
in additional bank currency would be
engaged within the next ten DAYS and that
the total mig greatly exceed that fiRIre.