Arizona republican., 1907-11-09
OUTFLOW OF CURRENCY
 TO THE COUNTRY BANKS
New York Bankers Say They Are Doing All
 They Gan In the Circumstances
The Relief Which is Coming to the Metropolis Will Be Distributed Throughout the Country at the Earliest Moment.

New York, Nov. S-The lea ling New York banks were exerting themselves actively today to meet the demands of their country correspondents and de- positors for currency. They declare that the suggestions made from sev eral western sources that they are not meeting the legitimate demands for currency from the west are entirely unfounded and that they are on the other hand taking every practicable measure to aid the west and south. One large bank with several thousand correspondents has depleted its reserve by about one-fourth during the last few weeks to supply currency where it is most needed. and has made large shipments south. Country banks have been allowed to draw down their bal ances to a point which affords in many cases hardly enough to meet the drafts sold in the usual course of business.
 They have brought paper for redis- count to their New York correspond ents in large amounts and the princi- / pal difficulty of the New York banks has come from the demand for cur rency to be shipped against the bal ance created by those rediscounts. As the rediscounts have been in the na- ture of accommodations and have not brought currency to the discounting banks. they do not feel that they should be called upon to supply currency in large amounts under the existing con ditions.
 The best possible judgment is used in meeting these country demands for .-. special cases to ship all that is asked for but a portion. ranging around one half. Special favor has beer shown to small interior banks where there are no clearing houses.
 It is admitted that the cotton move ment is seriously checked by the lack of small bills and silver to pay tho small growers and by the inability oi the southern banks to handle the inn mense volume of business accumulat ing. Grain shippers a.- m better shape owing to the gold secured by the banks of Minneapolis and St Paul and sr- engagements for paying cash in New York on grain bills.
 New York banks feel bound to re- tain d certain portion of the reserve
 
 because they fulfill in substance the function which is fulfilled in London by the Bank of France. The aid being rendered in the situation is indicated by the fact that the total enga gements of gold have reached forty millions The total was materially increased to- day by the announcement Of several purchases not heretofore made public Of the amount engaged s21.3 GOO has already arrived including sl2.366. .15C which was laid down from the Lusi- tania this morning. This will afford a basis for nearly s200. COG, ,O00 in loans The fact that practically se0.OoO. 900 ir currency has disappeared from New York banks within a week as indicated by the bank statement is considered sufficient evidence that the New York banks are doing their best to meet the demands upon them. It is not possible to determine what proportion of this went west and what went into the hoarded safes of New York It is es- timated in some quarters that half the amount was shipped to western banks but other bankers put the proportion somewhat lower.
 One of the measures which has been the subject of consultation between Secretary Cortelyou and the leading