New-York tribune., 1907-11-09
SCARCITY OF CURRENCY
INTERIORS; HEAVY DRAIN.
Premium Here LO7ger-MOre Gold
Engaged-The Banking Situation.


ing bankers. the currency stringency. the end os
which does not yet seem to be in sight More
gold was engaged yesterday in spite Of the
raising of the Imperial Bank OF Gfermany's dis
count rate to the highest figure in years. fol-
lowing similar action the preceding day by
the Bank of England and the Bank of France;
and although the drawing of gold from abroad
is expected soon to cease. the credits being
tablished by the heavy expectation of gram
and cotton will enable further supplies Of the
metal to be obtained whenever needed
The sold coming in. however. is in large
measure being forwarded to interior points,
and as much currency as can possibly be spared
by the local banks is being sent 10 their out-of-
town correspondents. for the shortage of cash
country wide
One of the large local banks with several
thousand correspondents. has depleted its re-
serve by about one-quarter during the last few
weeks to supply currency where it is most
needed and has made large shipments to banks
in San Antonio. Galveston. Memphis Mobile.
Atlanta and other Southern cities. The country
banks have been allowed to draw down their
balances to point which affords in many cases
hardly more than enough to meet the drafts sold
in the ordinary of business
SMALLER BANKS FAVORED.
Special favor is shown to the small interior
banks where there is no clearing house 1t is
admitted that the cotton movement Is seriously
checked by the lack Of small bills and silver to
pay the small growers and by the inability Of
the Southern banks to handle the immense VOL
ume of business accommodating at Southern points.
The grain shipments are in better shape owing
to the gold secured by the banks OF Minneapolis
and St Paul. and arrangements for paying cash
in New York grain bills The New York
banks. however feel bound TO retain certain
proportion of reserve to guard against possible
contingency.
The fact that practically S6OOOOOOO in cur
rency disappeared from the New York banks
within week. as indicated by the last bank
statement, is considered sufficient evidence that
the New York banks are doing their best to
meet the great demands on them. The total
drain of last week is computed the basis OF
an actual loss in cash of about $3OOOOOOO. in
face of the fact that S3O.OOO.OOO Of public
| money had been poured into the New York
| banks. 1t is impossible to determine what pro-
portion of this S60OOOOOO went West and what
proportion went into boards in New York So
far this week the local banks have lost more
than S13OO0OOO to the interior.
FALL IN PREMIUM
There was a decided fall yesterday in the
premium currency. due to a large outpourings
| of boarded money, and at the close of banking
| hours the premium rate had declined to Ia per
| Thursday. Most of the days transactions were
made at per cent. Bolognesi. Hatfield & 60.
announced that they had purchased over $1.O0O,-
| 600 in currency yesterday and that practically
| all of this amount boarded money. They
| reported the market as much easier than
| Thursday Mann Bill < Ware also did largo
| business at lower rates.
Large firms which need currency for payroIls
We're able to procure cash yesterday at S44 per
cent, against a charge in some cases as high as
| TO "A per cent on Thursday. Money brokers
reported that the market for currency was grow
ing much wider. This, of course signi1ed that
more people were selling. attracted by the hign
rates. One prominent broker said he thought
the highest rates for currency had been seen
and predicted that the heavy outpour of boarded
funds would soon cause the premium TO disap-
pear altogether. 1t was estimated that more than
100000 of boarded money was taken TO Wall
Street yesterday and sold
GOLD ENGAGEMENTS.
The gold engagements yesterday included 81
900 by the National City Bank. OF which ST.
100000 is to come from the Argentine: s1.OOO.Oo0
by Lazard Freres. S1.2OOO0O by HeideIbach,
Ickelheimer & Co and 100000 by the First Ma
tional Bank of Portland. Ore Lazard Freres
also received from Mexico 100000 in American
gold coin. the engagement of which had noe
previously been reported. and the New York
agent of the Bank of Nova Scotia had con-
signment of $25O.OOO the Lusitania Thess
sums. aggregating $4SOO.OOO. bring the total en-
gagements TO date up TO S45,275.OOO.
The Lusitania brought TO port yesterday from
Liverpool S12,361.15O in gold coin and bars. Tbs
consignment weighed twenty-four tons and vs4
taken ashore soon as the big liner made fast
to her pier The gold was packed In SS4 wooden
boxes. bound with steel bands. The unloading
done under the personal supervision of
Joseph Lancaster, the purser.
small portable fence kept back a curious
crowd of passengers whose baggage had not Vet
come ashore. A guard, consisting of several po-
ncemen from the traffic squad and six detectives
stood by seven trucks which drew up outside
the pier TO receive the gold. The boxes were
carried the length of the pier on hand trucks %
the waiting vehicles.
The bars were taken to the Assay Office and
the coin to the Sub-Treasury and placed to the
credit of the bankers who imported it.
CONSIGNMENT TO MR. FISH.
A feature of the distribution of the gold which
caused some comment was that S2.IOO SEQ was
consigned TO the Assistant Treasurer Of the
United States in this city. Hamilton Fish, As
sstant Treasurer. said that the government had
not imported any gold. as the reserve was sufi-
cient for all demands. IL was said at the Sub
Treasury that under the present circumstances
the gold would be received and credited to the
Chicago bank which had imported IT, The OBJ
ject of the bank in having the gold consigned to
the Assistant Treasurer here instead of to its
New York correspondent is supposed TO have
been to have the money transferred by telegraph
to Chicago through the Sub-Treasury.
Business was a normal basis yesterday at
both the Trust Company OF America and the