The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1907-12-02
LARGE RESERVES
TO BE SHOWN BY
CALL ON BANKS
Expected. Action by Comp
..trol1er Will Aid Public
Confidence
TO STRENGTHEN CASH
Financial Institutions Pre-
pare to Show Sound
!. Condition
TO STRENGTHEN CASH
NOHOARDING IN EAST
Steps Taken in New York
TO Prevent Danger of
Imitation

NEW YORK. Dec. Ia. call upon
the national banks for their condition
on 4 very recent dare IS expected by
bankers here to come from the comp
troI1er Of the currency this week. -Four
OF the I'VE calls required each ,-ar by
law have already been made, t.<- last
having shown the condition of the
national banks August p. 1t IS pos
sible that the call now anticipated will
have an important influence on the
financial SITUATION It IS expected that
It viii reveal large reserves OF cash
IN the country hanks, and tlIs will
eend 20 restore confidence among de-
positors tq-a degree which win make
It easy to resume currency payments
throughout the country
The banks. even In normal times
usually prepare for call BY siren 9Th
ening their cash. in order to make =
good showing, not only to the eomptrol-
Iar but 10 their clients Their state
u1ents are required by law 20 be pub
Iished in local paper and they are
also forwarded to washington where
they are compiled by cities and states
WILL RELEASE CASH
The erect ot = cali for = report OF
condition Or fxed date. rasen j. us1-
comptroIIsr il to enable tte bank TO
release cash after the call. with the
knowIedze that another call is not
likely in she natural order Of Things for
about Two months. In the present sit
uztfou IT i declared by New York
boarding is not being done by New
Tprk bankers. a. indeed. their dsfciea-
cfeS IL required reserves indicate. but
that many ot the interior banks have
reserves running up 70 such proper
tions as 40 OF 50 per cent OF deposits.
/ The facts ,uflI reach the public from
/ individual banks through publication
locally and then wiz come TO the pub
lie generally through the compilations
made bv the comptroller
II the large reserves in lawful money
IN their own vaults are revealed gener-
zIIv by the reports it viii AT once in
spirs confidence IN the strength Of the
banks and create demand which they
viii no longer be disposed to resist,
after sending their reports. for the inn
mediate resumption Of cash payments.
FEAR RETURN FLOW OF GOLD
It is significant Of the change in
financial opinion that most OF the dis
cussiou among financial men last week
dealt with the dreaded effect OF q state
OF imitation OF the currency, into which
II was feared the country might emerge
with the passing or the effects OF ir-
rational dfstrust. The bringing for
ward OF this subject into debate while
/ the premium on the currency was still
being paid and other active measures
for relief OF the currency famine being
pursued was due to the plain lesson OF
experience IN past crises Of similar
kind. IN al OF these the first return
( OF confidence and the establishment
/ Of credit have brought a condition OF
actual redundancy OF the money mar
ket. heavy accumulation OF banking
reserves and a free export movement
Of gold
I While the enormous mass Of gold that
has flowed to the United States in re-
Spouse to the urgent requirements de-
veIoped by the crisis Is admittedly in
excess or the normal requirements of
/ the coming period. the return dow OF
gold is bound 70 have an unfavorahla
effect on financial sentiment and in the
event Of its undue stimulation by any
imitation or paper note issues which
would tend 10 force out gold. the dan
ger OF a check being administered to
the recovery in commercial activity is
taken anxious account Of.
/ The decision Of the United states
treasury department TO limit the auot-
ments OF ; Per cent treasury notes and
not to accept any more bids for them
was the outcome Of this new phase Of
the situation which the turn toward
normal conditions has developed.
ALL REQUIREMENTS NET
The engagement Of nearly s1ee.09e,
e9e OF gold for import, OF which ap-
proximateIy sse.eeo.eeo Ess been re-
ceived. the deposit with the national
banks Of about ssI.oes.eee Of govern
msHt funds and the issue Of new bank
notes TO the amount Of about $4,000.
e9e. have met the present requirements
and opened the uev 10 the rextrr77rff,,
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