The Montgomery advertiser., 1907-10-30
rHE FINANCIAL srruArros.

I = - ~ @@- -~<r <-<<@< - t<@ -'~'~-< The banks of this city decided yes- terday to adopt temporary regulations governing the withdrawal of currency similar to those iopted in the last few days by the banks in all the lead- Ing cities Of toe coansry. This Is : wise stsp, apoh whio., not merely the banks are to be congratulated. It is for the best interests of this city and ahe surrounding section.
 The financial situation in New York is. of course. at the boltom of the dis comfort all over the country. The shrinkage in the past year in tue values of all securities caused the de- velopments there last week. This Is Ia healthy movement. but nevertheless 1t made the New York banks hold all their currency tight and pull upon all other banks for whatever cash they could get hold of. As result Boston. Philadelphia. Chicago, St. Louis. cin- cinnati etc, had to protect their cash reserves against New York's voracious demands. One by one the smaller cities in the West and South were forced to fall into line: they could not get anA currency out of New York and other large cities. and SC they took steps to prevent New York and the other big cities from draining them dry.
 It was to have been hoped that the Southern banks had been strong enough to have withstood this crAin- age process At this season. however, Southern banks need large sums of spot cash with which to move the cotton crop. If New York had continuei to ship currency South in payment of irafts for cotton. all would have been well, But when New York began to absorb all the cash she could get and to let none go. then the Southern banks had to take care of the business interests of this section. That they are doing bs holding their own cash reserves.
 The action of the Montgomery harks was plecip.tated directly by the course of their brethren in Birmin gham and Mobile. Montgomery could not urder- take 10 let all the banks in the State. as well as those outside. draw upon her cash reserve at will. The step vas not caused by any local disturbance The Montgomery banks have on hand three to four times the percentage of cash required by the national bank laws Cotton has been bringing a very good price, much of it has been sold. and the banks have been making very fair collections Nor has there been any local nervousness among deposi- tors. Not single bank has had any sort of a run on it. nor was there any anxiety that there would be such de- yelopment. Tn fact, the banks had very light business Monday. less money being paid out over the counters than on the same day the week before.
 1nEI6 ib aUuuudul IcdSOn SO UGllGT1 that the situation will prove merely temporary. New York is the financial heart of the country's commer- cial body. Her nerves are steady ing. her excitement is cooling or. As soon as the acuteness Of her attack disappears, the rest of the country will breathe easier. The indications are that 1t will not be long before her banks will return to normal business procedure. New York has put on the brakes, and as quick as she relaxes, all the other cities will In turn relax. All the cities, all the banks, are linked together like cars in train. in the very nature of the country's commer- cial relations. Distress at the heart has merely caused discomfort at the extremities. where there is no local symptom of inflammation. The big grain crops of the West are bringing fine prices and the West is fat and prosperous. The fair cotton crop Of the South has been bringing good prices. and the South is solid and safe. The farmers of the West and of the South will save New York from the ruin of her financial follies. but they are going to do it in their own good time and in their own comfortable way. New York is not to be permitted to secure the stimulation of all the cur rency in the South and West, in order to recover instantly from her vertigo.
 The south is ali right. Alabama is all right, Montgomery is all right, and no business man need lose sleep on ac- count of the conservative, cautious, wise course of our banks. It is not for their own protection half so much as for the protection of the business interests of this section.