The Lee County journal. (Leesburg, Ga.) 1904-19??, 1907-11-15

GOTHAM BANKS
BRAYELY WORK
To Meet Heavy Demands of South
and West for Currency.
LARGE SUMS SHIPPED
Cotton Movement, However, is Seriously
Checked by Scarcity Of Bills Of
Small Denomination.
LARGE SUMS SHIPPED


The leading New York banks were
exerting themselves actively Friday to
meet the demands of their country cor
respondents and depositors for curren-
cy. They declare that the suggestions
made from several western sources
that they are not meeting legitimate
demands are unfounded and that they
are, on the contrary, taking every
practicable measure to aid the west
and south. One of these large banks,
with several thousand correspondents,
has depleted its reserves by about a
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
southefnS points.
The country banks have been allow
ed to draw down their balances to a
point which affords, in many cases,
hardly more than enough to meet the
drafts sold in the ordinary course of
business. They have bought paper
for rediscount to their New York cor
respondents in large amounts and the
principal difficulty Of the New York
banks has come from the demand for
currency to be shipped against the
balance created by these rediscounts.
AS these rediscOunts have been ac-
cOmmOdations and have not brought q
cent of currency to the discounting
banks, they do not feel that they should
be called on to supply the. currency
in small amounts under such condi-
TONS 1t is not usual except in spe-
cial cases to ship all that is asked,
but about one-half is usually shipped,
the proportion varying, according to
the cash strength of the bank calling
for coin or as the demand is for le-
Ultimate purposes. Special favor is
shown to the small interior banks,
where there is no clearing house, be-
cause it is realized that they are not
in a position to count upon co-opera-
tion and the use of clearing house GER
tifcates, as in the case of communities
having a Sluz1ber of strong iDstitu-
tons /
1t is admitted that the cotton move
ment 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 inn
mense volume of business accumulat-
ing at southern points.
The aid that is being rendered to
the situation is indicated by the fact
that the total engagements Of gold
have now reached $40,00O,OOO. The
total was materially increased Friday
by the announcement of several pur-
chases which had not heretofore been
made public. Of the amount engaged,
$21,311,O00 has already arrived, inclu-
ding $12,361150 brought by the Lusi-
tanla Friday morning. This gold will
afford the basis of nearly $20O,000,OO0
in loans and will materially assist the
New York banks efforts to meet the
pressure for currency.
The fact that practically $6OO00,-
600 in currency disappeared from the
New York banks within a week, as
indicated by the last bank statement,
is considered sufficient evidence. that
New York is doing its best. The to-
tai drain of last week is computed
upon the basis of an actual loss in
cash Of about S3O0OO,00O in face of
the fact that $50, 100000 of public mon
ey had been poured into the New York
banks. 1t is not possible to determine
what proportion of this s6O,O00OOO
went west and what proportion went
into boards in New York.