Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-12-02
PRESIDENT PLEASED
WITH RESULTS
Return of Confidence
Following Bond Issues Con-
sidered Vindication of Ad-
miniStration'S Policy
IBy Morning Journal special Lsa.ed wIre.I


fBy Morning Journal Special Leased Wire. !
Washington. Dec. THE close OF
the past week found confident feeling
prevailing, la banking circles and at
the treasury. that the financial situa-
tlon of the country would soon resume
It's normal state. The Intervention of
the government two weeks ago. by
which IT was proposed TO issue $50
90, GOO In new securities. accomplished
the purpose anticipated by President
Roosevelt and Secretary C%ortelyou in
demonstrating the ability Of the treas
ury 10 relieve disturbed conditions
This result having been accomplished,
the actual issues Of new securities viii
be only about hair what was pro-
posed. In this respect the present adj
ministration departed from the policy
pursued ia 1898. when measures OF
relief were usually adopted only when
they became imperative. II is felt at
the treasury that the wisdom of the
new policy has been vindicated-that
It was better TO take resolutc ana
broad measures, even If they went be
yond The immediate needs of the sit
uation. The issues OF the Panama
bonds viii be for the full $4,000. 000
which were offered. but the issues OF
onc-year treasury certiticates VIII not
much exceed SIS, 10000 IL II proba-
bic also that The issues Of new ban
note circulation viii fail considerably
below some Of the early estimates, be-
cause OF the abundance OF currency
which WI be available when cur
rency payments are resumed by the
banks aud exchanges resume their
normal course. Since h Panama
bonds viii be held by the treasury in
the first instance as security FOR the
public money which IL paid for them.
and left on deposit witt the purchas-
ing banks. the bonds are not expected
to be- deposited to their entire amount
for bank note circulation. They can
only be deposited by substituting other
classes of bonds as security for de-
posts of money. while this would
have been done IL the new circulation
had required. II Is now expected az the
treas ury hat 1t viii not he don To
anything like the full issue Of bonds. |
II pLtlic one Is Withdrawn from
the tanks In the spring. the bonds will
he released AZ could be substituted
as -%ecuritN FOR circulation issued
against the onc-ycar certificates, " the
latter were then paid OF with interest
to the date of payment
The Information reaching Secretary
.Cortrbou and Comptroller Ridgclv |
Is vcry favorable to the resumption OF /
cash payments by the banks as soon
as the December pay rolls have been
disposed of. Ii h not believed that
there win be any disposition ON the
part OF the depositOrs "a make a u
for tnrrcnCV. Bankers who have been
in {, wn have IN many eases reported
cash reserves IN their Institutions
much IN excess Of legal requirements.
Some banks which are not In central
reserve cities are holding cash To as
high a proportion as 30 or 90 per cent
Of their demand liabilities. Evidence
ss.4uuHaH4 FAs as4Hna.nNH a. Him IN I
ishirg " found in the statement of
the New York clearing house banks
ON saturday with its actual Increase
of nearly 81, 0O0 600 ia cash and its
redu ton Of the basis 90 deficit In re-
serves by ovet 2i.0O0O0O
n this would have been obtained
with considerable gold on the ocean
and not counting In reserves. 10 Is ex-
pectrd that the statement Of next
week viii make e still more favorable
showing
with gold imports of tS5. 900. 900,
Including what Is ON the way. with
new bank note circulation already
taken Co the amount of about $50
U00, 600 iu the past month. an addi-
tiunHl circulation in sigh To the
amount Of perhaps $40. 600. 600. max
a total % new currency OF about
&1Nh. 0OO, Geo within the last Few
weeks. % is not believed ha % VIII be
necessarN Co 30 much further loo
swelling the circulation ON the con-
trarA Do b. anticipated that muuey
viii become a drug in the market
a short time
The manncr in which the national
banks have stood the strain has been
very gratifying Co the comptrolier.
Less than q dozen failures have oc-
urrcd since October T. which Is not
much above the average Of normal
lines This i4 tu striking contrast
with conditions in 1888 when more
than one hundred and sixty SUSPEND
-tous occurred at the height of the
panic
Il b. felt st the treasury that the
immediate emergency has nearly
PASSED and it WIFI mort by necessary for
pngrcfs to proceed with hasty and .
li-used mcasue hut 81 l- hoped that
legislation win he enacted which Y
siii enable the hanks tu meet similar
.uuditlons ln future without suspend Q
nH currency payments and without /
ernursu Co the treasury for special D
eature- of relief From present in- Z
the treasury will De- able Co 4,
ecoup the cash actually held az a
inrkiuE halanre hF % considerable !
mount during d spring and may :.
De- called upou tn increase the de- /,
Of public money very LARGELY :
q the banks in the next crop moving /,
easun. 4
rJBiIC ~FEAKER INrERRIPrEp @
Public speakers arn frrqurrflF Interrupted a
g replr cauEhtuE This unuid not hap q