The Washington herald., 1907-11-03

New York. Nov. AFTER the week or
more Of threatened panic through which !
the financial world has passed with /
safety it is with relief that the leading /
bankers Of the country note he gradual /
return Of normal conditions. 1t is au-
thoritatively stated that all fears of /
money panic are at an end. and the only |
remaining Inconvenience caused by the |
past pressure is the stringency of cur |
rency.
And this said a foremost fnancler |
to-day. lis but temporary em5arrass- /
ment, caused by the haste of depositors /
TO withdraw their money from the banks 1
This money, being taken out Of circula- !
ton, is the direct cause Of the stringency /
But now that more natural conditions
again prevail, it is being redeposted, and
within a week. or less believe that the |
threatened panic VIII have become a
memory"
employees all over the city received their !
money as usual to-day. and the only in
dication that anything out of the ord-
nary was happening in the financial world
was that their envelopes had an unusual
ly large amount of gold in them
Millions from Europe.
Following the abrupt and extensive ad-
vance in sterling exchange rates yester-
day, and Notwithstanding that all trans
ferences had risen above the gold ex-
port point, with currency selling at
premium Of ? per cent, it became known
in financial circles that the engagements
of gold abroad would continue indefinite
ly, or. as some bankers said, until a mini
mum of $40O0O.OOO worth of the metal
had been brought over the ocean.
Every known expedient viii be tried to
hasten the movement Of bullion 10 this
country and particularly 10 this city.
Persons in a position TO know declare
that it viii be impossible for the foreign
exchange brokers to keep the rates up
to where they climbed yesterday, and
they point 81 the history Of 1888 for cor
roboration.
Lazard Freres to-day engaged an ad- /
ditional $4,000 gold for import. making
the total engagements by this firm on the
present movement Sl,OO0000. and total en-
gasements for import TO the United
States $27.2OOOO0
City Receives S3O,OOO,OOO.
Last night, too the comptroller of the
city received two checks Of $l5,0OOOOO each
from the participants IN the syndicate
that has agreed 10 take $3O00O,O00 of the
new per cent revenue bonds These
bonds will be delivered TO their purchasers
as soon as the certificates can be finished,
for it is known that the largest part of
them will be sold in France and Eng
land, which will bring still more money To
this side Of the water So far none Of the
gold engaged abroad has yet arrived. but
the Lusitania. on Wednesday, and the
Kronprinzessin Cecilie, a little later, VIII
bring two-thirds Of the golden freight be-
tween them, and other argosies viii fol
low hard on their heels.
Notwithstanding the heroic eqorts Of
fnanciers to bring the money situation
back into its normal appearance. the
senseless boarding Of currency by persons
too ignorant 20 know the hardship they
impose on themselves as we'll as others.
or too fearful 20 leave in impregnable
vaults the bank notes with which they
stuff their mattresses, Is hamperiug the
best-laid plans OF more intelligent direc-
tors, and delaying in a way that is ex-
asperating TO everybody, the return TO
ordinary conditions IN banking. In many
cases these hOarders are the persons who
receive their weekly wages in the form
OF checks in consequence, of their obvi-
Ously short-sighted policy and who. in
their anxiety TO get cash. part with the
perfectly good checks at q discount.
Banks Rapidly RecupeFate.
This boarding. as bankers explain. is
the worst danger that there is to the
banking world and he world of com
merce in general The banks do not lack
wealth. but cash. a circulating medium.
AS fast as possible they are receiving
from the Comptroller Of the Currency
additional banknotes, for which they are
depositing their bonds as collateral. but
as yet they have not received enough
currency from Washington to make I'D
what was lost TO their depOsitors on the
runs OF last week.
Particularly is there a scarcity OF small
bills It is said that the West has a
corner on these. and so far as the East
and the Middle West are concerned. there
are few persons 10 deny that such is the
fact. AS it is. business concerns with
large NUMBERS OF employees on their pay
rolls are now forced to give them certified
checks for their wages There has been
ne demuT over accepting these as yet. be
cause Of the general acceptance Of the
explanation that they are as good as
money.
Oppose Trust Receivers.
Supreme Court Justice Clark, Of Staten
Island. heard to-day an application of
Attorney General jackson 10 make the
receivers for the Knickerbocker Trust
Company permanent The motion was
opposed by the directors and others. and
Justice Clark decided to set the matter
over until November 80 He then will
hear further arguments.
Julian T. Davies and James P. Soley.
for the directors. said that If the re-
ceivers were made permanent the reor-
ganization Of the company would be
hindered. They argued that the IL O90
depositors OF the company would with
draw their money as soon as possible,
leaving the company in a position that
there would be no funds for continuing
business. It was announced that the
company hopes TO be reorganized to co
business in about four weeks. and an
adjournment Of action for that period
was asked.