The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-11-05
BANKS FALLING IN LINE.
Suggestion that Additional Currency
be Taken Out Acted Upon.


at the number of banks throughout
the country which have already indi-
Gated their purpose to comply with
the suggestion Of Comptroller of the
Currency RidSeley tnat additional
circulation be taken out. Although
the suggestion was made only yester-
day afternoon, large number Of
telegrams We're received at the depart
ment as early as 8 o'clock this morn
ing asking for additional circulation,
varying in amount from a few thous-
and dollars to two millions.
Sol Wexler, vice president Of the
Whitney Central National Bank, of
New Orleans, who, with other promin-
ent New Orleans bankers, mas had a
number of conferences with Secretary
Cortelyou in AL effort to devise a
plan by which cotton exporters could
get prompt cash returns for cotton
shipments, today SAID:
"The present situation can be re-
lieved in but two ways: First, by the
restoration Of confidence and the re-
turn Of money which has been with
drawn from banks in the east during
the recent panic.
"Second, by the rapid export of
our cotton, wheat, provisions and 9TH
er products to create a balance Of
trade in our favor and make importa-
ton of gold in large quantities pos
sible.
"The prompt and wise action Of
Secretary Cortelyou, aided by Mr..
Morgan and other prominent New
York bankers, has gone very far to-
ward restoring confidence. and mon
ey is again being redeposited in the
strong institutions of the country.\
"The. southern situation is more
diffiealt of solution, owing to the nee
Tessary delay in transmission Of ex-
change bills to Europe, and the time
required for the purchase aad ship
ment of gold to this country.
"The Southern banks are doing
their part by largely increasing their
circulation with the assistance Of the
comptroller and the Secretary Of the
Treasury, which enable them to for
ward their foreign exchange by mail
TO New York without requiring cur.
reacy for the entire amount. New
York can, in turn, as soon as these
bills reach the other side, import
gold and then transmit currency in
quantities throug ghout the agricul-
tural sections of the country.
"Some effort is being made by
large cotton houses to have their
foreign correspondents deposit funds
in foreign banks subject to cable
transfer against advice Of documents
deposited in southern banks with cot
ton bills. Of lading attached to come
forward Immediately, but, in my opln-
ion this transaction will not be made
on an extensive scale. However will
ing the Secretary Of the Treasury may
be to assist the exports of agricultur-
al products and the Importation Of
cold, I do not believe that there is
anything that he can do that is prac
tical and within the law until such
time as treasury balances have been
increased to an extent to enable him
to make large deposits of Government
funds in export points such as New
Orleans, Galveston and Charleston,
so as to enable banks in these cen
tres to await the arrival Of their bills
in Europe and the bringing of gold
against them.
"New York can assist these south
ern banks by crediting their accounts
daily upon receipts of telegraphic in
formation of the amount of checks
On foreign banks forwarded, thereby
enabling the Southern banks to check
against such balances in payment Of
collections and weekly remittance ac-
counts to interior banks Throughout:
the country, such transactions requir-
ing no currency under existing condi-
tions and merely bridging over the
three or four days time required while
the foreign exchange is in transit in
this country. There can be no per-
manent cure for the constantly recur-
ring scarcity Of currency at this sea-
son Of the year until there has been
a decided reform of our currency sys-
ten, either by the bill proposed by the
currency commission of the Ameri-
| l..