Evening star., 1907-11-17
COLLABORATING EVIL
No Longer Any Tangible Rea-
son for the Practice.
CASH VOLUME GROWING
Government Deposits, Foreign
Money and Note Circulation.
ENOUGH TO RELIEVE STRAIN
Advice Of Cortelyou-Hopes the
Nervousness Of the People VIII
Soon Pass Away.

+ NOW YORK. November 16.-'1 beheve'
sata sxecretarx Cortelyou to the Merchants
Association in New York. that If the
money Of the country wherever boarded.
were at once put back to fulfill It's tuhc-
lions In the channels of trade there wouio
be within twenty-four hours an almost
comn,e.e RESUMPTION of business opera
tions.''
/. Il is understood uoon the situation tnus
adyerted to that attention converseo IN
the financial world during all of the past
week The seat Of the difficulty may De
the subject of constant and somewhat
Offering discussion. but the differences
old not check the diligent and powerful
efforts to remedy the difficulty. and the
declining tendency OF the premium on
currency was the index Of the growing
success of these efforts.
The premium on currency Is increasingly
understood to be in reality a discount on
bank checks, caused by the disiocatioi, !
of exchange operations, growing out OF
unset In banking affairs following the runs
on trust companies in New York. II IS
acutely-. observed, however. that the pay
ments for the currency and for the pre-
fniums in these transactions have Deen
made In certified checks on banks. and
that the proceeds of the transactions have
found their way into bank deposits. not
withstanding that the holding OF cur
rency was supposed to involve dlstfust
OF the banks. From this 1t Is inferred
that the conditions were Drec'pitated in
no small part by the deliberate boarding
of money on a large scale by speculators
who sought profit In the operation by
this means. Severe animadversion on
such a course of conduct is much heard.
1t is estimated, however, that the enect
Of the ruling premium on currency has
already been to draw out from boarding
a very large proportion OF the cash which
was Withdrawn from the New York trust
companies during the runs. and thus re-
store 1t to the channels of banking oper-
atiOnS.
Interior Banks Guilty.
Another factor in the depletion Of cur
rency which has received growing atten-
tion has been the sweep of resources in
the interior banks. where 1t has appar-
entity disappeared in large part as COM
pletely from the channels of the circula-
ton as the sums previously hoarded in
New York
The condition Of the interior echanges
on New York reveals this fact. Deposits
OF interior banks in the New York banks
have been drawn down to such an ex-
tent that exchange on New York is almost
unobtainabie at many important outside
centers Remittances to New York In pay
of obligations are correspondingly diff
ffcuit. and are made in many instances.
are deposited In New York they are ac-
cepted only subject to collection, and this
involves a delay to await receipt of cash,
as deposits in New York are inadequate
to meet them. Criticism has been heard
that this condition is due to heavy ac-
terror banks. which were prompted as a
precautionary measure against the
dreaded shock of the original disturbance,
but which. it is understood, has been re-
garded as excessive.
Real Money Increase.
1t is notable that the seeming famine Of
currency exists in the face of an actual
volume of money in circulation or avail
able for the circulation. larger than ever
before. The monthly statement Of the
Treasury Department showed the amount
of all kinds of money in circulation on
November 1 to be 81. $40. s6s 900. which
was increased, compared with October 1.
Of upward Of $75.0O0.OoO. represented
largely by the deposits of government
funds which were made with the banks
after the crisis developed in October.
Since that time receipts from abroad Of
upward of 5000. eco of gold and rapid
ally replenished the November l supply.
With the stream OF incoming gold running
still at full tide early relief is looked for
from the present condition Moreover. with
the first evidence of distinct relief. 1t Is
expected that all barriers will quickly fall
which are at present withholding cash
from the channels of activity, and the re-
turn flood. which Is coming with rush.
The time when this will happen depends
on a state OF mind OF the whole people
rather than on events in the material
world. The happy and prompt results TO
flow from the attainment OF the state OF
mind. which are 80 conciseiy depicted by
the words Of Secretary Corteiyou. are 30
obvious that hope is strong that will
come at an early period, and 30 release
the country from the worst Of its present
embarrassment, arrest the harm that is
being done and leave the way open for