The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-11-08
Trying to Dig Out From a Mass
of Correspondence
FLOOD OF SECURITIES
Pouring in to Take the Place OF
Government Bonds.
One Bank Has Taken Out 3d.
100000 More Circulation.

Washington, Nov. S.-There is no
ticeable congestion in the treas
sury department in the nan
ding of securities offered oS
banks in substitution for government
bonds now being deposited as security
for additional circulation. The cor
respondence on the subject is almos'
unprecedented and although the OF
ficials apply themselves unremittlngiS
to the work until late at night, the
4 volume of work increases rather thar
4 Ediminishes.
The amount of additional bank
notes being shipped is daily increasing
and the treasury officials are greatly
encouraged in the belief that the crisis
in the money stringency has passed
and that a gradual relaxation in the
tension that has existed for three
weeks may be confidently expected
The National City bank of New York
has arranged for $1,00O,OO0 addition
al circulation, making s3.000,OOO for
this bank within the last week.
AT the conclusion of the cabinet
meeting today Secretary Cortelyou
stated that the decision of the financial
situation had occupied an important
place during the session, that the
treasury department was doing every
thing in it's power to relieve the situa-
ton, and that conditions seemed to be
improving, particularly in New York.
Gold Engagements $4O,OOO,O0O.
New York, Nov. S.-The advance in
the discount rate of the Imperial Bank
of Germany from ~ to Z II per cent,
announced today from Berlin, is fur
ther evidence of the determination of
European money centers to protect
their gold stocks against depletion by
the United States. The advance was
fully anticipated as Governor Koch of
the Imperial German bank said a
week ago that an increase in the Eng
lish bank rate would lead to similar
action by Germany and his course yes
terday in calling a meeting of the d.
rectorS of the Imperial bank for to-
day definitely foreshadowed the adj
vance
The rate as now fixed is the highest
the German bank has ever had. Not
only has part of the recent American
gold enga agements been taken directly
from Germany, but the German stock
of gold has been depleted indirectly,
as the American engagements at other
European money markets have result
ed in large exports of gold to England
and Holland.
The American gold engagements al
ready placed in Europe approximate
$4,000, 1000, so that the present in
creases of foreign bank rates do not
operate SO seriously as they might
have done during the early days of the
money stringency. About 100000, 900
of gold has already reached New York
including the LuSitania's stock of S12,-
1000 brought ashore today.
Aside from the gold movements the
financial situation shows an absence of
notable developments and steady ten
dency back to normal conditions.
Gold Transactions in London.
London, Nov. S.-The Bank of Eng
land today received 100000 pounds in
American eagles from Paris and $780,
600 pounds in bullion from elsewhere
on the continent and sold POI, 900 in
bar gold for shipment to the United
States.
Drop in Copper.
New York, Nov. S.-All grades of cop
per dropped a quarter of a cent today.
Bank Clearings Fall or
New York. Nov. s.-Dun's Review to-
morrow will say:
Bank clearings reflect the restriction
In settlements through the banks, total
. exchanges this week at all leading cities
3n the United States being s. 141, 297, ,313 !;
20 per cent less than last year and 1876
per cent less than in the corresponding
week of 1905. There is loss at nearly
every city compared with last year,
and at many of the leading cities COM
pared with 1905. The loss at New York
still reflects stock market conditions TO
some extent; at home cities in the west
the loss is small.
Rumors of Prosecutions.
New York Nov. S-ReportS that Grim
tnal prosecutions as result of condi
tions disclosed by the present banking
situation in this city are imminent have
gained widespread circulation in finan-
cial circles. 1t is said representatives
Of the comptroller of the currency who
have thoroughly investigated the affairs
of two national banks which have been
prominently mentioned in the present
trouble, found conditions which led
them to make unusually minute re-
ports, the precise nature of which has
not been disclosed.
When United States District Attor-
ney Stimson was asked about tho mat
ter he said that no decision had been
reached to prosecute any one in connec-
tion with the recent bank troubles He
said also that any such decision would
be made here and not in WASHINGTON.
Mr. Stimson said:
"Since the banking troubles in this
city became acute in the last three
weeks my office has followed them with
the same care that it always tries to
give to all matters within its jurisdic-
ton. AS yet there has been no decision
or determination arrived at to prose-
cute any individual whatever, and any
statement to the contrary, whether in
q newspaper or elsewhere is wholly
false