New-York tribune., 1907-12-02
TREASURY CONFIDENT.
Finanridl Situation Expected Soon
to Resume Normal State.

Washington. Dec. 1.-The close of the last week
found a confident feeling prevailing in banking
circles and the Treasury that the financial
situation Of the country would soon resume its
normal state The intervention OF the government
weeks ago. by which it proposed issue
Sl50s0r0 in new securities. accomplished the pur-
pose anticipated by President Roosevelt and Secre
tary Cortelyou in demonstrating the ability of the
Treasury TO relieve disturbed conditions. This re-
suit having been accomplished, the actual issues
cf securities Will be only about half what
was proposed. In respect TO this the present ad-
rninistrstion departed from the policy pursued in
1892 when measures of relief usually adopted
only when they became imperative It is felt at
the Treasury that the wisdom Of the new policy
has been vindicsted; that it better to take
resolute ard broad measures. even if they went
beyond the immediate needs of the situation. The
issues of the Panama bonds win be for the full
sneae0 which Offered. but the issues of one
year treasury certificates wiz not much exceed
100000 1t is probable also. that the issues of
new banknote circulation will fail considerably
within some of the earlier estimates, because Of
the abundance OF currency which viii be available
when currency payments are resumed by the banks
and exchanges resume their normal course Since
the Panama bonds VIII be held by the Treasury
in the first instance security for the public
money which is pail fer them and left deposit
with the purchasing hanks. tie bonds are not ex-
pected 10 be deposited TO their entire amount for
new banknotc circulation. They can be 50 de
rosite6 only By substituting other classes of bonds
rs security for deposits Of public money. While
fais would have been done if the new circulation
had been required 1t is now expected at the
Treasury that il viii be Gcne to anything like
the fur issue OF bonds. II public money is with
drawn from the banks in the spring, the bonds
viii lie released ard could be substituted as secu-
rfry for circulation issued against the one-year
certificates If the latter were then paid OF with
interest the date Of payment
The information reaching Secretary Cortelyou
and Controller Ridgely is very favorable to the re-
sumption OF cash payments by the banks as soon
IS ttc December payrolis have been disposed Of
It Is not believed there win be any disposition on
the part of Gepositors TO make run for currency
Bankers wfo have been in town have in many
cases reported cash I'm their institutions
much In excess OF legal requirements. Some banks
which are not In central reserve cities holding
cash TO as high proportion 80 or 80 per of
their demand liabilities Evidence that pressure
for currency IS diminishing is found in the state
men. of the Kew York Clearing House banks on
Saturday with its actual increase OF nearly g. CO.
no in cash and its reduction of the deficit I'm re-
serves by more than 81 900.od0 II this result has
been attained with considerable gold still on the
ocean and counting in reserves. it is believed
t.aa. ire statement of next week will make a stiIl
more fasc.zse showing With gold imports aggre-
galnS 81. eacoo. including ysls.S IS OK the way