The Birmingham age-herald., 1907-11-01
Over S25,OOO,OOO Is To h- rive At Once and Relieve
 the Tension
BANK NOTE CIRCULATION
 WILL HELP SITUATION
Acting Under Comptroller Ridgely's Suggestion the Banks Will Increase Supply Of currency-Cotton
 Movement Is Aided.

Rew York, October Manifestations that the available supply of cash would be materially increased within a short time, both by imports of gold and the increase of the bank note circulation and that the movement of the cotton and grain crops would be facilitated in every way possible, with the result of increasing our credits abroad, were the salient features of to- days financial situation. It seemed to be recognized everywhere that the acute stage of the crisis was over and that all that remained was to obtain sufficient cur rency to resume currency payments upon a broad scale and thus to restore con ditions prevailing before the crisis. The engagements of gold made in New York, Chicago and elsewhere brought up the total import movement within the past week to $25, 100000. As the amount of gold viii afford q basis of credit to four times the amount, or about s95,oO0,O00, will fin itself afford much relief to the existing pressure. The action of the Bank of Eng land in raising it's discount rate from 4l5 to 5ls per cent was in accordance with expectations in conservative circles. The fact that the increase was not made to G per cent and that the English rate re- mains 1 per cent below the German rate is accepted as an indication that the stu- ation at London is not considered acute.
 Banks Respond Promptly.
 The prompt response Of the national banks throughout the country to the sug- gestion of Comptroller Ridgely that they
 
 as largely as possible to secure circulation and substitute other bonds for those pied. . against deposits. Qf- SsSailc. money promises a considerable in case in tlies available stock of currency. The esti- mates of an increase in the bank note circulation of sSO0Oo,oOO is considered well within the probabilities. It will require time, however. in some cases for the banks to obtain proper bonds to substi ute for their United States bonds MT Vanderlip. vice president of the National City bank made the fruitful suggestion today that the savings banks would at once improve the general situation if they would sell their holdings of United States bonds to the national banks. Even in cases where theygdo not care to sell it is believed they will lend the bonds to the national banks, as has often been done the past.
 Movement of Cotton.
 Interest continues to center in the movement of the cotton crop from New Orleans and other southern points which Is so essential to provide bills against the imports of gold Secretary Cortel- you. according to Washington dis patches today, was disposed to increase .f dc in, flan ern bank as rapidly as such funds be- came available. This will supply the banks with the stock of currency so much needed to handle the cotton crop and will enable them to await with less embarras ssment than otherwise, the arrival of their cotton bills in Europe and the bringing back of the gold.
 A committee of New Orleans bankers which is in Washington, has suggested that the New York banks can ease the situation by giving the southern banks credit for checks in foreign banks for Warded as soon as they receive tele- graphic advices of the amounts. This will enable the southern banks to check against such balances in payment of collections and in making remittances to interior banks throughout the coun- try.
 Currency Reform
 If is noted with interest by leading bankers here that the present scarcity of currency and the recourse which has been had to the national bank circu- lation is arousing unusual interest Tn the plan for currency reform which mas been indorsed by the American Bankers association. This plan was adonted in December of last year, aft pr consultation with representatives or the New York chamber of commerce and which was presented to congress at that time. The plan did not re- ceive the definite approval or the American Bankers association until the meeting at Atlantic City in Sep tember last, but at that time 1t was indorsed by a unanimous vote. me committee which framed the measure were continued with authority to take further action. It has not held meet inc since the convention at Atlantic C,ity. but some of the western members are strongly desirous that such meet ing be called at an early date In oroer to bring the fleet properly before Congress while public opinion IS cfll,i