New-York tribune., 1907-11-01
BANKS ACCEPT OFFER
Taking out More Circulation at DIR.
Ridgely'S Suggestion.

Washington, Oct. 31.-Treasury officials are
agreably surprised the number of banks through
out the country which have already indicated their
purpose comply with the suggestion OF Controller
| Ridgely that additional circulation be taken out.
! Although the suggestion made only yesterday
| afternoon g large number of kilograms re-
| ceved at the department early as O'Clock this
| morning asking for additional circulation varying
! in amount from a few thousand dollars to $4,000
! 600. George T. Roberts formerly director of the
\ mint and president OF the Commercial National
Bank of Chicago is here, and has engaged 81, ,000-
| 600 additional circulation for his bank. Sol Wex-
Ter, vice-presdeut of tho Whitney Central National
Bank of New Orleans, is also here. and is making
| arrangements to increase his holdings materially
Other prominent bankers through Washington rep
resentatives arranging deposit the necessary
securities preparatory to taking out national bank
notes TO the limit of their capital stock The Con-
troer has in his vaults national bank currency to
the amount Of S167.000 600, and while considerable
proportion Of this amount belongs TO banks that
have already reached their limit under the law a
large IS available for banks that carry a COM
paratively small amount when compared with their
capital. One large New York bank could under
the law, 1t is said take S10O0O.000 additional
circulation. and in all probability will soon ask for
material increase. Mr.. Ridgely to-day expressed
the opinion that within the next ten days the out
standing circulation Of national banks will have
Increased by from S25,000.0O0 to $4,000, 900 and
possibly much larger sum-
There indications that many banks having no
United States bonds hand TO deposit as security
for circulation arc borrowing them from other
banks that have a surplus have already reached
their limit. In many instances these requests for
accommodations OF this character are being prompt
ly complied with. and there seems to be a general
inclination among banks assist one another In the
effort TO increase the amount of national bank cir
culation.
Sol Wexler. in effort TO devise plan by
which cotton exporters could get prompt cash re-
turns from cotton shipments. said to-day:
The present situation can be relieved in bn, two
ways: First, by the restoration OF confidence and
the return of money which has been withdrawn
panic, and, second, by the rapid export OF our cot
ton. wheat. provisions and other products create
balance OF trade in our favor and make impoTta-
uon Of gold in large quantities possible.
Inc prompt and wise action OF Secretary Cortel-
you; AIDED by Mr. Morgan and other prominent New
YORK bankers; had gone far toward restoring
confidence and money is again being redeposited in
the strong institutions of the country.
me second situation Is more difficult of solution
owing 10 the necessary delay IN transmitting bills
of exchange 10 Europe and the time required FOR
the purchase and shipment of the gold this
increasing their circulation. with the assistance Of
the Controller and the Secretary OF the Treasury
exchange bills TO New York without requiring cur
Tency for the entire amount New York can. in
turn, these bills reach the other side
import gold and then transmit currency quaint
country Some effort is being made by large cotton
houses 20 have their foreign correspondents de-
posit funds in foreign banks subject TO cable
transfer against advice OF documents deposited in
Southern banks with cotton bills OF ladins attached
10 come forward Immediately. but In my opinion
this transaction will not be made extensive
scale. However willing the Secretary the Treas
ury may be 20 assist the exports of agricultural
products and the importation OF gold. I do not be
eve that there !s anything that he can do that is
practical and within the law until such time as
Treasury balances have been Increased 20 an ex-
tent TO enable him 10 make large deposits of gov
eTnmeut funds in export points, such New
leans. Galveston and Charleston, 10 enable
banks in these centres to await the arrival
bills in Europe and the bringing back Of gold
against them.
New York assist the Southern banks by cred
ting their accounts daily receipt of telegraphic
information 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 accounts to
interior banks throughout tho country. such trans
actions requiring currency under existing con-
ditons, and merely bridging the three or four
days time required while the foreign exchange is
in transit in this country. There be per
manent for the constantly recurring scarcity
Of currency at this of the year until there
has been a decided reform of currency system
either by adoption of the bill proposed by the
rency commission of the American Bankers Asso-
ciation by the establishment, under proper safe
guards against politics and partsanship of
bank.