The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1907-11-07
THE GOVERNMENT TO
OPEN ITS VAULTS
Offers to Add s3oO,OOO,ooO to Bank
Circulation.
MINTs ARE WORKING OVERTIME.
Plan to Loosen Millisns in Ready Cash
by Accepting Other Securities in
Lieu of Government Bonds Now Held
at Washington to Secure Federal De-
posits in the National Banks.

Washington Especially Secretary
Cortelyou had a conference with
Comptroller of the Currency Ridgely,
and took up the matter of increasing
the national bank circulation in every
way possible to give relief as quick
ly as It can be done, not only in the
large cities requiring currency for
payroll and such purposes, but also
I'm country districts where the banks
have difficulty in obtaining currency
from their reserve agents. There are
a large number of banks that have
left more than the maximum amount
OF circulation outstanding. Many OF
these banks have government bonds
on deposit to secure government de-
posits. Mr.. Ridgely is urging these
banks to substitute other bonds ac-
ceptable to the Secretary of the
Treasury for their deposit security
and use the government bonds thus
released in taking out increased cir
culation. There is a possibility of
increasing the circulation from $751;
100000 to S20,000,000 in this way,
with circulating notes actually print
ed and now on hand in the vaults of
the Comptroller's office. There are
over $90,000,000 of government
bonds in the hands of the Treasury
to secure government deposits, and
1t will be possible to increase the
national bank circulation by more
than $300,000,000 before the limit
of capital stock is reached. The tele-
graph and telephone are being used
to urge the banks to take prompt ac-
ton in this matter.
The conditions in the Treasury De-
partment are very satisfactory in view
of the large disbursements of the
past week.
The Director of the Mint has been
instructed to work to the utmost ca
pacfty the mints at San Francisco,
Denver and Philadelphia for the coin
age of the large amount of bullion
on hand, and every other branch of
the Treasury Department that can
in any way afford relief is working
overtime.
Secretary Cortelyou conferred with
various representatives of the cotton,
sugar, grain, lumber and other large
industries, with view to facilitating
movements that will effect substan-
tial easing OF the general situation,
and is much encouraged by the re-
suits of his efforts.
Comptroller Ridgely issued an Of
fetal statement which says:
THE Comptroller's Office will in
every proper way facilitate the i'm
mediate increase of national bank
note circulation. With this end in
view all such national banks as have
government bonds in the hands of
the Treasurer of the United States
to secure deposits, and also have any
available capacity for increased cir
culation, will be allowed to substitute
other bonds satisfactory to the Sec
retary of the Treasury, as a basis for
government deposits, provided the
government bonds thus released are
used to increase circulation.
This rule will apply not only
where the bank transferring the
bonds from the deposit account takes
out the additional circulating notes.
but also where an arrangement can
be made for any other national bank
having capacity for increased circu-
lation to take out the additional
notes
National banks are urged to take
this question up Immediately with
the department by telegraph and take
out the additional circulation as rap
idly as possible. The comptroller's
ofiice will be glad to furnish what
ever information Is needed in regard
to circulation printed and on hand
and bonds available for this purpose.
(Signed)
WILLIAM b. RIDGELY,
Comptroller of the Currency"