The sun., 1907-12-29
CALL FOR GOVERNMENT FUNDS
BANKS HERE do NOT EXPECT
A HEAVY DRAIN.

In some Cases 40 Per Cent. Has Seen Asked
For, but the Ranks with Small Federal
Deposits Are Not AHested-WeeISly
statement shows Gain In Reserves.
The partial withdrawal oH Government
deposits which, as stated in THE SUN yes
tsrday, 10 necessary in order to enable the
Government to meet extraordinary ex-
pendihIrss OF the Rrst Of the year was be-
gun yesterday. Banks in this city received
notices 10 return a part Of the moneys de-
posted with them in ten equal instalments
on ten successive days. beginning yesterday.
The aggregate amount called in this city ia
unknown, for not the sI Ightest information
in regard to the call was obtainsble in any
Government circle. In individual instances,
however, IL is known that the Department
called 10 per cent of the deposits. The
bank statement yesterday showed total
of $4,000 900 Government deposits in New
York banks.
lf the 10 per cent ratio OF withdrawal
affected all the Government repositories in
town the call would transfer froms the
banks to the Government S7.sOO,OOO. II
was learned, however. that 70 call was made
on some Of the banks with small Govern
ment deposits. 1t was addressed princi-
pally TO the large institutions which worked
with Secretary Cortelyou in the efforts TO
stop the panic in the critical week of OctO-
Der. II was we'll understood at the time that
the Treasury Department considered many
Of the large deposits made in these institu
tions as temporary. and now that the
money situation has greatly improved the
return OF the amount requested ny the
Department will have no adverse effect on
the situation.
A prominent Clearing House banker esti-
mated yesterday that no more than sS,OOO.-
900 altogether would be paid into the Sub
Treasury under the Secretary's call. Since
the repayment is spread over ten days.
the call, will take out not more than half
a million a day. and there is every reason
to expect that receipts from the interior
will more than make good the loss to the
banks on payments to the Government
Bankers yesterday concurred in the state
ment that the return movement Of the large
sums sent to the interior had set in. All
the banks with large numbers OF interior
correspondents have received substantial
Interior bankers appear to have recovered
from fright and to be sending funds here
in order TO take advantage Of the still high
interest rates.
The weekly bank statement yesterday
was surprisingly good. IL showed an in
crease OF S1l $4,000 in surplus reserve.
leaving the deficit at $40. 17O. 600. as com
pared with S4.OOOO 600 early in the month.
The percentage Of reserve was increased
from % per cent. to 23OS. The statement
showed a decrease OF Si5.O0OO0O in loans
aud an increase Of So $4,000 in cash hold
ings
WASHINGTON. Dec. 2s.-The information
was given AZ the Treasury Department to-
day that no general call will be issued in
the very near future for the Withdrawal Of
the Governments deposits or any part
or them from national banks. There have
been reports for the last two days that such
a call would be- issued. but il il does come il
probably will not be within the next fort
night. and possibly not within the next
month. Whenever a general call ia issued
two considerations may be the cause Of H.:
First. the passing Of the period Of tight
money in the business world and secondly.
the need Of the Treasury for funds to meet
current expenditures.
For the present the Treasury will with
draw not more than about 81 900 from
depositing banks. and that only from such
institutions as have been consulted indi-
vIdually in advance and are in a position
TO return a part Of their deposits Of public
money to the Government.
The Treasury deposited extraordinarily
large sums of public money in the national
banks in November to relieve the financial
stringency. This reduced the available
cash balance in the Treasury to about
$4,000. 900, and as there has recently been
marked falling on in receipts from customs
the working cash balance at the close Of
business to-day dropped to about S2,sO0,OOO.
This small margin need not be increased
by more than few million dollars TO meet
all the needs Of the Government. in the
opinion Of Treasury officials and this can bs
done by Withdrawals from certain banks
,Uitho,Ie tha aliHhfaat incOnvenianCe