Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1907-11-29
CLEARING HOUSES
ACTING JUD|CIOUSlY
Native Son State Has Legislative
Committee. Which viii Rec
commend Amendments
OF Statutes Regarding
Banking Laws.


san Francisco. CAL Nov. 90
Money is again flowing into san
Francisco. The quantities of coin
coming this way are considerable and
this city is once more becoming the
great money center of the Pacific
coast in fact as well as in name.
While some Of the banks still find
the interior banks somewhat of a
drain on their resources, one leading
financial institution yesterday report
ed the receipt OF 100000 from
country banks.
Sbme of the banks have a great
deal Of money both here and in New
York and will be prepared to resume
business on a normal basis whenever
the holiday season for banks shall
have been brought to close. Among
the reasons why the banks have
been so conservative In the circula-
tion of gold is that they are prepar-
Ing to meet large tax payments when
they shall become due. Owing to
the tie-up in New York OF such big
balances of the San Francisco banks,
the local institutions have been OBJ
liged TO exercise unusual financial
skill In order to be able to meet all
emergencies. Then, too, the banks
in the clearing house have been OBJ
liged to exercise some foresight in
order to have sufficient coin on hand
to redeem that association when 1t
shall be decided to call them in.
Aonst l. 1sv~ &Jvdss.~
A leading banker who had been
commenting on the improved condi-
tions was asked: How and why Is
the situation betters' To which the
financier made the direct and con-
more money in circulation" The
banker added '1n nay opinion the
worst is over and unless the unfor-
seen happens 1t will be but a short
time until normal financial condi-
tions prevail"
New York transfers aggregating
$415,000 were received at the sub
treasury yesterday for local banks.
There were six subscriptions to
treasury certificates of indebtedness
calling for $4,000 in the aggregate.
Customs house receipts from du-
ties for the day amounted to $23,71s.
Bank Commissioners Garoutte and
Lynch held an Informal conference
yesterday with Attorney General
Wedd, the law officer of the state.
Today Commissioners Silver and
Sherrer are expected TO arrive here
from Los Angeles, and an important
meeting of the bank examiners will
be held. There are many questions
of interest to the financial world TO
be considered, and If possible deter
mined. The com mmissioners in the
north are not 50 thoroughly in touch
with the banking situation in the
south as are their associates, and
the same applies to the information
the members from the south have
in respect to the status in the north
ern part of the state. The commits
sioners desire to compare notes and
exchange views.
VIII Discuss Closed Bank.
Among the matters that win be
considered Is the California Safe
Deposit and Trust company. That
institution closed its doors the day
preceding the holidays and the bank
commissioners took charge of its af-
fairs While there Is no question as
10 the authority of the commission
ers to proceed as they have, inclusive
of their continuing to keep the bank
in their charge during the holidays,
ii Is desired to determine upon a
plan of action when the holidays are
at an end.
There are several laws on the
statute books relative to banks that
are imperative because of no penal
ty attaching for their violation.
Banks are expected, by the terms of
the banking laws, to keep reserve
of 20 per cent. There is no penalty
provided for their falling to do this.
State banks are permitted to invest
a certain portion of their surplus in
bank buildings. There is no penalty
provided for a bank that invests a
much greater sum than the law con-
templates In its premises.
Certain banks that would show
good surplus in normal times have
investments In school bonds irriga-
ton bonds and securities in other
improvements that indicate their
public spirit and which class of In
Vestments possibly should be encour-
aged The same securities at the
present time are in no special de-
mand and might not be easily con-
verted into coin. What the attitude
OF the bank commissioners should be
In relation to this class of securities
Is among the important questions 70
be determined.
In Harmony With Committee.
The bank commissioners. instead
OF being disgruntled at the appoint
ment of special legislative commit
tee TO investigate the banking situa-
ton and make recommendations for
the amendments of the statutes in
this relation, are in perfect harmony
with the committee and regard its
appointment as liable 10 do great
good 70 the financial interests. Here
tofore when amendments to the
banking laws have been recommend
ed TO the legislature By the bank
commissioners little benefit has re-