Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-17
HOAROS SOLE
CAUSE Of
CRISIS
SECRETARY C0RTELY0U
POINTS OUT REMEDY
Restore Money 10 Channels Of
Trade and Complete Re-
sumption Of Business VIII
Follow In "a Hours.


my Morning journal Special Leased wlreI
New York, Nov. 1G.-'f believe
said Secretary Corielyon to the Mer-
chants association IN New York,
thai 81 the money of the country
wherever boarded were at once put
bach 10 fulnil rs functions In the
channels OF trade, there would be
within t~wenty-fOur hours an almost
complete resumption OF business ops
e~raiions." II Is pOn the situation
thus adyerted TO that attention CON.
vefged IN the financial world during
al of the past week
The solution OF the difficulty WAS
the subject Of constant and somewhat
differing discussion but the differences
did not check the diligent and power
full efforts to remedy the difficulty and
the declining tendency Of the premium
IN currency Is Increasingly understood
10 be- In reality, a discount on bank
checks. caused by tho dislOcation OF
exchange operations growing u of
the widening effects or the shock OF
The upset Ia banking affairs following
The runs on trust companies In New
York.
II is actually observed. however. that
the payments for the currency and for
the premiums IN these transactions
have been IN certified checks on banks
ana that the proceeds Of the transac-
lions have found their way into bank
deposits, Notwithstanding that the
holding Of the currency was supposed
10 involve a distrust of the banks.
FRI IN this IL Is inferred that the condi-
tiOns were precipitated Ia no small
part by the deliberate boarding OF
money on a large scale by spcculat-
who sought TO profit ia the opcr-
alton. Severe animadversion on such
y eource Of conduct Is much heard. lt
Is estimated. however. that the effect
the ruling premium on currency has
already been 10 draw out from hoard-
Ing a very large proportion OF the cash
which WAS Withdrawn from tho New
YORK u companies during the runs
aud restore Il TO the channels Of bank
operations.
Another factor in the depletion Of
currency which has received growing
attention has been the movement OF +,
money nio interior banks wherc 1t has
apparently disappeared ia large part
ls o mpleiely from the channels Of tho
lreuiation as the Euns previously
loardcd In New York. The condition +,
III tne Interior exchanges In New York ,
'eveals tits fact. Deposits OF Interior
ranks ln the New York banks have
drawn 90 such an extent TIM cN. I,
mango on New York D. almost unob. i
as many important outside N
cntors. Relnittances 10 New York IN -
ment OF obligations are rorre- ],
p~pnuinglN difficult and arc made. IN ~
instances by checks ON interior =
hnlSs. when these are deposited IN !,
York they are accepted only sub H.
lo collection and this Involves n y.
clay 90 await receipt Of cash ne de-
osits in New York are Inadequate To
Ieet them. Criticism IS heard that y,
condition H. due TO heavy arcumu- a,
Of cash Ia the reserves OF In. ra
'rior banks which were prompted as y,
precautionary measure against the IA
shock OF the original disturb -,
nee hut which, 1t is urged have boon N
1t ~ notable that the seeming fam. 81.
IL Of currency exists IN the face of an r.,
lnual volume Of money IN circulation a
: available for circulation, larger than
before. The monthly statement +
the treasury showed an amount L
All kinds OF money in circulntiun
November I 10 be $2,STe. 1858, goo
hich was an Increase compared with
| Of more than $4,000. 600 -,
presented largely by the deposits Of "
'vcrnmcut funds which were made
.th The banks after the crisis deVel-
led In October. Since that time re- oil,
.ipts from abroad OF more thai S33.- =,
10000 Of gold and "a rapid cNpau- u,
ot bank notes has literally re- sn
iiHlt'N va" NnNtnlhtl Supply D..
ith the stream OF Incoming gold run y.
atti az full tide early relief Ia ~
for from the present condition. ~.
ofcovef With The hrst evidence Of ~,
stnct rolief u is expected that an !"
.friets VIII quickly ram which are az -
teent Withholding cash from che ''
nnnels Of activity and thc return OF ,nl
e. gold VIII come with u rush. The u'
ne when this VIII happen depends an
the state Of mind OF the whole pco- ''
rather than on vents in the ma
.ihl world The happy aud prompt We
suits te follow from the attainment NV
This state OF mind which are 50 an
ncisslY depicted hy the words OF ~
Cortclyou are so Obvious
lt hope o. stronE that b. Hli come m
am early hour ANA SO release the IL
dhiry from the worst 81 Co. pres
mhafruEsm ont. arrest the harm U
no 81 being dom and leave thp waV
fof immediate repair.