The Montgomery advertiser., 1907-12-09

total gold in the country reported ny the last Treasury statement is ti,ee,,c 71ATI9, which is equal to more than ~ per cent of the total money In CIT cuiation.
 Some further increase in bank circu- lation is expected here upon the sta. anna bonds and the Treasury cerun cates. Out 1t is believed that the ponos will be deposited in many cases as se- curity for the public money whicn has been left with the banks and VIII not be employed as basis for circuiauon until the one-year certificates are can celled in the spring, when money witn- drawn from banks by the Treasury for inc redemption of the certificates VII, reliese the bonds and the latter can the nbe substituted for the certi. fcates as security for circulation. 1T this proves to be the case, the increase in bank circulation will not be very great during the next few months and may even turn downward as soon as It hecomes apparent that the banks have a large accumulation of cash for which there is little demand.
 The reports 1.-the condition or the national banks on December 5. which are being published Tn various @ ,oea.- ities, are gradually reaching the Comp trolier of the Currency and verifying the anticipations of leading bankers set forth by the Associated Press week ago. that large reserves would be disclosed In the Interior banks, that | the disclosures would tend to restore | confidence and that the banks would be willing to release such excess reserves after making their statements. A rough l calculation of the reports of the Chi
 cago banks. including some State l banks, indicates reserves of nearly 35 per cent. About the same proportion | is reported from New Orleans and still | AI I'm TaI0
 where the law only requires IS per cent
 including deposits in reserve cities.
 The fact that two failures of national
 banks of a certain degree of import
 ance have occurred during the week, | without apparently causing any shock
 to confidence. even in their own local ities, and still less In the financial cen lters,, is regarded here as another favor
 able indication of the state of the f- flencial markets.
 The increase of sA671.o00 in actual cash in the New York clearing house
 banks is regarded here as one of the
 symptoms that the currency crisis as
 such is, practically over. The reduc-
 ton of loans by about s1f.600, 900 Is also
 considered a favorable indication of di-
 unfinished pressure. The increase in the
 required reserve by $6.779.000 reduces
 the deficit in New York reserves to
 $46.2 900 and part of this will be GOV.
 cred by gold yet to arrive.
 Not much is expected among New York bankers in the way of currency
 legislation by. Congress at the presen session. The fact that the Presiden
 tiaI election is approaching and tha there Is wide diversity of view as t, , the proper form of new Legislation { leads to belief that the subject will , be only considered. without final actiol , during the present session. The neces , sity of some important measure of re [ form Is quite generally recognized. bu } the growth of sentiment for e stron, , central bank is checking in some de : gree the movement for giving wide } powers of note issue to the existing na 1 tional banks.