The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-12-09
Outlook Is Most Favorable, and
Confidence Is Quite
Restored.
PLETHORA OF MONEY IN SIGHT
Bankers Do Not Think Congress
Will Pass Currency Bill
This Session.

j NEW &1OltN, OeCGIIlDeC III
events of the past week in the financia
! world have been such as usually maxi
1.-THE graduai return of the restoration
OF normal conditions In the banks. Th,
I decision OF the Secretary Of the Treas
lry to issue only Si000O000 OF thu
$50. 100000 of the new securities which
| he expected to Issue II conditions re.
| qujred; the disclosure of unusually
strong reserves by country banks re-
| Porting to the Comptroller of tile Cur.
rency, the decline in the currency
premium and the. Improvement In the
( New York bank statement have all
been features of the week which Have
tended towards stability and renssur-
ance. The action of the Secretary OF
the Treasury in limiting the issues of
securities was a part of the original
Tlan recommended to him to meet the
situation by a resolute and adequate
measure, ,but to carry the execution Of
the measure no further than necessary.
The limit. of the Panasa bonds
to $25.0O0.O00, and the one-year GER
tificates to $15,00o,0OO will simplify the
problem of the Treasury management
and money market conditions during
TIL, spring.
Much Money in Sight.
1t is anticipated by far-sighted
bankers here that there will he a
plethora of money soon instead OF q
dearth, and that 1t will be necessary to
reduce in some way the large volume
of currency which has been brought
into use during the crisis.
The increase in money in circula-
ton outside the Treasury. as shown
by the monthly statement of the Treas
ury Department of the 30th of No
vember. was sS11,S7o,ss7.
OF this amount the increase Il,
gold in the country is computed n.
about S72,0O0,000, including domestic
production as we'll as Importation from
abroad
The other principal form of increase
is in bank circulation. in witch an
increase of s7,533,521 was obtained by
the disbursement OF bank notes held
in the Treasury cash. and S46..3I,220
was obtained by actual increase Ill
outstanding.
Danger Of Banl>-Notcs.
There have been fears in SOME quar-
tiers that if anything approXimatins
in new bank.notes were
issued upon the security Of the new
one-year certificates, the resulting in
] 81
amounts after the credits established
by the crop movement were exhausted.
This danger will be reduced to mini
mum by the relatively small issues
made by the Treasury. and II small
a:aounts In gold should be exported il
is felt that they could be spared. in
view of the large gold resources in the
to which President Roosevelt
called attention in announcing the new
loans. The total gold in the country
by the last Treasury state
ment issued is s1,561.7l4,719 which is
equal to more than so per cent. of the
total money in circulation. Some
further increase in bank circulation
is expected here upon the Panama
bonds and the Treasury certificates,
but it is believed that the bonds will
be deposited in many cases as security
for the public money which has been
left with the banks. and will not be
employed as a basis for circulation
untll the one-year certificates are can
celcd In the spring, when money with
drawn from banks by the Treasury forI
the redemption of the certificates will
release the bonds. and the latter cam
then be substituted for the certificates
as security for circulation.
III TINS proves to be the case the In
crease in bank circulation will not lie
very great during the next few
and may even turn downward
as soon as 1t becomes apparent that
the banks have large accumulation
OF cash, for which there is little de-
mand.
Banks Arc Solid.
The reports of the condition OF the
national banks on December 80. which
are being published in various local.
ties, and are gradually reaching tho |
comptroller of the Currency, are verl-
Tying the anticipations Of leading
bankers, set forth Try the Associated
Press. a week ago. that large reserves
would be disclosed in the lnteriorI
banks, that the disclosures would tend
to restore confidence, and that the
excess reserves after making their
statements. A rough calculation OF
the reports of the Chicago banks, iu-
GLIDING some State banks indicates
reserves of nearly 35 per cent:
About the same proportion is re-
ported from New Orleans. and still
higher reserves at smaller places, |
where the law only requires 10 peri
cent, including deposits in reserve |
cities.
The fact that two failures Of ma
tional banks of a certain degree of I
Importance have occurred during tina
week without apparently causing aaY
shock to confidence even in their own |
localities, and still less In the Imam
,ial centres, is regarded here as an
other favorable indication of tho state
Of the financial market.
Increase of Cash.
The increase Of s4.G71,000 in actual
IN thn Na,t, nNlft oil n {r