The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1907-11-21
H0ARD[D
MONEY F.!
Financial Troubles will be Over
When Stockings Give Up
Their Cash.

sald secretary Corteiyou to the Mer
chants association in New York,
THAT ii the money OF the country,
wherever boarded, were at once put
back TO fulfill its functions In the
channels Of trade, there would be
within twenty-four hours an almost
complete resumption of business op.
erations.
II is upon the situation thus ad. |
verted to that attention converged |
In the financial world during all OF |
the past week. The seat of the diff
entity was the subject of constant and
somewhat differing discussion, but
the differences did hot check the dill
igent and powerful efforts 10 remedy
the difficulty, and the declining tend.
ency OF the premium on currency
was the index of the growing success
of these efforts. The premium on
currency is increasingly understood
to be, in reality, discount on back
checks, caused by the dislocation OF
exchange operations growing out OF
the widening effects OF the shock OF
the upset in banking affairs affecting
the runs on trust companies In New
York.
1t is acutely observed, however,
that the payments for the currency
and at premiums In these transac-
tions have been In certified checks
on banks and that the proceeds OF
the transactions have found their
way into bank deposits, notwith-
standing that the holding of the cur
rency was supposed TO involve dis
trust Of the banks. From this it Is
inferred that the conditions were
precipitated In no small part by the
deliberate boarding Of money on q
large scale by spectators who sought
to profit in the operation. Severe
, animadversion on such course o
, conduct is much heard. 1t is esti
; mated, however, that the effect o
the ruling premium on currency hal
= already been TO draw out from hoard
ing very large proportion of tn
cash which was withdrawn from th
Y New York trust companies durinI
the runs, and thus restore II TO til
0 channels OF banking operations.
e Another factor in the depletion G
4 currency which has received CROWN
4 attention has beer the movement c
n money into interior banks, where
e apparently disappeared in large pdr
[ as completely from the channels {
a circulation as the sums previousl
e boarded in New York The cond
e tion OF the interior exchanges o
a New York reveals this fact. Depo
Is its of interior banks In the Ne
# York banks have been drawn dow
to such an extent that exchange c
n New York Is almost unObtainable ;
N many important outside center
m Remittance TO New York in pa
~ ment of obligations are correspon
ne ingly dinlcult, and are made, in mai
I'd instances, 10y checks on interi
I'd banks. When these are deposited
IN New York they accepted only subje
,e to collection, and this involves d
n lay to await receipt OF cash, as d
In posits in New York are inadequa
as to meet them. Criticisms hea
Id that this condition Is due to hea
accumulations Of cash In the reserS
c- lof interior banks, which We
IN prompted as precautionary measu
he against the decided shock Of the I
he iginal disturbance, but which, 1t
H. urged. have been excessive.
70 1t is notable that the seemi
ed famine of currency exists In the 4;
cb of an actual volume OF money 10 c
MS culation, or available for circulate
he larger than ever before The mon
all ~ statement Of the treasury depa
in meBt showed the amount OF all kin
OF money In circulation on Nov,
he s2.s7G, IS. 900, which was All
crease, compared with Oct. /,
~ more than so, 900, 600, fepresen
.oh largely by the deposits Of goyernm
"a funds which we're made with
"a banks after The crisis developed
October. Since that time recei
-. from abroad Of more than S33, Oo0,
- Of gold and a rapid expansion
banknote issue has literally repl
ished the Mo- ! supply.
= With the stream of Incoming 8
running still at full tide, early re
+ is looked for from the present COT
- - tion. Moreover with the first
- dence Of distinct relief 1t is eKpec
that all barriers will quickly
-. which are at present withhold
- cash from the channels Of actis
and the return food will come n
a rush. Tne time ~ben this
-, happen depends on the state Of II
- OF the whole people rather than
events in the material world.
happy. and prompt results 70 fol
ews from the attainment OF this ST
.ub ment OF mind, which are so conci
cal. depicted By the words OF Secret