The news-democrat. (Providence, R.I.) 1906-1909, 1907-12-31

/, comoany situation reached one OF its
most critical stages
| IT was not until 10 days later. however.
tnat secretary Cortelyou announced his
| plan Tor drawing money from boards ana
| permitting an Increase in the bank note
circulation by the offer 10 the public of
socoW,oO In 2 per cent bonds for the
construction OF the Panama canal and
| siUVo'"" IN one-yesr certificates bearing
interest at 3 per cent.
This announcement, accompaniad h,. a
vigorous letter from President Roosevelt.
did much, In the opinion OF many bank
| ers' 10 stay the panic. 50 that eventually
II was necessary TO issue only about sX :
100000 of the bonds and $4,000. 900 In
the one-year certificates
Nhne the measures tended to restore
| confidence to a certni ndegree. there was
no indicauon OF the renewal of business
scuVify for some weeks. A premium upon
currency which had run as firh az 4
per Cert. continued i'm force all through
November and December although the
rate declined materially after the closing
'i the subscriptions for the government
sslies on Saturday. Nov 20.
The demands upon the New York hanks
were swelled for a time by the taking
over OF loans from trust companies which
were under pressure. which increased the
uenclt IN the proportionate legal reserve
The deficit in these reserves which rose
TO s5ilOS.60 on Nov. %, was after that
date reduced progressively each week.
uh'ii IL stood on Dec. 2s at only $2ol10,35O
NATIONAL BANKS STRONG.
The national banks have stood up under
the pressure much better than In the
early stages OF the crisis of 1898. The sus-
pensions sI , at that time were about $50 in
the three months or June, July and Au-
gust, although 81 banks afterward re-
sumed business
me number OF national banks suspen-
sions hardly equalled a dozen during the
recent panic. the most important being
that OF the National Bank of Commerce
OF Kansas City.
Great progress has been made In tho
number and capitalization of national
banks In the succeeding eight years,
largely as the result of the Gold STAN
dard law of March H. 1900. which per-
mitted the Incorporation of banks with n
minimum capital OF s25,0oo and changed
the terms upon which circulation might
be issued.
The number OF national banks incor-
porated from March IL. 1900 TO Nov. 30,
1907, was 1892, OF which 24OI were OF capi-
tai less than $4,000 and 1921 were OF the
capital required under the previous law.
The increase In small banks did not af-
feet the amount of capital so much as il
combined capital OF the small banks be-
ing sSc.6g.5 800. while that of the new
banks with capital OF $4,000 or more each.
amounted to si5s, ,7s7 500. Not all OF those
institutions. however, were entirely new
creations. state banks were converted d.
rectly into national banks 10 the number
OF AS, and state and private banks we're
reorganized into national banks TO tho
number OF 1iss. leaving 3D1e as the num-
Der OF new ORGANIZATIONS
The number OF banks on Nov. % 1907,
after allowing for mergers and liquda-
tions. was 66oS, aud their authorized CAPT.
tai was 500, .755. Thus since the latter
part OF 1899 the number OF national banks
has Increased by more than 1000. or more
than - per cent, while their capital has
Increased by about S3O3ooo.0oo. or almost
exactly 50 per cent.
mellow OF GOLD.
The Official figures Of the treasury
showed imports OF gold for the month Of
November amounting 10 s63. .463. .03s. which
were more than twice the total importa-
tions for tho preceding 10 months. The
remainder came early IN December The
inward movement of gold was facilitated
by the sharp arrest Of imports OF luxu-
ries and a combined effort by producers.
railways and bankers 10 ship promptly TO
Europe the large crops OF cotton. wheat
and other farm products Of the autumn
season.
Imports Of merchandise. which had
been "a much as sl25.sOs.0i3 In August.
fell 10 an average OF about sl0e 100000 for
:Ss TAX. three months, sndt.g with Ato,-
7ss.i09 for November. Exports ~ msr-
chandise. on tho other hand. which had
been as low az si27. .270.4i7 in August. sd-
vanced 10 siso25s.Os5 in october and
s20i. .tiiS60 in November.
From another source the volume of
currency In circulation was swollen by
The Inrroa-e of dannaila OF nuhlIc rronox