The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-01
ACUTE STAGE OF
CRISIS IS OVER
General Expectation That the
Available Supply of Cash
Will Soon Be Increased.
GOLD ENGAGED ABROAD
SOME GOSSIP CONCERNING CUR
RENcY REFORM.

New York Oct 31.-Indications that
available supply of cash would be mater
tally increased within short time with
imports of gold and the increase of the
bank note circulation, and that the move
ment OF cotton and grain crops would be
facilitated in every way possible, with
the result of increasing our credits abroad
were the salient features of today's finan-
eial situation. It seemed 20 be recog-
nlzed everywhere that the acute stage
of the crisis was over and that all that
remained was to obtain sufficient cur
reney to resume currency payments upon
a broad scale and thus TO restore condi-
ions prevailing before the crisis.
Gold Imports.
The engagements of gold made in New
orE, Chicago and elsewhere brought up
the total import movement within the
past week to SO. $50 600. As the amount
OF gold will afford a basis of credit to
-FOUR times the amount, or about $4,000,
90, II VIII il itself afford much relief to
Inc existing pressure. The action of the
BANK or England in raising its discount
rate from AZ TO 5I9 per cent was in ac-
cordance with expectations in conservative
circles The fact that the Increase was
not made TO per cent and that the En-
gllsh rate remains l per cent below the
German rate is accepted as an indication
tnat the situation at London is not con-
Sldered acute.
Prompt Response.
The prompt response of the national
banks throughout the country to the sug-
sesuOn of Comptroller Ridgely that they
should employ United States bonds as
largely as possible to secure circulation
and substitute other bonds for those
pledged against deposits of public mon
e4' promises n considerable increase in
the available stock of currency. The es-
of an IN,
circulation of 100000 in considered well
within the probabilities. 1t will require
time, however, in some cases for the
banks to obtain proper bonds to substi-
tute for their United States bonds. Mr..
Nanderlip, vice president of the National
City bank, made the fruitful suggestion
today that the savings bank would at
add TO their circulation if they would
sell their holdings of United States bonds
To the national banks. Even in cases
where they do not care TO sell. it is be-
lieVed that they Will lend the bonds to the
national banks, as has often been done
in the past.
Movement of Cotton Crop.
Interest is continuing to center in the
movement Of the cotton crop from New
Orleans and other southern points which
+ is so essential TO provide bills against
the imports of gold. Secretary Cortelyou,
according to Washington dispatches to-
day, was disposed TO increase deposits
OF public funds in the southern banks as
rapidly as such funds become available
This will supply the banks with the stock
of currency so much needed to handle
the cotton crop, and will enable them to
await with less embarrassment than 9TH
erwise the arrival of their cotton bills
in Europe and the bringing back of their
gold. The committee OF New Orleans
bankers which is in Washington has sug-
gested that the New York banks can
ease the situation by giving the southern
hau l. OH lie IL.
forwarded as soon as they receive tele-
graphic advices OF the amounts. This
will enable the southern banks 10 check
against such balances in payment of col
lections and in making remittances to in
terror banks throughout the country.
Currency Reform Plan.
1t is noted with interest by leading
bankers here that the present scarcity of
currency and the recourse which had
been had to the national banks circula-
ton are arOusing unusual interest in the
plan for currency reform which has been
Endorsed by the American Bankers as
sOciation. This plan was adopted in De-
cember of last year. after consultation
with representatives of the New York
chamber OF commerce and was presented
TO congress at that time. The plan did
not receive the definite approval of the
American Bankers association, however.
until the meeting at Atlantic City in Sep
TENDER last, but at that time IL was in
dOTsed by nearly unanimous vote after
strong arguments in it's favor by A. Bar
ton Hepburn, president of the Chase Ma
tional bank of New York, and Represen-
tatiVe Charles n. Fowler, chairman of
the house committee on banking. The
committee which framed the measure was
continued with authority to take further
action 1t has not held a meeting since
the convention at Atlantic City. but some
OF the western members are strongly de-
sirous that such a meeting be called at
an early date, in order TO bring the sub
iect properly before congress while pub
lie opinion is aroused on the subject.