The Havre herald. [volume] (Havre, Mont.) 1904-1908, 1907-12-13
'BANkSGETTINGCASH

LAST STATEMENT SHOWS one
and HALF BILLION In GOLD.
Events in Financial World Show Grad.
uai Return of Confidence and Restor.
ing OF Normal Conditions in the
Banks-Great Increase In Gold to
observation-disclosures Bonds.
; New York, Dec. 10.--The events OF
the last week in the financial world
gradual return of confidence and the
restoration of normal conditions in the
banks. The decision Of the secretary
of the treasury to issue only about
$40,000,000 of the $l50000,000 in new
securities which he expressed will
the disclosure of unusually strong re-
J serves by country banks reporting to
the comptroller of the treasury; 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 toward
stability and reinsurance.
The action Of the secretary of the
treasury in limiting the issues of Sc
curities was a part of the original plan
recommended to him to meet the stu
alton by a resolute and adequate meas
ure, but to carry the execution Of the
measure no further than circumstances
required.
The result Of limiting the issue Of
the Panama 2 per cent bonds to $685.
100000 and the one-year treasury GER
tificates to about $15.000000 will be to
considerably simplify the problem of
the treasury management and money
market conditions during the spring.
1t is anticipated by iar-sighted bankers
here that there will be a plethora Of
money soon instead of a dearth, and
that it will be necessary to reduce in
some way the large volume of currency
brought into use during the crisis.
The increase in money in circulation
outside the treasury, as shown by the
monthly statement Of the treasury de-
partment for November, was $131, S72,-
SS7. Of this amount the increase in
gold in the country is computed at
about s72,000000, including domestic
production as well as importations
from abroad. The other principal form
of increase Is in bank circulation, in
which an increase of 1888, 521 was OBJ
tanned by the disbursement of bank
notes held in the treasury, and $46,-
237,730 was obtained by actual in
crease in the notes issued by the con-
troller and outstanding. ~. .:..".
There have been fears in some quar-
tiers that if anything approximating
$1O0,O00,0OO in new bank notes were
issued upon the securities of the one
year certificates the result in initiation
would be to hold gold in large amounts
after the credits issued by the crop
movement We're exhausted. This dan
SCL VILLA w lCaASSl w q IIlHll1ull Wy
the relatively small issues made by the
treasury, and if small amounts in gold
should be exported it is felt that they
could be spared, in view of the large
gold resources in the country to which
President Roosevelt called attention
in announcing the new loans.
The total gold in the country re-
ported by the last treasury statement
is $1,561, 714,719, which is equal to
more than SO per cent of the total
money in circulation. Some further
increase in bank circulation is expect
ed here upon the Panama bonds and
the treasury certificates, but it is be-
lieved that the bonds will be deposited
in many cases as security for the pub
lie money which has been left with the
banks and will not be employed IS a
basis for circulation until the one-year
certificates are Cancelled in the spring.
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