The Irish standard., 1907-11-30
Treasury AIDS IN
restoring Calm
AeS~ 0AAA-
RESUMPTION OF MONEY PAY.
MENrs BY BANKS TO FOLLOW
ACTION BY GOVERNMENT.

ROCKEFELLER is OUT
WITH BRIGHT VIEW
Oil Magnate In Interview Declares
the Worst Is Over and Falls to See
Cause for .Alarm-New York Re.
= ports Great Confidence.
Washington. Nov. 26.-News from
New York and other money centers
that currency payments would soon
be resumed was accepted as evidence
that the policy of the treasury had
contributed its share in the restora'
tion of confidence. While Secretary
Cortelyou fully appreciated the fact.
in announcing the issue OF the certifi'
Gates, that they might become
source of bank note imitation to
certain. extent, he believes that the
character of the certificates will pre-
vent the imitation from assuming
dangerous character. It is not con-
sidered at the treasury that the GER
tiflcates themselves will be used to
any considerable extent as currency.
A few may be passed back and forth
in settlements between banks, where
settlements in cash have not been re.
sumed, but. these would only take the
place of clearing house certificates and
perhaps permit the retirement OF
those instruments sooner than would
otherwise occur. The fact that the
certificates bear interest and are re-
deemahle within one year are the
distinguishing marks by which they
are considered to differ radically from
any form of currency. If they are
used to initiate the currency at all, it
will be as security for bank-note cir
culation, but this cannot last beyond
the one-year term of the certificates,
and it is believed that if banks find
their circulation coming back upon
them rapidly for redemption they will
retire their notes within the year, even
though they continue to hold their
certificates as an investment.
.,: Not Hampered by Limit. ::
They will not be hampered by the
: limit of $9,0O0,000 per month imposed
upon the retirement Of bank notes, be-
cause the limit does not apply to Sc
curities which have been called for
redemption. The situation is SO rap
idly improving that 1t is quite possi'
bile that allotments will not be made
for the full amount of $100,000,000
which Secretary Cortelyou announced
a week ago would be offered to the
public. 1t is declared by financial
experts that even If industrial condi.
tions continue unfavorable. there is
little doubt that money will accumu.
late rapidly in the banks after curren.
Ticy payments are resumed, because
there will be lack of inclination to
borrow it for new enterprises. This
will give the banks such surplus that
!, they can respond to calls from time
to time from the secretary of the
treasury for the surrender of public
funds and these funds can be applied
to the redemption of the one year
certificates. Treasury officials and
others who have been through pre-
'vious periods Of strain declare that
events after a crisis always follow
practically the evolution above set
forth and that this evolution of events
has been fully anticipated by the ad-
rninistration.
The news that currency payments
would soon be resumed was crafty
ing to local bankers in Washington
because it will permit the restoration
of normal conditions in exchange re-
lations. There has been no suspension
of currency payments by the banks
of Washington because the large
disbursements for salaries and other
:, purposes made by the government
chiefly in currency, always keep an
adequate supply afloat. In few
cases where banks have been called
upon to buy a large amount of New
York exchange, this has depleted
their cash.
49,. "Worst Over" Says John D.
New York, Nov. 26.-"The worst is
over" said John D. Rockefeller, when
: asked his opinion regarding the finan
cial situation. Mr.. Rockefeller gave
his opinion to friends. There was no
necessity for that worst ever to have
appeared" he continued, "but o1
course we are bound to feel the effects
of it for some time"
What do you consider the real
cause of the panic?" he was asked.
"Oh, there were number of causes
They all happened to combine and
come to head at one time. All ot
these combined forces created un
easiness and lack of confidence
When you remove confidence from the
business world trouble is bound to
ensue. Confidence will be restored
gradually and we will resume our
normal condition. This is too great
a country to be held down.
DO you believe President Roose.
yelt's policy in attacking the trusts
contributed to cause the financial con.