Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-09
bAnKERS|NS|S7
MONEY FLOWS
TO INTERIOR
NEWT0RK MEETING ALL
LEGITIMATE DEMANDS
Metropolitan Financiers Resent
lnsinuation That They are.
Not Doing Utmost to Help.
Out Country Correspondents

New York. Nov. s-The leading
New York banks are exert
ing themselves actively today TO
meet he demands Of their country
correspondents and deposltors for cur
rency. They declare tina the sugges-
lions made from severai western
sources that they are not meeting le-
ultimate demands for currency from
the West are entirely ~unfounded, and
that they are, IN the contrary, taking
every practicable measure to aid the
West and South. one Of these large
banks, with several thousand cor
respondents. has depleted It's reserve
by about a quarter during the last few
weeks TO supply currency where II Is
most needed. and has made large
shipments 10 banks In san Antonio,
Galveston. Memphis. Mobile, Atlanta
and other southern points. The coun-
try banks have been allowed to draw
down their balances to a point which
affords In mani cases hardly enough
90 meet the drafts sold In the ordin-
AIRY course OF business. They have
brought paper for rediscOunt to their
New York correspondents In large
amounts. and the principal difficulty !
Of the New York banks has come |,
from the demand for currency to be !
shipped against the balance created by
these rediscounts. As the rediscounts
have been IN the nature Of an accom-
mediation and have not brought a cent
Of currency TO the ~discounting banks.
they do not feel thAt they should be
called upon TO supply currency in large
mounts under existing conditions. i
III best possible judgment IL used I'm
meeting these country demands for
currency. II is not usual except In
special cases 10 ship all that Is asked
FOR. but n portion OF what Is asked FOR, |
ranging around one-haif. Is usually
shipped, the proportion varying ac-
cordbig to the cash strength OF the
bank calling for additional currency
or the supply demanded for legitimate
purposes Special favor Is shown 10
the sinai Interior banks, where there
rs no clearing house, because Il liz re-
allied that they are not In a position
to count upon cooperation and the
use " clearing house certificates. as
Ia the case 81 communities having a
Number Of strong Institutions. II Is
arfnitted mat the cotton movement Is !
seriously checked by the lack OF small
bills aud silver to pay the small grow
efs ana BY the Inability OF the south
cfn banks 70 handle the immense vol
uuio OF business accommodating Al /
southern points. The grain shipments .
are m better shape, owing To the gold
H'AANfA ny AMN UhlhN Nl minneapolis r.
ma 81. Paul and arrangements for :.
paying cash Ia New York on grain |
bills. Tho New York banks feel bound |
To retain "a certain proportion Of re- |
serve to guard against possible con-
ungency, because hoy fulhll in sub
stance the function which Is fulnlled
IN London by the Bank OF England
and IN Paris by the Bank OF France,
The ultimate resource In emergency
The aid which Is being rendered to the
situation Is Indicated by the fact that
the total engagements OF gold have 4
reached 0.0O0. 00O.
This gold will afford the basis of
nearly 100000, goo In loans and viii
materially assist the New York banks
in their efforts To meet the pressurc1 =
for currency throughout the country.
IA fact that practically 500. 0O0.-
zoe In currency disappeared from the
New York banks within a week, as
indicated by the last bank statement.
b. considered sufficient evidence that
the New York banks are doing their !
best 10 meet the demands upon them
II b. not possible 10 determine what
proportion Of this $50, 600, 000 went
west and what proportion went into
hoarus IN New York. II is estimated
in some quarters that about half OF
amount was shipped 10 western
banks, but other ankers put the pro- =.
somewhat lower. leaving the y
balance to be accounted for p hoard
one 81 the measures which has been .,
Il subject ~ some consultation be- !
tween Secretary Cortelyou and Lead !
.ne bankers here has been the sale ofIO
. block pf Panama construction bonds. Il
The manner in which this would bene- I
she market woul be by enabling e.
bonds Co be- used as a blsis for ma n
Iional bank note circulation. c'
The stream Of European gold pour- m
ng into New York has not been halt Ii
I'd here to meet local demands. but is
allowed 10 nOw through the 100
inancial arteries OF the United States 60
relieve the needs OF agriculture q
md Other industries generally. Gold g
importers state that nearly all OF the Do
.-i.Ooo, 900 which has already reached %
iere Will soon ind It's way % every
luarter OF the country. Nearly So
600 has been shipped 90 the inter- %
pr this week. Gold has been shipped al
here 10 Chicago. Ia such large =
mounts. Do b. understood. in local ~
'nhkinE circles. that the ISSUANCE Of a
REGULATING bank script In Chicago pos NJ
may not be necessary. The tf
'~reatcst part Of the Sgi.00O. 600 arriN- N
nE on the steamer Lusitania and af -
f2k,00O. 600 stili 90 come. viii De-
Immediately shipped Pat 10 out ~ e
I" NNNAN|.
Never in b history Of New York
ntnccs. according O. gold importers
as there been $50 much money en-
aged abroad b. out OF town bank a. n
2 present. -
There nee De- no fears said a
Of one % the largest gold inn
firms tonight that there will
o. cessation Of sold Imports because rt
the Increasing OF the discount ratcs 81.
The Ranks uf England and Ger D..
These Increase ln the discount fc.
Be- we've not made f1r the purpose ODD
stopping gold from coming Co this
funfff 49, o. TauularIr supposed. hut Cr
strengthen their own Uasiilnn hy uH.
.aNirg gold from other cfufcrs in ue
.n world. There ls 81 heavy outward uf
HFemfnt uf American commodities. lni
until they are paid fai ur can De- Al
end our payments Dob Euld and u OF
nnaf he denied us THE E1if that nr
b Are importing g. coming in ever OIL.
rm tnuuEh principally In American OBJ.
iublc eagles ] know rHat Wtthg "a hu
ar thf Russian imperial trra llrv cas-
.d flaa.eoN nge iu American double eNi
res bearded ln ls vaults while the fr.r
ink ~ England has many millions 80 an