The Montgomery advertiser., 1907-11-01
INCREASING
 CASH SUPPLY Imports of Gold Bring
 Relief. FACILITATE CROP MOVEMENTS Bankers Believe Acute Stage of
 Crisis Has Passed. sssnpt Response of Nationaig 'ks te CcmptreIler Ridgeiy's sus tisn Promises Considerabls \
 crease in Currency
FACILITATE CROP MOVEMENTS

New York, Oct. 31.--Indications that the available supply of cash would be materially increased within a short time, both by imports of gold and the increase of the bank note circulation, and that the movement of the 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 financial sit uation. fa a It seems to be recognized everywhere that the acute stage of the crisis was over and that all that remained was to obtain sufficient currency to resume currency payments upon broad scale and thus to restore conditions prevail ing before the crisis.
 The engagement of gold made in New York, Chicago and elsewhere brought ID the total import movement within tho past week to $25.75o.000, The amount of gold will afford a basis of credit to four times the amount. or about $95. 900 900 and will in itself afford much relief to the existing pressure. The action of the Bank of England in raising its discount rate from 4 1-2 to 5 1-2 per, cent. was in accordance wi.a expectations in conservative circles. The fact that the increase was not made to per cent. and that the English rate remains per cent. below the Ger. man rate, is accepted as an indication
 
 sidered acute. Ae Banks, Prompt Responre.
 The prompt response of the national banks throughout the country to the suggestion of Comptroller Ridgely that they should employ their United States bonds as largely as possible to secure circulation, and substitute other bonds for those pledged against deposits Of public money, promises considerable increase in the available stock of cur rency. The estimates of an increase in the bank note circulation of s3o,000.- 900 Is considered well within the prob- abilities.
 It will require time. however, in some eases for the banks to obtain proper bonds to substitute for their United States. bonds. MT. Vanderlip. Vice President of the National City Bank. made tha f<uitful suggestion today that & the savings banks would at once inn prove the general situation if they would sell their holdings of United States bonds to thel national banks. Even in cases wheHe they do not care to sell. it is believed they will lend the bonds to the{ national banks as has often been done in the past.
 Movement of Crops.
 Interest continues to center fin the movement of the cotton crop from New Orleans and other Southern points, which Is sd essential to provide bills against the imports of gold. Secretary Cortelyou according to Washington !, dispatche4 today was disposed to in- crease deposits of public funds in the SoutherH banks as rapidly as such funds Become available. This will supplX the banks with the stock of curreAcy so much needed to handle the Cotton crop, and will enable them to await with less embarrassment than otherwise, the arrival of their cotton h3ha fo Eurone and the bringing back of the gold.
 ' ,f The committee of New Orleans bank 1 CTS which is in Washington. has sug rested that the New York banks can ease the situation by giving the South ern banks credit for checks in foreign banks, forwardad as soon as theiy re- ceive telegraphic advices of the amounts. This will enable the South ern banks to check against such bal ances in payment of collections and in making remittances to interior banks through out the country.
 Scarcity of Currency.
 It is noted with interest by bankers here. that the present scarcity of cur rency and the resource which has been had to the national bank circulation, is arousing unusual interest in the plan for currency reform which has been endorsed by the American Bank CTS Association.
 This plan was adopted in December of last year, after consultation with representatives of the New York Chamber of Commerce, and which was
 snted to Congress at that time.
 plan did not receive the definite val of the American Bankers As-
 a lon until the meeting at Atlantic lsle n September last, but at that lt was endorsed by a unanimous
 4s. The committee which framed the
 s.,-, was continued with author s.st~t ke further action.
 e, not held a meeting since the
 -t s n at Atlantic City. but some
 e e sstern members are strongly Esat nat such a meeting be called
 ssv date in order to bring the F.. s,t7 perly before Congress while
 ion is aroused on the sub