Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-21
WASHINGTON At WORK ON
PROBLEMS OF thu ISSUE

Washington. Nov. 2O.-DUefs lul
Panama bonds and the one-year treas
ury certificates continued TO come Z,
the treasury today, but no official an
nouncemeut was made regarding
them. Reports were received today
by telegraph from United states as
siftant treasures at New York, Phila'
delphia, Boston, Chicago, Cincinnati
New Orleans. Baltimore and san
Francisco Of he amount Of the ap.
plicatlons for certificates received
from each point. One Of the ques-
lions which Is causing some inquiry
relates to the ability of the banks "a
withdraw circulation based upon the
new securities when the need Tor II
has passed.
AZ AN the certificates will
be- called for redemption al the eNplr-
alton OF the term liked by law the
notes issued against them VIII fall en-
tirely outside OF the provision fixing
"a limit OF $4,000. OO0 per month. In
this respect the short term certificates
viii have an advantage Owe the Pan
ma bonds. There Is another method,
however. IN which the banks can grad
ualiy curtail their circulation OUT
standing Without regard TO the legal
limit. This method Is not entirely In
then control. since it is governed by
the amount OF the notes OF each bank
presented 20 the treasury for redemp-
NNHNNH " ~ NNNNNE \ NNNHI ri NAaN'
they are paid by the treasury 30 law
lul money from the current redomp-
ton fund which each bank is required
Co maintain 10 the amount of 3 per
cent of It's circulation. u is optional
with the bank whether 60 restore tho
redemption fund and receive It's notes
hack 90 permit them 90 be- cancelled
and retired. This process only be-
comes operative. however. 90 The
uf notes presented for re-
demptiou. such redemptions are
rather slow under the national bank
ing system a. az present organized.
hut usually approximate about SO per
cent ~ the total bank circulation Ia
thc cUurse 90 "a year. A national bank
therefore. finding o. circulation re-
dundant. would be- able by directing
the cancellation OF al notes redeemed
Co gradually get rid of "a considerable
portion iu the course of "a number Of
months. With these two provisions
in operation the ability CD retire ali
notes lss urd against thr one-year GER
tlucafes at the maturity uf the latter
and the ability Co gradually wipe ont
notes redeemed which ere issued
against The Ions term bonds Do is he-
iieved that no bank need be- deferred
from taking uur additional ClrCula-
ton at the present time by the fear
that De- viii AVE len on b. hands an
unWieidiY note liability aner The de-
mand for notes has diminished.
Thnse hanks which have been urged
hy the secretary fu take out c~lrcula-
zion lu order t0 relieve fhe urcsrnt site
mafluu. without regard tn fhe profit.
aould. Do d. believed. b. found ready o.
surrender their resent issues a. read
49, a. fheF were received Tor rcdomu-
gion This would not interfere with
their holding the 3 per cent rcrfir-
Gates a. an Investment until their ma
furltF a year hence
IN the absence 81 Cnmufrullrr
Ridgelff. who has been called fo the.
bedside ~ his father. Deputy Comp
fruiier Kane D. receiving daily reports
from bank examiners and Others re-