Los Angeles herald., 1907-12-06

doubled IN value since 1895. The CUSTOMS
duties collected in the past year amount
to 1888 2S0.126. an increase of sss, Oo,Ot
over 1905. which UP to that time was the
greatest year in point of customs re-
ceipts. For the third successive year
the value of the exports of domestic
merchandise has also been the largest
known, amounting to S1,S54. .o53,9o6, oyer
$126. 100000 more than in 1906.
An idea of the customs business done
during the past year can be gained from
the fact lat at the port of New York
the number OF packages examined was
77s.lS5. nearly 5000 more than during
the previous year, and the appraised
value of merchandise brought into that
port was ss52.oOo,OO0. an increase of $780,
100000 over that reported for 1906.
The advisability of increasing the
amount of our duty exemption in the
matter Of articles acquired abroad now
permitted citizens returning from foreign
travel is recommended. The present ex-
emption Is 800 In my judgment this
should be Increased to 500.
Retire Emergency Circulation
Owing to the currency stringency
which las existed for the past two
months, the national banks have taken
out circulation In large amounts (from
is not difficult to foresee that at u period
not very remote these banks will not
only be in position to retire large
amount of this ciruclation, but should be
encouraged to do so. II Is therefore
recommended tina the limitation upon
such retirement of circulation be left
within I. discretion of the secretary of
the treasury.
According to the report of the condi-
tion of national banks on August %, 1907,
the amount of reserves held by all the
national banks in the country was ST.
l21.35S,395. The total amount held by CEN
trail reserve banks due to national banks
vas S427, 100000.
1t might be regarded as worth while
to consider the effect of amending the
laws so that the country might be di-
vided into geographical or commercial
sections, with provision for the retention
within each section OF larger PROPORTION
OF the bank reserves required to be held
against deposits in the national banks
Of such section. The result of this would
be. taking present conditions, that the
banks In the three central reserve cities
would lose a considerable amount, and
this amount would be transferred to
banks In the reserve cities located In the
different sections and would necessarily
be held by them as cash. This addition
to the available and actual cash in banks
outside of the central reserve cities
would constitute an element of strength,
which, In times of stress, might aid ma
terially in diminishing the violence of
financial disturbances. Such a provision
of law as this would not affect in any
way the depositing by national banks of
their unemployed capital, outside of their
reserves. wherever they could best use 1t.
During the summer the gradual increas-
ing rate of interest charged for call
money, time money. and discounts of
commercial bills indicated a progressive
diminution in the amount of available
cash. Accordingly. it was decided Au
gust %. 1907, to make each week substan.
tia, deposits in the different sections of
the country, with the particular object of
Facilitating the fall movement of the
crops.
$4,000, 600 Distributed
These distributions were continued
weekly until the aggregate amount Oh
s26, 1000 had been so distributed. Not
withstanding this measure. there was a
constantly increasing stringency in the
monetary centers. which eliminated in
the forced suspensions of several impor-
tant institutions.
Prior to this crisis the shipments of
currency to the west by eastern banks
for crop-moving purposes had been in
significant. There had been no impor-
tant shipments of gold abroad, so the
monetary stringency seemed to be due,