Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-11-22
BANKS MOSTLY RESPONSIBLE
Accused By Treasury Of HOardlng
the Peoples Money.
ADMINISTRATION View OF SITUATION

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ADMINISTRATION View OF SITUATION
Charges From Washington to the Ef-
feet That Banks, Railroads and 9th
er Corporations Are Organizing Big
Pool to Depress Stocks So They May
! Be Bought Cheap.
Officials Of the United States treas
ury which has been going to the relic.
OF the financial situation by depositing
public funds in the national banks,
says a Washington special Of last
Monday, are chagrined at the way the
management of some Of these banks
in the large money centers have been
acting. They are also aware Of the
policy inaugurated by the responsible
heads of the big railway corporations
since the money stringency became
acute of segregating their railway re-
ceipts in New York city, withdrawing
them from circulation. In large meas
ure this policy of the railway magnates
IL responsible for much Of the strin-
gency throughout the interior portions
of the country, and appeals to the pa
triotism Of the railway financiers have
thus far proved unavailing.
The Banks Guilty.
The country should know the truth,
and that is that 1t is not the great mass
Of people who have lost confidence. It
is the bankers and flnanciers them
selves who are boarding the funds,
meanwhile appealing tearfully to the
public to leave Its money in their
banks that it may remain in circula-
ton and help the country's business.
That Secretary Cortelyou is fully ad-
vised Of the situation is evidenced by
his most recent visit to New York city
to exert his power in compelling the
big banks Of that metropolis to release
portion Of the reserve funds they
hold belonging to banks in the inter
ior, in order that money may be pro-
vided for the movement Of the crops.
That there should be money strin-
gency at this particular time passes the
understanding Of even the financial
student.
All general conditions are right for
good times and free money. The comp
troller of the currency recently made
public the figures that will appear In
his annual report showing the status
of the state banks, loan and trust COM
panies, savings and private banks Of
the country. The figures for the ma
tional banks have not yet been COM
pleted. The institutions whose figures
are available had aggregate resources
for the last fiscal year exceeding those
for 1906 by sSO5, 5,16S,s7O, the totals be-
ing for 1906, $1o,363, ,355,846 and for
1907 $11,16S,514.516. What IL Of more
Importance in this immediate connec-
tion, however. is the fact that while In
1906 these same banks showed total
Of 1894, ,95S,S17 in cash on hand. in 1907
the figures were 1896, ,637, ,002, an in
crease during the year Of $60,6sS,S17,
every dollar Of which represents the
increase Of actual cash on hand; not
loaned out or locked up in safe deposit
vaults but Of service in the transaction
Of daily business. When the figures
for the national banks are made pub
lie 1t will be seen that has increased
correspondingly, and the increase is
actual cash on hand yet the cry Is that
there is a shortage Of money.
Our Big Foreign Trade.
Here are other figures that have a
most interesting connection with this
study: During the nine months end
ing September 80, the latest date to
which statistics have been compiled,
this country sent abroad domestic ex-
ports aggregating s1,3O9,611,oSS, an
increase of $191,O70,195 over the cor
responding period of 1906. During the
same period this year we imported ST.
I1OS,17S,744, an excess over the same
period of last year Of $15S,911,627. Our
exports exceeded our imports for these
nine months by S32,164,56S. In other
words, we have been prosperous enough
to so enormously increase our for
eign trade and spend $15S,911,627
abroad more than last year, we have
sold foreigners $191,O76,195 more than
we did last year during nine months,
and the books show a balance to our
credit on the entire transaction Of $32,-
164,56S, money which should come
flowing in from the other side in the
shape of gold to pay what is owed US.
Therefore, not counting the natural in
crease in the more than six thousand
national banks. here is a grand total
Of $92,S63,3S5 in ready cash more than
we had last year at this time. And
vet the country is told that the strin-
gency is due to the shortage Of money
with which to transact business. What
has become of it? Is the problem which
the treasury department is endeavor-
ing to settle.
One of the leading officials Of the
treasury, who naturally will not per-
nit his name to be used. declared HIM
self in the following significant Ian
guage:
Banks Not Doing Their Part.
There is a strong suspicion among
treasury officials who have been stu
dying the financial situation day and
night, for the purpose Of working out
relief, that the banks themselves are
more responsible for conditions as they
exist today than anybody else. The
country should be and Is prosperous
and there should be an average amount
of money; now where has 1t gone?
National banks throughout the coun-
try, those in the interior, in the west
and the SOUTH knew that the crop NOV
ing season was at hand and should
have prepared themselves for the ma
turally increased demand for curren-
cy. Instead, they have sent on their
surplus funds to New York. where they
receive high interests, and in some cases
u