The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-11-11
EUROPE MUST PAY
IN YELLOW GOLD
FOR EVERY BALE OF COTTON
AND CAR OF WHEAT PLACED
ON SHIP BOARD.
MONEY COMING WEST
From Eastern Banks to Relieve the
Strinqency Seven Tons
Reached Chicano
Last Week.

| New YORK, NOV. l0.--1nc mos
leyentful week in the financial history
Fcf the present generation closed Sat
iurday with conditions much clearer
than the week before, but with some
/ clouds still hanging over the hcrizf n.
iThc bank statement yesterday
changed the situation. While it
| showed a nominal decrease in the
irequired reserves Of $13,0S5S0 more
than two thirds CT this decrease was
due to reserve requirements caused
| by an increase in deposits because OF
/ the taking over Of loans from trust
companies by banks. Moreover, tae
actua cash loss of $4.313,000 was due
to the system of averaging accounts
Iftr the entire week, including seve a
days Before the arrival Of new gold.
Unlecs the demands from the coun-
try arc very heavy, the arrival Of ad-
ditional gold will more than offset the
less Ct cash last week and make a
creditable showing for the reservc s
rext Saturday.
Europe Protects Herself
The restoration Of comparative Sc
curity II New York was obtained only
ay the demands of the money markets
Of Europe which created tension
not experienced since the Eoer war
The Bank of England raised its dis
count rate to 7 per cent rate which
has not been fixed since 1873. The
Bank OF France raised its rate to 4
per cent, the Bank Of Belgium to 6
per cent. The Bank of Germany fixed
the unusual rate of 71s per cent.
1t is net surprising that these pre-
cautions should be taken to protect
European bank reserves, in view of
the fact that nearly S50,000,0o0 In
gold has been engaged by American
banking institutions within two
weeks. The demand for gold from
came at favorable time in
some respects for the outward move
ment of American products of which
the leading ones are cotton and
wheat. The fact that European bank.
prs declined during the summer to ac,
ccpt American finance bills because
hey already scented storm, madd
he demand upon them more sudden
han would have been the case If
American bankers had found it neces-
iary to buy cotton and grain bills to
ever previous borrowings. Under
he actual conditions England must
3ay substantially in gold for the bal
lnce of exported products which are
being created in favor of this country
)y every bale of cotton and car load
II wheat placed on shipboard.
Money For South and West.
New York bankers are sending to
he west and south all the currency
hey can spare. The premium on cur
'oncy. which rose as high as three
,er cent during the week, has had a
serious effect upon exchange and the
rice of United States bonds. 1t has
disturbed calculations based upon
old PARTIES of exchange and made
{ possible to pay a higher price to
,et gold and acquire bonds as basis
OF calculation than il no such |
,remium prevailed.
Failures Very Few.
One of the favorable features CT
he situation thus far is the relatively
mall number of failures of national s
,anks rs compared with 1893. Then
Is national banks suspended In
uly, 6s i'm June and August while
uring the first eight months of 1893 .
ne suspensions of state and private
anks was AS. In the present crisis
he number of national bank suspen-
ions reported does not exceed
Oxen, and some of these win re-
pen.
The new week opens with the
anking situation in New York
feared up. so far ns any danger OF
Grther failures or Suspensions are
with banking reserves
intact, and with more c
ian s25.00o.00o on the ocean to 5
Lrengthen them. 1