Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-31
BANKS QUICKLY ACT
Indicate Purpose to Increase
Their Circulation.
Mr.. RIDGELY'S OPINION
Looks for Much Greater Supply of
Money in a Short Time.
ACCOMMODATION WITH BONDS
Apparent General Inclination of
Fiscal Institutions to Aid
One Another.
ACCOMMODATION WITH BONDS

Treasury officials are agreeably surprised
at the number of banks throughout the
country which have already Indicated
-neir purpose to comply with the sugges-
ton of Controller of the Currency Ridsely
that additional circulation be taken out.
Although the suggestion was made only
yesterday afternoon. a large number of
kilograms We're received at the department
as early as 9 O'Clock this morning ask
ing for additional circulation, varying In
amount from a few thousand do ,aTs -
81 O90, 900. George f. Roberts. former di-
rector of the mint. and now president of
the Commercial National Bank of Chicago.
is here and has engaged s2.r9o.'Hst add
tional circulation for his bank Sol Mex
Ter. vice president of the Whitney Cen
tral National Bank of New Orleans. IS
also here and Is liking arrangements to
materially increase his holdings ttner
prominent bankers. through washington
representatives, are arranging to deposit
the necessary securities preparatory to
taking out national bank notes TO the
limit OF their capital stock.
The controller now has In vaults ma
tional currency TO the amount OF $ib' H'.-
600. and although a considerable proper
ton of this amount belongs to banks that
have already reached their limit under the
law large sum Is available for banks
that carry only a comparatively sma |
amount when compared with their cap
ital. One large New York bank could. un-
der the law, it is aid. take out sl09D,VD
additional circula ton, and in all prob
ability will soon ask for material in
crease Mr.. Ridgely today expressed the
opinion that within the next ten days the
outstanding circulation Of national banks
will have been increased by from s2o.00,-
600 to $i0-WO,Ggo, and possibly a much
larger sum.
There are Indications that many banks
that have no United States bonds on hand
To deposit as security for circulation are
borrowing them from other banks that !
have a surplus on hand or have already
reached their limit In many instances
these requests for accommodat atoms of this
character are being promptly complied
with, and there seems to be n general n
clination among banks to assist one an
other in the effort to materially increase
the amount of national bank circulation |
Some Measures Suggested.
Sol Wexler, vice president of the Whit |
ney Contra! National Bank of New Or
leans, who. with other prominent New Or |
leans bankers, has had number of con- |
ferences with Secretary Cortelyou in an |
effort to devise a M n by which cotton |
exporters could get prompt cash returns |
from cotton shipments, ~'ay said:
The present situation can be relieved |
in but two ways: First, by the restoration |
of confidence and the return of money |
which has been withdrawn from banks |
in the east during the recent panic; sec
ond, by rapid export of our cotton,
wheat, provisions and other products to
create a balance of trade in our favor
and make importation of gold in large
quantities possible.
The prompt and wise action of Secre-
tary Cortelyou, aided by Mr. Morgan and
other Pre- ninent New York bankers. has
gone very far toward restoring confidence
and money is a. ain being redeposited in
the strong inSttut OnS of ne country
The second situation is more difficult |
of solution. owing to the necessary delay |
in transmitting bills of exchange to Eu-
rope and the time required for the pur-
chase and shipment of the gold to this |
country.
Southern banks ale doing their part
by largely incra asing their circulation !
with the assistance of the controller and
the Secretary of the Treasury, which |
will enable them to forward their foreign |
exchange bills to New York without reGu r
ing currency for the entire amount. New
York can, in turn, as soon as these bills |
reach the other side. import gold and /
then transmit currency in quantities
throughout the agricultural section of the |
country.
Some effort Is being made by large
cotton houses to have their foreign CORE
SpondentS deposit funds in foreign banks
subject to cable transfer against advice
of documents deposited in southern banks
with cotton bills of ladng attached to
come forward Immediately; but in my
opinion, this transaction will not be mad,
extensive scale.