The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1907-11-27
CURRENCY PAYMENTS
Soon to Be Resumed by Banks
Throughout the Country.
SUCCESS OF THE NEW LOANS

No Allotments Have Thus Far Been
Made Except to Banks That Desire
to Use Them as Basis For New Cir
culation-Decrease In Government
Receipts This Year.
Washington, Nov, ga more con-
fdent tone in regard to the success of
the new loans prevails at the treas
uTy department than at any time
since the announcement Of the loans
week ago. The visits of Mr.. Nor
gan on Friday and Saturday were fol-
lowed by visit from James B. For
gan, president of the First National
bank of Chicago. Mr.. Forgan saw the
president, Secretary Cortelyou and
Treasurer Treat, and expressed his
belief that the banks throughout the
country would soon be in position TO
resume cash payments.
Mr.. Forgan left tangible evidence
Of his visit in a subscription by the
Chicago Clearing House banks for ST.
100000 OF the new one-year certif-
Gates.
Mr.. Forgan represented that the
Chicago banks would be able TO re-
sumo upon an understanding with the
banks in other cities within the next
week or 10 days. 1t Is believed among
the treasury officials that complete
understanding will be arrived at be-
tween the banks in the large cities by
which there will be general resump-
tion of currency payments within the
next few days.
Not Enough Money to Buy Stamps.
The subject is of peculiar interest
to the treasury officials, because for
nearly month government receipts
have been declining as direct result
of the scarcity of currency. Distillers,
brewers and others who are required
to purchase internal revenue stamps
have not been able to secure currency
in sufficient quantities from the banks
with which to purchase these stamps,
and as the collectors are not allowed
under the law to receive certified
checks or anything except lawful
money, except at their personal risk,
the result has been that even a suffi-
cient amount of stamps to cover i'm
mediate needs has been difficult to OBJ
tain.
The conditions which will confront
the treasury six months or year
hence are beginning to be studied with
some interest by the officials. 1t is
anticipated that there will be a con-
siderable decline in receipts from d.
mnished consumption during the re-
naming seven months of the fiscal
year ending June 80 next.
The surplus of receipts over ex-
penditures thus far for the fiscal year
beginning July I last stands at the
nominal amount of $14S,872, while the
surplus for the same period year
ago was $12,332 469, If the remand
er of the year should show deficit
in ordinary receipts, there might be
serious need for a part Of the large
surplus which is being accumulated
from receipts and proceeds of the
loan.
Under the arrangements now pro
posed, by which $75,000,O00 of the
proceeds of the one-year certificates
are to be deposited in the banks, the
treasury will gain in actual cash only
$25,O00,000 from this source. A SINH
lar distribution of the proceeds of the
Panama issue of $5O,0OO,000 would add
12,5OO,OOO to cash in hand, but this
amount is likely to be required for
construction work on the isthmus.
Future Readjustments.
Under these circumstances it may
be necessary to withdraw additional
sums from national bank deposits
when money begins to accumulate in
the banks after the present pressure
has ended While the new loans will
place large amounts at the disposal OF
the treasury and the money market
they will involve a number of read
justments when the pressing need for
currency has passed.
Although applications and cash de-
posits for the new treasury certifi-
Gates are being received at the treas
ury in increasing numbers from indi.
viduals as well as from national banks
it is learned that no allotments have
thus far been made except to banks
that desire to use them as a basis for
circulation.
The declared purpose Of Secretary
Cortelyou in issuing the certificates
was to increase the volume of out
ltanding currency and his object, it
is said, can best be accomplished
through the increased issue of ma
tlonal bank notes, and for the present
at least the efforts Of the treasury Off
cials will be in that direction.