Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-01
Heavy Imports From Europe
and Increase in Bank Note
Circulation Promise Speedy
End of Money Famine,
GOOD MAY FOLLOW
FINANCIAL FURRY
Hope Expressed that Congress
May at Last See the Urgent
Necessity of Elastic Cur
renCy. "a

lBy Morning journal Special Leased Wire ]
New York. Oct. 31.--lndications
that the available supply of cash
would be materially increased within
a short time with imports of gold and
the increase of bank note circulation
and that the movement of cotton and
grain crops would be facilitated in ev-
cry way possible, with the result OF
increasing credits abroad, were the
salient features of today's financial
situation. Ii seemed to be recognized
everywhere that the acute stage or
the crisis was over and that all that
remained was TO obtain sufficient cur
rency to resume currency payment
upon a broad scale and thus to restore
conditions prevailing before the crisis.
The engagements OF gold made in
New York, Chicago and elsewhere
brought up the total import movement
within the past week to $23.000,0 900.
As the amount of gold will afford the
basis of credit to four times the
amount. or about s95, 1000, 600. this will
in Itself afford much relief to the eX-
listing pressure. The action of the
Bank of England in raising its dis
count rate from 4 ~ to 8 ~ per cent
was in accordance with expectations
in conservative circles. The prompt
throughout the country to the sugges-
tion of Comptroller Ridgely that they
should employ United States bonds as
largely rs possible to secure circnla-
ton and substitute other bonds for
those pledged against deposits of pub
lie money, promises considerable In
crease in the availa BILE stock of cur
rency. The estimate of an increase in
the bank note circulation OF 100000
600 Is considered well within the prob
abilities. Ii will require time. how
ever, in some cases for the banks to
obtain proper bonds TO substitute for
their United States bonds. Mr. Van-
derlip, vice president OF the Ma
tional City bank, made the fruitful
suggestion today that the savings
banks would at once improve the gem
eral situation and add to their circu-
lation if they would sell their holdings
of United States bonds TO the national
banks. Even in cases where they do
not care to sell, IL is believed that they
will lend their bonds to the national
banks as has bitten been done in the
past. Interest Is continuing 70 center
in the movement of the cotton crop
from New Orleans and other southern
points, which Is to provide bills
against the imports of gold Secretary
Cortelyou, according to Washington
dispatches today, was disposed to in
crease deposits of public funds In the
southern banks as rapidly as su h
funds became available. This viii
supply the banks with the stock Of
surrency so much needed to handle
the cotton crop, and will enable them
to await with less barrassment than
otherwise the arrival of their cotton
bills in Europe and the bringing back
of their gold. The committee of New
Orleans bankers which is In Washing
ton. has suggested that the New YORK
banks can ease the situation bN CIV
ing the southern banks credit for
checks in foreign banks forwarded as
soon as they receive telegraphic ad-
vices OF the amounts. This VII ena-
BILE the southern banks To check
against such balances i'm payment OF
collections and In making remittances
10 interior banks throughOuJ the coun-
try. IL Is noted with interest by the
leading bankers here that the present
scarcity Of currency and the re-
source which IL had been 10 the
national banks circulation are arous-
ing unusual interest In the plan Tor
currency reform which has been en-
dorsed by the American Bankers as
sOciation. This plan was adopted IN
December OF last year. after consulta-
ton with representatives Of the New
York chamber Of commerce. and was
presented TO congress at that time.
The plan did not receive the definite
apnroval of the American Bankers as
sociation, however, until the meeting
at Atlantic city in September last. but
at that time Il was endorsed by 2
nearly unanimous vote, after strong
arguments in its favor by a. bartoh
Hepburn. president OF the Chase Ma
tjonaI hank OF New York. and Repre-
sentative Charles n. Fowler. chairman
Of the house committee on banking.
The committee which framed the
measure was continued with nuthor-
ity 20 take further action II has nol
held a meeting since the convention
at Atlantic City. but some OF the Vest
arn members are strongly desirous
that such a meeting BE- called al an
early date, in order TO bring the suo-
iect properly before congress WINE
public opinion is aroused on the SUD-
ieCt.