Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-11-01
Further Supply Of Avail
able Currency In Sight.
Imports Of Gold and Increase
In Bank Note Circulation.
Financial Situation Rsassurins...
Business Very Good.

New York, Oct. 31-Indications that
the available supply of currency would
be materially increased within a short
time. both by imports of gold and the
increase Of the bank note circulation
and that the movement of cotton and
grain crops would be facilitated in
every way possible with the result of
increasing our credits abroad, were the
salient features of tOday's financial Sit
u2tiOn. 1t seemed to be recognized
everywhere that theacut stage of the
crisis was over and that all that re-
manned was to obtain sufficient cur
rency to resume currency payments
upon a broad Scade and thus to restore
conditions prevailing before the crisis
The engagement of gold made in New
York. Chicago and elsewhere brought
up the total import movement within
the past week to $23,75O.00O AS this
amount of gold will afford a basis Of
credit to four times the amount. Of
about So50OO.OO0 it will, in itself afford
much relief to the existing pressure.
The action of the Bank of England in
raising it's discount rate from Az to 5is
per cent. was in accordance with ex-
pectations in conservative circles. The
to six Per cent. and that the English
rate remains one per cent. below the
German rate is accepted as an indica-
ton that the situation ct London is
not considered acute.
The prompt response of the national
banks throughout the country to the
suggestion of Comptroller Ridgley that
they should employ their United States
bonds as largely as possible to secure
circulation and substitute other bonds
for those pledged against deposits of
public money, promises a considerable
increase in the available stock Of cur
rency. The estimates of an increase in
the bank note circulation Of $50. 100000
is considered well within the probabili-
ties. 1t vii require time, however. in
some cases for the banks to obtain
proper bonds to substitute for their
United States bonds. MIR. Vanderlip.
vice president of the National City
Bank. made the fruitful suggestion to-
day that the savings banks would at
one" improve the general situation and
adj dto their cash if they would sell their
holdings of United States bonds to tho
National banks. Even in cases where
they DO not care to sell II is believed
that they will lend the bonds to the
national banks rs has often been done
in the past.
Interest is continuing to center in
the movement of the cotton crop from
New Orleans and other Southern
points. where it is SO essential to pro-
viding bills against the imports Of
gold. Secretary Cortelyou, according to
Washington dispatches today, was dis
posed to increase deposits of public
funds IL the Southern banks as rapid
Iy as such funds became available.
This will supply the banks with the
stock of currency so much needed to
handle the cotton crop and will enable
them to await with less emharrass-
ment than otherwise the arrival OF
their cotton bills in Europe and the
bringing back Of the gold. The COM
mittee of New Orleans bankers which
is in Washington has suggested that
the New York banks can ease the situ-
alton by giving the Southern banks
credit for checks on foreign banks for
warded as soon as they receive tele-
graphic adviccs Of the amounts. This
Will enable the Southern banks to
check Against such balances in pay
ment of collections and in making re-
niittanccs to interior banks throughout
the country.
1t is noted with interest by leading
bankers here that the present scarcity
of currency and the recourse which has
been had to the national bank circula-
tiCn are arousing unusual interest in
the plan for currency reform which
has been endorsed by the American
Bankers Association. This plan was
adopted in December Of last year, af-
ter consultation with representatives
Of the New York Chamber Of Com
merce. and was presented to Congress
at that time. The plan did not receive
the definite approval of the American
Bankers Association. however. until
the meeting at Atlantic City In Septem-
Der last, but at that time It was en-
dorsed by a nearly unanimous vote,
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