The Birmingham age-herald., 1907-11-09
OUTGO NEARLY S6O,OOO,OOO.
 WITHIN THE PAST WEEK
Grain Movement In the West Is lr1- proving, But There Is Still a De- mand In the South for Sup
 ply of Currency for Crop.

-N~~~---o New York banks were exerting theni- selves actively today to meet the demands of their country correspondents and de- positors for currency. They declare that the suggestions made from several west ern sources that they are not meeting legitimate demands are unfounded, and that they are, on the contrary, taking every practicable measure to aid the west and south. One of these large dents, has depleted it's reserve by about quarter during the last few weeks to supply currency where it is most needed and has made large shipments to banks In San Antonio, Galveston, Mem phis, Mobile, Atlanta and other south ern points.
 The country banks have been allowed to drawn down their balances to a point which affords in many cases hardly more than enough to meet the drafts sold in lle ordinary course of business. They have brought paper for rediscount to their
 New York correspondents in large amounts and the principal difficulty oI the New York banks has come from the demand for currency to be shipped
  discounts.
 Half Supply Given.
 As these rediscounts have been accom- modations and have not brought cent of currency to the discounting banks they do not feel that they should be called upon to supply the currency in small amounts under such conditions. It is not usual, except in special cases, to ship all that is asked, but about one half is usually shipped, the proportion varying according to the cash strength of the bank calling for coin or as the demdud is for legitimate purposes. Spe- cial favor is shown to the small interior banks where there is no clearing house, because it is realized that they are not in position to count upon cooperation and the use of clearing house certificates, as in the case of communities having a number of strong institutions.
 It Is admitted that the cotton move ment is seriously checked by the lack of small bills and silver to pay the small growers, and by the inability of the southern banks to handle the immense volume of business accommodating at southern points. The grain shipments are in better shape, owing to the gold se- cured by the banks of Minneapolis and St. Paul and Arrangements for paying in New York on grain bills. The New York banks feel bound to retain a cer- tain portion of their reserve to guard against possible contengencies, because they fulfill in substance that which is fulfilled in London by the Bank of Eng land and in Paris by the Bank of France, as the ultimate resources in emergency.
 $4o,ooo,ooo Engaged.
 The aid that is being rendered to the f, in1i fad I>xrft ft,n mt tbof total engagements of gold have now reached $4000O,000. The total was ma terially increased today by the announce ment of several purchases which had not heretofore been made public. Of the amount engaged $21311 900 has already arrived including $12,361, ,150 brought by the Lusitania this morning. This gold will afford the basis for nearly s2,000,000 in loans and will materially assist the New York banks efforts to meet the pressure for currency.
 The fact that practically $60, 000U00 in currency disappeared from the New York banks within week, as indicated by the last bank statement is considered sufficient evidence that New York is doing it's best The total drain of slast week Is computed upon the basis of an actual loss in cash of about s30,000,- 000 in face of the fact that $30,000,0 900 of public money had been poured into the New York banks. It is not possible to determine what proportion of this ESQ., GOO GOO went out or what proportion went into hoards in New York. It Is estimated in some quarters that about half of the amount was shipped to western banks. The treasury has nominally an avail able cash balance of about s17, GOO, 900. but this does not indicate the actual cash in the general treasury fund.
 The amount of cash on hand yester- day was S119,233.6 .639, but against this are charged a number of demand liabilities like outstanding checks, the national bank note redemption fund and balances of disbursing offices. The latter item alone stood for s6S.2O6,397, but it has been materially reduced by skillful bookkeep- ing at the treasury, in order to release cash without creating an apparent deficit. One of the measures which has been a. subject of some consultation between Secretary Cortelyou and leading bankers here has been the sale of a block of panama construction bonds.
 The manner in which this would ben o6t the market would be by enabling bonds to be used as a basis for national
 hank note circulation. Several steps are
 reouired. however, which depart a little from the usual treasury practice. Wheth-
 sr relief could be obtained with suffi-
 o,ont nromptness to justify all the steps l ,nvolved<in this process is matter which
 has not been fully decided upon at the l .~oasurv department.