Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-12-02
Administration Pleased with the
Result Of It's Action.
CASH PAYMENTS IN DECEMBEl
Expected to Be Resumed Shortly After
Meeting the December Payrolls.
BANKS HAVE STOOD STRAIN WELL

WASHINGTON, Dec. 1.-The close Of the
past week found q confident feeling pre-
vailins In banking circles and at the treas
ury that the financial situation would
soon resume It's normal state. The inter-
vention OF the government two weeks ego,
by which It was proposed to issue si5O.oOO-
600 IN new securities. accomplished the
purpose Rnticipated by President Roose-
welt and Secretary Cortelyou In demon
strating the ability OF the treasury to re-
Hove disturbed conditions This result
having been accomplished. the actual is
sues OF new securities will be only about
half what was proposed. In this respect
the present Administration departed from
the policy pursued in 1893 when measures
Of relief were usually adopted only when
they became imperative. It is felt at the
treasury that the wisdom Of the new policy
has been vindicated-that It was better to
take resolute ana broad measures even
n they went beyond the Immediate needs
Of the situation. The issues of the Pan
ans bonds viii be for the full $50, 900 O0O
which was offered. but the issue Of one
yoar treasury certificates will not much
sxceed s2sOO0,0oO. It is probable also that
the issues OF new bank note circulation will
fall considerably within somo OF the earlier
estimates. because OF the abundance Of cur
rency which win Je available when cur
renoy payments are resumed by the banks
and exchanges resume their normal course.
Not Many Bonk Notes.
Since the Panama bonds will be held by
tie treasury in the first instance as se-
curity Tor the public money which Is paid
for them and left on deposit with those
purchasing bonds, the bonds are not ex-
pected to be deposited to their entire
amount for new bank note circulation.
They can only be 50 deposited by substi-
tuting other classes OF bonds as security
for deposits OF public money. While this
would have been done II the new clrcula-
tion had been required. It is now expected
at the treasury that It win not be done to
ananhlne like the fun issue OF bonds. II
public money "a Withdrawn from the banks
IN tho spring, the bonds will be released
and could be substituted as security for
circulation issued against the one year GER
tlfcRtos, II the latter were then paid off
with interest to the date Of payment
The information reaching Secretary Cor
telyou and Comptroller Ridgeley Is very IA
vorable 70 the resumption OF cash pay
ments by the banks as soon as the Decem-
Der payrolls have been disposed Of II Is
not believed that there win be any dis
position on the part of the depositors TO
make a run for currency. Bankers who
have been IN town have IN many cases re-
ported cash reserves in their institutions
much In excess OF legal requirements. Some
banks which are not in central reserve
cities are holding cash to as high "A proper
ticn as 40 or 80 per cent OF their demand
liabilities. Evidence that pressure for cur
renoy Is diminishing is found In the state
ment Of the New York clearing house
banks ON Saturday. with it's actual increase
OF nearly S2oOO,0Oo in cash and its reduc-
lion OF the deficit IN reserves by over 81, ,O0O.-
ooa n this result has been attained with
Considerable gold still on the ocean and
not countins I'm reserves, It iH expected that
the statement OF neat week viii make a
still more favorable showing With gold
imports aggregating Ss5.OOO.OoO. including
what Ia on the way. with new bank note
circulation already taken to the amount OF
about ssOOOO.oOO within the past month. an
additional circulation in sight to the
amount Of perhaps &4O.OO0OOO. making a to-
tai OF new currency OF about SiS5.OO0.OOo
within the last few weeks It is not be-
neved that II will be necessary 20 so much
further in swelling the circulation. On the
contrary, It is anticipated that money will
become a drug In the market within a short
time. In the panic of 1898 lawful money
reserves stood on July l2. 1888. at $3.50 544. $50
which was the low point shown by the re-
port 70 the oomptrSiler OF the currency. but
increased BY the date OF the statement for
May 4 1894 TO st52,lOa.A4
hanks stand Up Wen.
The manner In which the national banks
have stood the strain has been very graft
Tying 20 tho comptroller. Less than
dozen failures have occurred since October
]. which ls not much above the average of
normal times. This Is IN striking contrast
Wish conditions IN 1898. when more than 1eO
FRpsnsions occurred at the height Of the
Fst,ic. Some OF the suspensions In 1898 took
plsseo before the suspension OF currency
p,.fmentH. which IN the present case pro-
te4.ed the banks from runs by deposltors;
b.. the fact that about half OF the failures
iL 1888 were not followed by re-opening
iHGscates that the situation at present is
ma sh stronger that az that time. The Gre
atm Of banks with capital below $4,000
st.A not iess than $4,000 has not appar-
si.ky impaired the general strength OF the
national banking situation The number Of
bo,iks on October 81. 1895. was S.7e5. with an
Rgsresate capital o. seo5. .S5slO. The num-
baF on October 81. 1901. was $3.50. with an
aggregate capital OF ts0s.ZAT76 The num-
ber ot new banks organized with q capital
- Sc sAs= s9ea - 9ea ssi,ee such nlz tinn
was permitted by the law OF March "A, 1900
has been 2,Sss, with an aggregate capital
" sB2Sl2,5o0 These institutions. therefore.
ahiis they have added only about per
sant 20 banking capital. have added a very
fauch iarRer proportion 20 the number Of
Institutions Reports compiled BY the
clmptroller OF the currency for state barka
isan and trust companies ana savings
isAnxs. on or ahoat June 30. last, shows
total resources Of Nil6s.14a6 OF which
oRT7e.T7AUl represents individual deposits.
N the case Of savings banks alone the
snmber Of deposit0rs increased over 1906
from 8O1ll lsl 70 S6ss.nl. while the amount
x deposits Increased from t,tse B7I@ 20
a6so.OlS9i5
Il 4 telt az the treasury that the irnmed-
nte emorEeney has 40 nearly passed that
h win not be necessary for congress 70