Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-01-30
SEC. C0RTEL Y0U
SENDS HIS ANSWER
10 Senate Resolution Asking Details Of
Recent Panama Bond Issue and
the 3 Per Cent. Certificates,

suits of the call revealed what was ex-
pectcd in we'll informed uuarters-that
much of the currency withdrawn from
New York had been added to the reserves
of interior banks, and that their position,
was exceptionally strong.
$50 rapidly did the money market i'm
prove after the tide had once turned.
that the call made by the department
upon the banks early in December for
the return Of s5,oo0000 was followed on
Jan. - by arotner call for about $1,000
600 from New York banks and this will
be followed by a call upon banks outside
of New York. which will be based upon
local conditions rather than upon the
payment Of a fixed percentage Of their
holdings Of public money. Letters receiv-
ed from New York and other points in
dictate that this money can be surren-
dered without difficulty and that other
calls can be made in the near future
without irficting hardship.
The secretary did not feel called upon
at any stage of the crisis to interfere d.
rectly with the normal movement of gold
between international markets.
After short period Of uncertainty.
however exchange turned strongly i'll ia
vor of imports of gold into the United
States and by the end of October en-
gagements of over S24.Oo0O00 were an
nOunced which We're eventually swelled
during the next two months to more than
sl00,000.09. None of this gold arrived I'M
til November but the moral effect of the
engagements was felt as soon as they
We're announced.
justification for taking vigorous action
to arrest panic is found in the remark
able figures of the disappearance of cur
rency during the period of about six
weeks from the suspension of the Knck-
erb0cEer Trust Co. on Oct. - until con-
fldence was partially restored early in
December The amount of currency which
disappeared from sight during this pc
Rod, as nearly as can be ascertained from
the national bank reports and other
sources of information, was about Sc
OOc 900.
The issue of new securities by the
treasury department was influenced by
the conclusion that it was advisable to
take some strong and resolute step which
would convince the public. both at home
and abroad. that the government was
thoroughly alive to the situation and Ge-
termiEed to give it's aid nj every posi-
bic form
The banks Of New York City held on
Aug. - only SIS, 22553, $50 in deposits of pub
lic money. aside from certain balances
of disbursing officers. or considerably
less than per cent. of the national bank
ing capital of the city. 1 have not de-
posted a dollar of the public moneys in
the national banks Of the country upon
any other basis than that of the public
interest.
While the secretary Of the treasury felt
compelled, in order to meet the exieen-
cies of the situation, to increase depos-
It's largely In the banks Of New York
City. even the proportion left in their GUS
tody after the panic had subsideI was
smaller than the proportion certain in
other cities and states On Dec. :, 1907,
the amount of public deposits i'll the en-
tire country was seoe, IS, %, which
amounted to 153 per cert. of national
banking capital and surplus amounting
to N451, 2a6, 366 While the banks of the
state Of New York appear as holders OF
public moneys to the amount of :6.S per
cent Of their capital and surplus. the
Continued on Page Tenn