Coeur d'Alene evening press. (Coeur d'Alene, Idaho) 1907-1929, 1908-01-28

hIuluB MS HHauCldl Dlll anu the
ryiew with Boyd Hamilton, CASH
of the Occur d'Alene Bank &
st company, to which he refers,
ator Hepburn has this to say:
have before me your issue of
uary 18th. l notice your editorial
regard to the financial measure
ch l recently introduced in the
ate in which you suggest that the
wer, published in the same issue
gour paper, from Mr.. Boyd Ham
IA, is a complete humiliation of
financial measures suggested by
bill. | would call your atten-
to the fact that Mr.. Hamilton
evidently been misquOted or has
t had the benefit of an investiga-
Bn of the report of the Comptroller
/ the Currency as to the amount of
5posits in national banks upon which
deserves are required to be carried.
He inadvertently says that the de-
Osits against which reserves would
required amounts to thirteen bill
ion dollars. This item really repre-
ents the gross deposits of all the ma
Hional and private banks, trust COM
anies and insurance companies in
he United States. No reserves are
equired by any Act of Congress ex-
ept against individual deposits in ma
Iional banks upon which reserves are
lequired to be carried. He inadvert-
lntly says that the deposits again t
which reserves would be required
amounts to thirteen billion dollars.
Fhis item really represents the gross
Deposits of all the national and pri-
banks trust companies and insurance
companies in the United States, No
deserves are required by any Act of
congress except against individual
eposits in national banks. The
ational banks carry in round figures
ss than four billion dollars of in
vidual deposits against which re-
rves are required to be carried. A
Fenty per cent reserve against this
mount would be not to exceed eight
pndred million dollars. The people
all times carry in their pockets
hd tills much greater sum. 1t is
Pnservatively estimated that they
us carry about one billion dollars
bis money is perhaps more actively
circulation than any other money
pc eight hundred million dollars
hich would represent a reseve OF
Fenty per cent is about one-fifth
the actual money in the United
ates. Under existing law no re-
rves are carried against deposits
reserve banks deposited in central
serve banks in New York City
serve banks so that when the coun.
reserve banks send their reserves
central reserve banks in New York
y. those banks are not required tc
Try any reserves against such de,
pits, and do not.
Mr.. Hamilton further suggests
1t is necessary to send these re.
YES to New York in order thai
may make drafts against thai
d. He has lost sight of the fact
they can only make draft.
INST their free money and wher
send reserves to New Yorl
KS they cannot use them for tbs
pose of making drafts against
m without violating the law. Ht
fuses the free money which they
e IN New York with the Lawful
erFes which they carry there
pen Mr.. Hamilton states that Their,
not enough money in the country
permit of reserves being set aside
suggested in the bill which ! in
pduced, he entirely loses sight o.
financial statemnt of the Comm
Her of the Currency. which Is mn
otedly correct He conclude,
at If the plan suggested in the bill
Pre- carried out there would remain
" about three hundred million
2iiars for circulation, losing sigh
the ready money carry by tn,
eopie and of the margin betwee,
ght hundred million and three bill
on dollars OF actual money less IN,
poney carried in the government
treasury.
I would suggest that the lettel
hich ] sent out was intended I,
raw an opinion from banking men II
rder that I might see the situation
rom their point of view, but II va,