The Washington herald., 1908-02-25
CALLBACK CURRENCY
Secretary COrtelyOu Asks %
Per Cent of Deposits.
WILL AFFECT LARGE BANKS
Treasury Department Takes Hopeful
View Of Financial SItuatIon-COn-
Those Prevailing Year Ago.
Country In Healthy Condition.

The financial str.ngency which became
acute last December has subsidcd to a
point where the Secretary of the Treas
ury feels justified in recalling approx
mately S35.O00OO0 frola depositary institi-
tions. into which large sums were paid
near the close or last year to tide over
the panic. Secretary Cortelyou is OF the
opinion that a partial withdrawal Of the
loaned funds from the banks into the
Treasury can now be made without harm
to the financial interests Of the country.
With this end in view he issued the fol-
lowing call yesterday:
The Secretary Of the Treasury announces A call
upon national banks for approximately . per cent
Of the public funds now held IN inactive depositaries
having deposit such funds in the sun Of 500 600
or more. and 3 per cent OF the Public funds now
held by active depositaries where the deposit is
$1,000 Of such funds. or in excess thereof. and
where such withdrawal can be made without incon-
venienee 70 the Treasury Department in the trans
action Of public business
Payments under this call viii be mads a. follows,
Ten per cent Of the amount called on or before
March 9. and the remaining Is PER cert on or be-
fore March q
The Secretary stated that advises from
all portions Of the country are 20 the ef-
feet that this proportion of the govern
ment funds now on deposit with these
national banks can be withdrawn without
detriment to financial conditions in any
section.
Fifteen Per Cent of Whole.
At the close OF business yesterday the
amount OF deposits of government mon
eys in the depositary banks was approx
metely S24O, 100000. The Withdrawals called
for. therefore, constitute about Is per
cent of the whole
The Secretary's action was not prompt
ed by any special need of money by the
government, although the working cash
balance in the Treasury is only about
S24,0OOooo. The Withdrawals mean that IN
the opinion Of the Treasury Department.
the volume OF money in the chief hnan-
cial centers is now large enough to JUS
tify a moderate contraction.
While bankers, brokers. and business
men generally are much at variance as to
the causes of the financial stringency OF
last year, and while probably no two Of
them meeting together TO discuss the sub
ject will ever agree. II is fact that con-
ditions affecting the use OF currency at
the present time show a striking contrast
with those which prevailed a year ago.
Then business, speculation. and enterprise
was at flood tide. Greater demands upon
capital were being made than ever before
in the history Of the world. Expansion of
trade. industry, building. and enlargement
Of facilities were in the financial air The
active energies Of this country and the
world were abnOrmally vitalized. and con
hdence in the prosperity OF the country
and the world amounted almost to mad
ness.
Money Panic Calls Halt.
Then the grip of the money panic was
laid upon the shoulder of progress. lightly
at first, as If in friendly warning. and
then with the voice of authority and
command. and summary halt was call
ed upon speculation and trading upon the
future with nothing to pay.
Now the panic has passed. Inflated
securities have been wrung dry. sanity
has taken the place of the money-mad
insanity OF twelve months ago. There Is
now a positive disinclination 70 embark
in new enterprise. unless the cash is in.
hand and the way clear for fair profits
Speculation is lifeIess Talk Of expand
ing credit is replaced with reserved ex
preston Of getting along for another
year with existing facilities, and men IN
Another Reduction. Get Our Price List.
Frank Libbey & Co.. 9Th & n. 7. ave- NV.