New-York tribune., 1908-01-05
PRAISE FOR CITY BANKS
NO MORE WITHDRAWALS.
Misappreheasion Likely TO Be Dis
PEELED By Inszoer to Resolution.
IFrorn The Tribune bureau.

Washington, Jan 4.-Treasury officials indi-
cate day that after another payment of a
percentage of the deposits held in New York
City is made Monday. the condition OF the
working balance of the Treasury Will be such
that the department will not be warranted in
making further Withdrawals of government de-
posits from New York City banks for the pres
ent The working balance to-day was about
sS 100000. 1t is expected that with normal re-
ceipts the balance will be in the neighborhood
of s10,O00,000 in the coming week While no
official statement is made as to the amount or
money withdrawn from the New York banks.
there is reason for believing that ii does not ex-
ceed s10NoO00O The Treasury will continue
with its present working balance, and if no
unusual demand is made on it balances will not
be withdrawn from interior banks. 1t is the
opinion of Treasury experts. however, that this
action cannot be long delayed
The attitude of the New York banks from the
point of view Of the government has been a cor
rect one. Some of the popular msapprehen-
sion and prejudice against the banks of New
York City will. be dspeed when the answer Of
the Treasury Department to the resolution of
inquiry is sent to the Senate. 1t is realized that
much of the information called for by the Sem
ate resolution is not procurable in the regular
records of the department, but in these cases
the department has strained point and has
called on clearing houses and other authorized
sources for the information. Among other
things, the reply to the Senate will show that
while it generally supposed that the New
York City banks holding on to every cent
they could get hold of they were actually send
ing millions of dollars into the interior, while
the banks in the interior were engaged in build
ing up their reserves far above the legal per-
centage. All these things will be shown, as well
the further fact that the deposits made by
the government in New York City were in no
way disproportonate to the capital of the
banks, and not at all dsproportonate to the
amount deposited in Western and Southwestern
states.
The next problem to be met by the banks and
the officials of the government is the reduction
of the circulating medium. Statements at the
department show that there has been an in
crease in circulation until there is now about
S1O0.O00,000 in the country Under the Aldrich
act it can be retired only at the rate of $1,000
coo month. 1t is expected that within COM
paratiVely short time, with the Improvement in
general banking business and the resumption Of
cash payments, there will be rush retire
portions of this circulation. The Treasury De-
partment in this event will probably say to the
banks that they best effect retirement by
giving up portion of their deposits. The de-
partment is determined to recall percentage Of
the generous amount of deposits iii the country
in the coming spring and summer months to
meet extraordinary expenses of the Panama
Canal, and also the S5O000O0 payment to Okla
homa, which must be made demand. The
manner of returning these deposits or per-
centage Of them to the Treasury will be made
easy possible for the banks of the coun-
try.