New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-09-26
MONEY PLENTIFUL IN j. s..
Treasury Predicts There Will Be
No Shortage This Fall.
BANKS STOCKED WITH GOLD
The Seasons Big Crops Will
Turn Balance of Trade in
Favor of This Country.

Washington. Sept. 25.-Tt is unlikely that
there will be any shortage of money this
fall anywhere in the United States. This is
the large. impersonal view of the Treasury
Department whose hand is on the pulse
Of the nations financial and business life
and represents the opinion of officials who
constantly watch for symptoms of any
stringency. In their opinion, the danger
mark. if there actually has been one during
several months past. has been left astern.
They give these reasons for their prediction
OF plentiful money:
Primarily. the banks saw what looked like
a money shortage coming several months
ago. They knew they could expect no help
from the United States Treasury, such as
they got in 1908, and prepared themselves.
They have piled up gold. built up reserves
and cut down risky loans. and bonds and
other securities which might not be easy to
sell have been turned into money. New
loans have been closely scrutinized.
By doing all that the banks have fortified
themselves against an emergency. How
well they did it was seen last week. when
sl0.000,000 was moved out of New York to
other banks and done very easily. Panics
foreseen never come financiers say.
Money is plentiful in England and on the
Continent of Europe. That is always said
TO be a good sign in making a prediction
for this country.
Nearly every crop in this country this
year is reported to be a bumper one. Corn
VIII set a new record. Four-fifths of the
crop has been gathered. so the chances of
loss from frost are small. The oat crop
is the greatest in years. The cotton crop
will be 100000 bales greater than 1t was
last year. Nearly all other crops are re-
ported very large.
Next month. II is estima ted, investors all
over the country will receive nearly s170.-
100000 in dividend checks from industrial,
railroad and other corporations. That will
add, of course. to the money generally in
circulation.
against a money shortage. because they
mean that the United States will have a
great amount of food and manufacturing
materials to sell TO Europe.
Europe. in the mean time, will be selling
material TO America, but undoubtedly not
to the extent it did last year. and, there
fore, will owe Americans money. This will
be paid in gold. Thus several more millions
of dollars will come into circulation for
business
The question may be asked why the
Treasury Department could not help the
banks now as it did in 1905 Because it
has not got the money. The expense of
digging the Panama Canal is from 100000
to AOoo,oo0 month and is a great drain
on the nations ready cash.
One of the best reasons why Treasury
officials believe there will be no money
stringency is that the national banks are
preparing themselves to issue $500, COO coo
extra currency. as the emergency currency
law provides, if they have TO- Through the
efforts of Secretary MacVeagh, banks in
most of the large cities have prepared
themselves and others are getting ready.
Mr.. MacVeagh believes the common knowl-
edge that such an immense sum is available
would stop any general movement to take
money out of banks and hoard il in stock
ings.