The Birmingham age-herald., 1912-12-19
In Close Touch With Conditions

Ever since the present stringency be- early in the autumn the treasury depart early in the autumn the treasury depart ment has kept in close touch with the banking and business interests and the general conditions. Not only has the treasury q thorough knowledge of the views of bankers and business men m New York, Philadelphia, Boston and Chi eago, but of the leaders in financial oper- ations in many other active business cen ters. including St. Louis. Kansas City St. Paul, Minneapolis, Omaha, and the princi- pal southern cities. It is a significant commentary on the situation that omaha is in complete accord with New York, and that Chicago, conservative Philadelphia and Boston agree that there is no occa sion at this time to call upon the govern ment for aid.
 In these circumstances much surpr1Se is expressed in well informed circles here over the action of Representative Levy of New York in presenting resolution directing the Secretary of the Treasury to deposit $50,000G00 with the national banks to relieve the money situation. MT. leVY's estimate of the idle government cash that could be used was,a gross ex- | aggeration, according to what is said ir official circles, where there is gratihca- l lion expressed that no particular atten- ton was given anon gthe House mem- hership to Mr. Levy's suggestion In the opinion of the treasury officials the money strngency will pass without the extension of any help whatever to the hanks by the treasury if the excellent prospects of peace in Europe are verified by the conferences in London.
 No Real Distress Apparent
 As has been pointed out, there has been no demand that any reserve fund that the
 md la t1 ra- lieve the financial stringency. All the in- formation received here is that there has been no real distress, and that, while in- terest rates are high, merchants and other business men do not regard them as prohibitory and have not complained of inability to obtain loans for use in buy ing goods or other legitimate enterprises.
 In connection with the contention in some quarters that the stringency must be met by additional government deposits
 in banks, it is pointed out here that about S25. 600. 600 in national bank notes have not been used by national banks that have deposited United States bonds as securi- ty for issues to that amount Why, II the money stringency is as great as some people have represented it to be, these banks have not issued notes to the fiill value of their collateral deposits or bonds. is beyond the knowledge of the
 
 able about $3D 900, 900 of ? per cent govern nent bonds that could be obtained by the banks and deposited with the treasury as security for additional note issues. That advantage will be taken of the opper- tunity presented in these two instances to give relief to the money market should conditions require 1t, is the expectation oi the officials in Washington.
 No Resort to Other Securities
 Another thing which convnces the ad- ministra ation that the money situation Is not pressing is that there has been no suggest ion to the treasury department that resort be had to the authority given to the Secretary of the Treasury in the Aldrich-Vreeland emergency currency law to grant permission to local associations formed for that purpose, to issue circu- latinr notes on the security of state 1nu- nicipal and other non-federal bonds. Oi course. one deterrent effect on such ap nlication is that this currency is taxable at n high rate but treasury officials are apparently satisfied that resort would DC had to this method if the situation were at all pressing.
 Summing up conditions as they are un' darstood here. bankers and merchants all over the country see TO present reason why inc treasury should come to the re lief of the money market. The treasury is willing to do its part should occasicr arise. but in the meanwhile It IS takihs much satisfaction in the practically uani- nous backing it is getting in its con serVatiVe course.