The Alaska daily empire., 1914-10-08
BANKERS PRAISE
 McADOO'S SHANE,

Nothing but praise is heard in local banking circles at the initiative of the Secretary of the Treasury in admon' ishlng the interior banks found guilty of hoardlng, A word by one high In authority was thought to be the only way to stop the practice, which had become a reproach in the crisis or 1907 when every banking institution was compelled to stand alone and un' protected. They depended then en- tirely upon their own resources to face the general uneasiness and IL was natural to find a bank laying Ill store of cash against all possible contingencies. But on this occasion the situation is different. For one thing there is not panic as there was in 1907. The disturbance here was on ly a reflection of the upheaval in Eur ope, but in the meantime the lead tug bankers have taken steps to safe guard the interests of the country,
 But, above all, the banks have to- day what they did not have in 19OH namely, emergency currency. It was said on that occasion: "lf we only had the machinery for expanding the circulation when an urgent demand for money arose there would be no occas- ion to hoard cash" Accordingly Con- gress forthwith drew up and passed measure which was designed for that very purpose. So there is no excuse for hoarding at this time.
 The secretary of the treasury is to be highly commended for his action in this matter. Now is the time when the banks of the country must be gen erous with their gold, if the steps at present being taken to satisfy our for eign obligations are to meet with sue cess. The secretary no doubt realizes that the New York banks are already doing their share in this particular.
 All through the 1907 panic interior banks complained they could not get the money they had on deposit in New York. That was their excuse for re. fusing to extend credit. The country at large believed the excuse. As a matter of fact, these banks held mil lions above reserve requirements.
 There is recalled the experience of one of the largest banks with a large bank of an important interior center. Coming to New York at the height of the panic the president of the interior bank declared he absolutely must have currency. Conditions in his section he said, were deplorable. There was no money to move crops, and business of all kinds was at standstill because of lack of currency.
 "If that's so," the banker was told, you shall have all the money you need"
 But the New York bank was suspic- ious. and told the interior banker to come back in one hour, Meanwhile, getting into communication by wire with the interior town. the New York bank learned that it's correspondent | had a reserve of 45 per cent.
 When the interior banker returned, he was told that his money was ready for him. Not only was the money he asked for waiting, but all the money he had on deposit.
 But I can get along without all the money" he said.
 "We know that" was the reply, "you can get along without any of it. But you are going to take it all. The ac' count is closed"
 The account remains closed to this l day.
 Bankers declare that in 1907 mum Der of the country bankers boasted of having a 30 per cent to 75 per cent. resrve. while New York correspond. ents had to pay premium for gold. Comptroller's statements of condition of national banks on Dec. 3, 1907, show ed that while central reserve city banks had a deficit of $3,503,000, coun' try banks were carrying a surplus of ! $1O3,752 .0O0. No doubt reports now coming in as of Sept. 12 are disclos. ing the same state of affairs.-Wall Street Journal.