Show I LESS STRAIN UPON NE YORK BANKS Influx of Gold From Abroad Has Relieved the Tension to a Great Extent ABOUT ABO T READY TO RESUME TREASURY CERTIFICATES EVI EVIDENTLY DENTLY Y NOT NEEDED New SeW York Nov No 24 The announce announcement announcement announcement ment before the beginning ng of ot last weeks operations of the government offering of of Panama bonds aUd d ot or of 3 per pr percent percent cent treasury notes aroused bright ex Cx expectations expectations of decisive results in break breakIng breakIng breaking Ing the currency famine by the attraction attraction attraction tion that would be offered to hoarders of money moncy of an absolutely secure gov government government goVernment obligation during a period of distrust of unusual investment facilE facilities facilities ties The good Influence of the meas measure measure measure ure on sentiment waned during the week principally by reason of the com corn complexities complexities discovered in the working out of the project Detailed information was isas not made public of the amounts mounts being subscribed by private capital On the part of the banks the preparations to participate in the issue were found to affect the money and currency mar markets markets markets to some extent and there was much confusion in estimating the working out of the effects of the transaction I I Gold From Abroad Meantime the inflow of gold from abroad continued in a It steady stream and large additional engagements con continued d to be made For the first time during the present movement the Bank of France furnished part of these sup supplies plies the transaction being based on commercial bills of exchange The new source of ot supply thus opened up is considered of great importance Various indications served to prove how far the general banking g situation has been strengthened by the heavy withdrawals from New York and the of incoming gold as it ar as arrived arrived rived Thus the reports of conditions of Illinois state banks in response to the call of the state auditor showed an increase of many man millions in cash holdings compared with the previous report in August while outstanding obligations has been heavily reduced The Canadian banks made reports in response to a similar official call dur during during durIng ing the week and these revealed a alike alike alike like showing which proved the large larg drain from New York to that destina destination tion with an accompanying scaling down of loans on call without the Do Dominion Dominion Dominion minion largely placed in New York stocks Awaiting the Next Call Bankers are awaiting the next call from the United States comptroller of the currency the usual period for which is now passed There is grow growing growIng ing big conviction that response to this call will show the general banking po position position position so 50 fortified by the strong cur current current current rent of cash which has flowed out of New York and out of ot foreign sources that the feeling of mutual suspicion and distrust which have been by far the most potent factors In the recent embarrassment will quickly die out outA outA outA A prompt resumption of normal bank banking bankIng banking ing conditions will be looked for as a consequence The weekly bank state statement statement ment of the New York clearing house association banks was heralded as de dc decisive of the definite turn toward bet betterment beh betterment in the New York banking sit situation situation Loans contracted for the first time since the crisis developed and the small cash decrease was evidence that the concealed drain on the banks has come to an end the decrease proving less than was promised by the known movements of money in spite of the throwing out of the computation of the gold arrivals on Satur Saturday Saturday Saturday day which were belated for a day by bya a fog Stock Market Pressure The stock market was under inter intermittent Intermittent Intermittent pressure last week which was severe in special stocks and at inter intel intervals vals vats of time At other times the stock market mark t showed symptoms of at resiliency which was slight however and attrib attributed In large part to covering opera operations o operations era by professional bears The weakness was assigned by general be belief belief belief lief to a resumption on of liquidation of ofa ofa ofa a kind which was withheld from the marli t during its period of demoralization demoralization by the powerful Influences and resources of the interested parties but buton buton buton on condition of closing out of the ac accounts accounts accounts counts and payment of indebtedness as soon Eoon as the market subsided into more orderly condition It was sur surmised surmised surmised also that the practical subjugation tion of the affairs of the New York banks t the centralized control of the Continued on Page 2 LESS STRAIN UPON I NEW YORK BANKS Continued from Page 1 clearing house authorities through Its Us loan committee which Is Involved by bythe bythe bythe the issuance of clearing house certificates certificates certificates cates has brought the loan accounts of the banks under a scrutiny free from all collateral Influences and impartial in Its requirements The Tho result has been an exercise of discrimination against some existing accounts which exacted their liquidation on forced terms Maturity of time loans on which renewals were refused was an another another another other factor In the urgent selling which appeared in individual securities both bothIn In the tho stock and bond list These clearing up processes were an inevitable after effect of the turbulent events which had prec ded It and such operations are to be Interpreted In the light of those past events rather than thanas thana as al a a reflection of current general con conditions conditions The liquidation has been pain painful painful ful by reason of the inadequate de do demand demand domand mand to absorb it new buying being restricted from the same causes that necessitated the liquidation the prin principal principal principal cipal being heing the continued stringency of the money market While the process was a painful one It was effective nevertheless In correcting the position The buying In small lots for invest investment Investment Investment ment continued a marked feature of the market and while not sufficient to stay star the downward course of ot prices was a factor in bringing funds back into the channels of banking opera operations operations |