| Show HOARDED MONEY MONn ONLY OBSTACLE Financial Troubles Will Be Over When Stockings Give Up Their Cash CORTELYOU URGES POINT POI NT ALL DEPENDS ON THOSE WHO SALTED IT AWAY New Nw York Nov 16 I believe peU la Secretary Cortelyou Cortelyon to tho the Merchants I association in New York YorI that if the money of ot the country wherever hoard hoarded ed were at once onca put back t to t fulfill t um its functions in the channels of trade there would be bo within hours an almost completa resumption n of ot business operations It Itis is upon the situation thus adverted to that attention converged d in the finan financial cial dat world during all of ot the past week weck The sept seat of the difficulty was the sub subject subject subject of constant and somewhat differing discussion but the differences did not check heck the diligent and powerful efforts to remedy the difficulty and the Ute declining declinIng ing lug tendency of the premium on cur currency rency was the tho index of ot o the growing success of these efforts The premium on currency is increasingly understood to be in reality a discount on bank ban checks hecks caused by the dislocation of ot ex exchange exchange change hange operations growing out of the widening effects effe ts of ot the shock of the up upset ups set st s t In lit banking affairs affecting the runs on trust companies in New York Deliberate Hoarding It t is acutely observed however that the payments payment a for the currency and at a premiums in these transactions have havo been b en in certified checks on banks and that the proceeds ds of ot the transactions have found their way into bank depos deposits its Us notwithstanding that the holding of the currency curien was was w supposed to t involve a distrust of ot the banks From this thi it is inferred that the conditions were pre pro precipitated precipitated in no small part by the deliberate deliberate deUber erate er te hoarding of money mono on ona a large scale by speculators who sought nought to profit In the oo operation Severe S version n on such a course cour of conduct is much heard It is estimated however that the effect of or the ruling premium on currency has h s already dy been to draw out from hoarding a very large proper proportion tion of f the tho cash which was withdrawn from the th New York trust trus companies during the t ti runs and thus it to the channels ch nal of operations Money in Interior In Banks Ban s Another Aoth r factor in the depletion of currency cu ur ncy which has received d growing attention has been the movement of oC money moe into interior banks b where it I apparently disappeared in large l rge part as completely co from the th channels if t cir Ir as a the th sums sums previously prel uh 1 ord cr ed in New York York The condition of the interior exchanges on mi New York re reveals reveals reveals this fact Deposits of interior Inter r banks banka in the York banks baks have been drawn down to such an extent that exchange on New York Is almost unobtainable at t many important tout out outside outside side centra cen rs Remittances to lo New NewYork NewYork NewYork York in payment of ot obligations are areL L correspondingly difficult and arc are made in many m ny Instances by checks he on inte Into When Wh n these ari deposited in New ew York STork they are accepted sub subject subject subject to collection cle ton and this Involves a adelay adelay delay deay to await receipt at of cash cah as as de do deposits posits in New York ork are inadequate to meet them Criticisms heard that this condition o dlton fa J duo due to t heavy accumulation aCe mula tion t s of dash ash in the tho reserves of ot interior banks b ps which were prompted as a 1 pre precautionary cautionary measure against the decided ed shock of ot the original disturbance but which it I is urged have bee been ex cx excessive excessive Plenty of Money It I is s notable that the seeming famine of currency curr ny Ire In the ta fa of an actual volume of ot of money In Circulation ir laton or available for tor circulation larger than ever before b tore The monthly statement of I I the treasury department showed the amount of all n kinds of money mone in circulation lation la at n on Nev 1 to be which Wl was y as an increase compared with Oct Oct 1 I of more than represented largely by br the deposits of gov government government ermen funds which were made nade with wih the banks bunks after the crisis developed d in October Since that time receipts from abroad abro of or more than of ot gold and a rapid expansion of banknote is issue issue sue 1 I fue supply has liberally Ib ral replenished the tim Nov NovI Will Wi Come With a Rush With the stream of incoming gold running still Mill sti at full tul tide tte early erly relief Is looked for from the present condition E Moreover with wih the first of distinct relief relict it I is expected that all al barriers barrier will wi quickly fall tal which are at present withholding cash from froni the channels hannel of or activity and nd the return flood food will wi come with wit a J rush The time when this will wi happen depends on the state of Pt f mind nind which h are so con rather than on events in the material world The happy and prompt results to follow from the attainment of ot this statement of mind which are so son depicted by the words of Secre Secretary Secretary Secretary tary Cortelyou are so obvious that hope is l strong that it I will come at an early period and so release the country from the toe worst wor pf of its Ia present embar embarrassment embarrassment arrest the harm that Is being done and leave leavo the way open for imme frame immediate immediate diate repair |
