Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1893-07-23

OF the New York banks were fearful
that Is would DO necessary for them to
call 10 some Of their heaviest loans be-
cause Of large withdrawal Of deposits
that had been made by customers In or
der 60 tide over the then approaching
July L Had it been necessary for them
70 take this course, the situation, al
ready strained, would have immediately
become critical, and 10 was decided oy
the Clearing House association 70 relieve
she tension by the issuance OF clearing
house certificates, which should De
treated by the banks and the clearing
house as cash in the settlement OF bal
ances and other transactions from day
TO day.
One OF the strongest banks in the
city led OF by taking very large
amount OF these certificates, these being
secured Ia each case by the banks de-
hosting bonds and other securities that
we're thoroughly gilt edged, 70 per cent
only OF the value Of the securities GeDos-
ed being issued IN certificates. As all
newspaper readers will remember, this
action on the part Of the clearing house
produced the desired result, and toe
serious trouble that was feared was
averted.
Another great financial power In New
York IS welded By the savings banks
OF them it has been complained In some
Quarters that during the present strln-
gency they have boarded their money
aud thus contributed 10 the general
tension. But lon their own defense they
say that. while 10 Is true that they have
sought TO Increase their surplus as
much as possible, this has been done IN
order 20 protect them from nervous de-
pOsitOrs who might Ia case or sudden
and uureasonlug runs not fully proyld-
ed for by ready cash Ia the vaults OF the
banks UreciDltate the panic every one is
arriving so hard TO beat back The saw
ings banks control many millions, ana
though their power is silent IL IS great.
They are under the control OF the state
authorities and are not directly con
nected with the clearing house In any
way.
The trust companies are another pow
erful factor To the finances OF New YORK
and the country. They may not have
membership in the clearing house, but
i'm most instances they have sort OF
left handed connection herewith
through the fact that their st0ckhoid-
ers are often practically the same.
Although the national banks or New
York make vast sums Of money, ana
one OF them, the Chemical, is the most
DheuOmeually money making institution
% the world, yet the trust companies
possess advantages ia the field or PRONE
not shared by the regular banking in-
stitutj0us. The national banks canno,
act as trustees for estates and are
limited to discount rates. These re-
strictl0ns are not placed upon the trust
companies, aud they are therefore very
valuable ina the REORGANIZATION OF rail
road companies aud other corporations
and 10 turn reap large rewards for their
services TO tbis direction.
Not long ago one OF these companies
made nearly 81, 100000 iu fees through
the reorgauizar ot a corporation, sua
a similar golden reward would haV'
been realized by another company dur
ing the present month had not the pres
snt striugency come upon US. The men
who control the trust companies are
among the abIest 60 the land. Fred OIL
cott served two terms as Comptroller OF
OF the State, and had he stuck to polite.
might have been made governor. e. ).
Fairchild is we'll known as secretary OF
the treasury during Mr.. C.eve,and's nrsi
term. John r.. Stewart ia not very vel.
known GO newspaper readers perhaps,
but IN financial circles he is recognized
as an exceptionally braiuy and sagacious
man, and his name is q Of strength
among tuanCiers.
After the trust companies come the
private bankers, DreXsI, Morgan "
Co., Barry, MagOun IL Co., and 80 on
though they are not so strong 10 The
bankiug business proper as In "hnanc-
ing" The insurance companies are also
a great power, and the banking depart