The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-12-23
N. 7. Associated Banks Hold
Sunday Night Meeting
And Decide to Issue Clearing
House Certificates
AS IN THE '93 PANIC.
This Decision Relieves the Ten
sion in Wall Street
And Stocks Show an Upward
Tendency.

NEW YORK. Dec. 23.-The clearing
house committee of the New York asso-
ciated banks met last night and decided
to recommend the issuance of clearing
house certificates. Another meeting
will be held to day to arrange the de-
tails
The temper of Wall street at the open
ing today was more hopeful owing to
the higher quotations made for
American securities in London. 1t
was recognized that the character
of the early cables wouid determine the
course of the New York market. The
street was again crowded with outsiders
who thrOnged the entrances and gale
ries of the exchange.
The opinion had been gathered from
the newspapers that Monday would be
feld-day in earnest. The brokers were
out early and anxiOusly exchanged orln-
ions as to the probable course OF the
London prices. The early cables caused
profound relief, as they showed advances
ranging up to 224 per cent on 81 Paul.
The only important exception was a de-
cline in Canadian Pacific of 258.
Other reassuring reports and rumors
were current 1t was announced that
the clearing house committee of the New
York stock exchange had decided to
issue certificates, as upon former occa-
sions, and this, it was known, would eX-
ert decidedly beneficial effect in avert
ing trouble, if any were impending.
The scene in the stock exchange at the
fall of the chairman's gavel announcing
the formal opening of business was deep
" impressive. The outsiders were, Of
course, unaware of 4he change for the
better in the sentiments of the brokers.
The opening was even wilder than it had
been.
NEW YORK, Dec. 23-1 T. IN. The
meeting of the clearing house association
adjourned after giving the committee
auth oritv to issue clearing house loan
certificates to an unlimited amount
Form of Clearing House Cov.1nistee-
The personnel of the clearing house
loan committee is the same as it was in
1898. 1t consists of Frederick Tappen,
chairman; Gallatin National; ]. Edward
Simons, Fourth National; II. w. Cannon,
Chase National: Williams, Chemical;
Perkins, importers and traders and Nash,
corn exchange. The certificates will be
issued at per cent and a com
mission of 1-16 per cent. No
applications for certificates had
been received from any of the banks.
The scheme of clearing house certif-
Gates. which originated in the panic OF
1878, and was adopted in the panics of
1884, 1890 and 1898. is simply plan for
union between the clearing houses.
Each individual bank needing the
certificates puts up abundant
collateral which the certificates them
selves are to the obligations of the en- :
tire association CT New York banks
making them unquestioned security.
This combination prevents the weaker
banks from being pressed and in turn
enables them to deal justly with their
borrowers in panicky market.
The scheme, however, does not protect
or render assistance to banks that
are actually insolvent. Loan certificates
will be issued up to 75 per cent of the
value of the securities
Heretofore the clearing house banks
have acted slowly in the issue of
certificates, and complaint was made
that the evil had been wrought be-
fore remedial action was take en-. The
promptnsss of the present action has
stimulated the rally in the market, aud
has great weight in influencing a revi-
val of purchases of our securities.