New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-12-20
PRICE THREE CENTS.
BANKS GIVE MORE RELIEF.
LOAN FUND OF 100000 GIVEN TO
THE MARKET.

MITrEE OR BANKS 10. HELP
DEPOSIT OF INTERNAL
REVENUE RE-
cEIPrs
Banks OF the Clearing House Association. which
on Monday afternoon arrested the panic In the
stock market by sending $S,00O.O0O OF loanable
funds into the Street. yesterday again came to
the relief OF the situation, making up a further
fund Of S10O00O00 which promptly placed
at the disposal OF the market. This action sup
plemented by the better feeling in London and
the announcement that the Secretary Of the
Treasury would deposit internal revenue re
cepts with the banks had speedy and potent
effect in lowering the rates for call money and
in advancing the prices OF securities the market
closing with the general list ruling much higher
than at the close Of business Monday.
The Clearing House Committee met yesterday
morning and was in session for forty minutes.
After the meeting, which adjourned little be-
fore noon, It was announced that the sum OF
S10000O 900 had been subscribed by number OF
banks for use in the stock market. this sum to
be loaned by President Tappen OF the Gallatin
National Bank on such terms as IT might seem
best to him to make. The banks subscribing the
S10OOO000 said to have been the Gallatin
tional, the First National the Fourth National,
the National Union. the Chemical National. the
Chase National. the Hanover National. the Ma
tjonal Bank of Commerce. the Corn Exchange
Bank and the Bank Of the Manhattan Company.
1t was the sense Of the Clearing House Commit
tee at this conference that the situation did not
call for the issuance OF Clearing House certif-
Gates
Yesterday afternoon another meeting of the
Clearing House Committee held. at which
the following resolution was adopted, Its object
being to enable the banks 10 take full advantage
OF Secretary Cages offer of Monday to increase
the deposits of Government moneys in the local
depository banks:
Resolved. That the Clearing House Committee
their United States bonds to the Clearing House
of facilitating the deposit Of internal revenue re-
cepts in the banks. and I'm this manner relieving
the money market.
1t was reported at the close of the day that
this request had met cordial response from
many OF the trust companies about S200OO,OOO
of United States bonds having already been
turned over to the Clearing House Committee
or the banks. The trust companies are not
unanimous in complying with the request. how
ever John A. Stewart, president of the United
States Trust Company for instance, said yes
terday afternoon:
The banks had better mind their own busi-
ness There is plenty Of work for them to do In
conducting their business, and they had better
leave the trust company men TO manage their
own affairs No / haven't received any resolu-
ton from the Clearing House Committee.
have heard some talk about It. but II there is
any such resolution they had better rescind it."
prominent trust company executive, whose
ha civ Of
House Committees suggestion:
NO one is going TO get me to break law"
REPLY FROM MR.. TAPPEN.
President Tappen, Of the Gallatin National
Bank. on these animadversions being repeated
to him, replied:
Then why did the trust companies create
this condition? They created 1t by calling all
their loans yesterday and not lending any
money We found the market rushing into
panic. and we held a meeting and put money
into the market. The syndicate money to-day
was started at 20 per cent, and was loaned
down to per cent, about $5,0OO,OOO, one-half
the sum subscribed, being placed out on call in
the course of the day"
Another well known bank president said OF the
attitude of some of the trust companies:
We found the situation growing desperate and
loaned money TO relleNe II. II biS itooiutioh
adopted by the Clearing House Committee looks
to a violation of the law, or IL there Is any I'M
proprety whatever in IL, the trust companies
need not loan their bonds. But ] understand
that their response TO the committees resolution
was quite general among the larger companies.
and that some OF the smaller ones also turned In
bonds.
While the resolution of the Clearing House
Committee was addressed to the trust compa-
nies of New-York" several OF the largest or
these institutions-among them the United
States Trust Company. OF which Mr. Stewart
IS president: the Central Trust Company
the Farmers Loan and Trust Company ana
the North American Trust Company-haVe
10 official connection with the Clearing House
Association Sixteen OF the local trust compa-
nies are in a sense affiliated with the Associated
Banks by reason Of effecting their clearahces
through Clearing House institutions these trust
companies being the following: The Atahtio
Trust Company. Colonial City. Continental.
Fifth Avenue. Knckerbocker. Manhattan Mer-
cant,le. Metropolitan. New-York Security and
Trust. Real Estate Trust. State, Trust company
Of America. Union United States Mortgage ana
r,r,st and the washington Trust Company.
Tho sub-Treasury yesterday received from
,, denositorv banks United States bonds 10 the
aoereeate amount of Sc, 800, 500. which were de-
nosited TO secure internal revenue receipts whlon
will he lodged with the banks under the terms
of Secretary Cages offer 1t is estimated that
these receipts will come TO the banks at the
rate OF about SlO000O0 day thus steadily
swelling the amount Of money which can ne ap-
piled TO the relief of the markets needs IL
yas ronorted Yesterday that the Clearing House
Committee might soon endeavor 10 secure from
local savings banks as well from trust COM
nanies loans of United States bonds which
could be deposited with the sub-Treasury as
collateral for additional Government funds 70
be placed on deposit with the depository banks
INDIVIDUALS APPEAR AS LENDERS
The National City Bank yesterday received
about S4OOOOO0 OF Government deposits. and
.......l.. lnnnad this ann ON call al per cert.