The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-12-21
THE BANKERS SYNDICATE
Will Get the $5O,OOO,OOO by Drawing
on Their Reserves.
THE ROCKEFELLERS ARE NOT UNEASY
Have Been Selling Securities for SIX
Months-Moruan Not So Stable.
Steel Trust Manipulation.


New York, December 20-tStan Specially
One OF the most interesting questions Of
the hour is how the bankers syndicate
that promised to raise S50,0uO,O0o FOR help
ing the money market in case of emer-
geucy will be able to fulhll Its task. With
the surplus reserves of all OF the clearing
house institutions down TO quarter or
that hguIe aud With no prospect OF heavy
receipts OF currency from the interior be-
tween now and the end of the year, N0Il
street was much perpleNed TO understand
how the thing could be done. Some or
the critical pronounced the scheme q fake
Tor the purpose Of affecting sentiment.
Inat the plan was partly devised Tor TINS
purpose there is NO question, but that lead
ing huanclers thought IL was necessary
10 provide against a possible catastrophe,
in case the unexpected occurred, Is also
true While the Venezuelan situation I'M
pressed some as grave the best opinion
opinion here Is that the whole thing viii
UlOw over.
But meanwhile, the stock market will be
subject TO squalls, such as has been Wit
messed this week, and Il is for Just such
emergencies IN case u scare of any proper
lions should occur, that the bankers syn.
dicato wanted to be ready. officials OF
most OF the participating banks said they
money, but what Wall street wants 70
know Is how they are gong TO do Il, in
case the situation should require II. Here
are the particulars which thus far have
been withheld:
The banks Interested which include the
National City First National, Bank Of
Commerce, Chase National and Western
National, will dip down into their reserves,
Y necessary until they have furnished
the amount they pledged regardless of the
- Per cent requirement. under the Ma
tlonal banking law II they did this they
might get down 10 IS TO 20 per cent even.
Tho comptroller Of the currency would, OF
course, notice this and II the reserves were
allowed 10 remain that way. no doubt be
would call them down sharply. They have
thirty DAYS however, IN which 10 restore
their reserves BY adopting this plan most
main above the legal limit and the clear
/ ing house banks as a whole VIII make O
| good showing. Hence sentiment is not apt
/ 70 be unfavorably affected. as IL might be
| u there was a depletion OF reserves all
\ around
| 1t had been said that advantage would
be taken OF the privilege offered by Sec
/ rotary Shaw that no reserve need be carried
/ against government deposits. This might
| be done In emergency, but the banks dc
| not want 10 admit that the situation could
/ become SO aggregated as 70 render such Q
proceeding necessary. IT VIII be interest
| Ing 10 note how the public would take
a large reduction ia the cash reserve Of
I the biggest banks In the country, IhoS
| are hoping that no emergency will arisC
| to require such a thing.
] THE ROCKEFELLERs FIXED
! The scheme Of bank relief was devised
by j. Pierpont Morgan, and the STANDARD
| g. The banks included, II viii he noted
are only those controlled by the Morgan
and Rockefeller people. II the truth mus
| be told it should be sStd that the Noske