The St. Louis Republic., 1903-10-29
snrInIrY oF ST. LOUIS.

Now that the unWarrauted excitement among TIE
small depositors Of the trust companies has been
dSsipated. normal conditions VIII he rapidly re
stored and common sense will show how absurd
was the fear Of loss However. this opportunity to
appeal to the fair Judgment Of the people should
not be allowed TO pass. There would he no anxiety
among small GeposItcrS and there wo'!d be no rush
10 withdraw money If the position. security and
methods Of savings institutions thoroughly un-
derstood by every one.
1t may be stated with emphasis and in all truth
that the financial institutions are safe and that
there has not been at any time the least reason for
thinking, suspecting. that any OF them
without exception could not pay dollar for dollar
The institutions are absolutely safe. Patrons could
not desire greater reliability than the local concerns
insure. The deposits We're worth par and interest
last week, last month. last year. and during the
hard times of 1893. The deposits were worth par
and interest during the excitement this week. aud
they worth par and interest today. This is as
near certainty as anything can be in human al
fairs.
Had tine public not experienced emotional
strain and actual losses from the "gpt-rch-quck
machines which operated until recently. il is
likely that tie .udic;ous runners which produced
short-livcd runs would never have been entertained
Since the excitement has subsided. probably even
to n humor which viii permit them 10 enjoy their
own discontinue.
The rumors that the st. Louis trust companies
were in difficulties emanated from stock manipula
tors in Chicago and New York who We're selling
stocks short. These SPECTATORS desired 10 force
down prices and they hit upon the pan of disturb
ing the situation in 81. Louis. because. long aS
can be remembered. ST Louis has been looked upon
as the most solid. the most trustworthy and the
most conservative Of the large cities. If The sem
blance of a financial panic could have been brought
about here. conditions would be unsettled generally
and the shorts would reap profits.
on the face Of them 10 the trained business
mind the rumors We're utterly Grotesgue and in
credible. Common sense viii indicate. without ar
gument that the large trust companies of ST. Louis
need not send representatives 10 Chicago in order
to borrow money to meet demands. The presump-
ton is ridiculous and IS unworthy Of trifing
thought 1t is fact that the trust companies could
stand a from all of their small depOsitors. meet
all Withdrawals from This class of patrons and still
have funds hand.
But it would be injudicious for tEe companies 10
release the time deposits on demand and thereby
infame unreasonable excitement. 1t wise on
their part TO enforce the thirty and sixty days reg
ulations. not only TO alay the fear and give time
for sober consideration but TO give practical illus
traton of the relations which exist between the in
stitutions and their patrons.
The depositors receive three per cent on their
money. This percentage is profit 10 the deposItors
and Is paid by the companies. That the companies
could not pay the interest on deposits 10y keeping
all of the money in the vaults IS clear everybody.
The companies are enabled pay three per cent for
the reason that they judciously part Of the az
gregate OF the deposits 10 make profit.
There Is not financial institution in ST. Louis
which does not have sufficient funds on hand to
meet even unusual demands In fact. many Of them
could stand 4 concerted run. However. concerted
runs must be averted. and rs runs are almost al
ways precipitated by small deposiOrs. the clauses
requiring thirty and sixty days notice Of the in
tention to withdraw are inserted for the express
purpose of anordinS the companies ample time in
which 10 recall outstanding funds.
The temporary excitement is over now. and the
small depositors better able 10 understand that
their fears entirely groundless. The financial
institutions OF ST. Louis secure and ably
managed They are safe. The deposits are safe.
Those who were anxious and those who in
clined to become anxious calm. ST. Louis has 4
reputation for solidity and conservatism, and this
reputation is deserved. Pride in the ctyS honor.
interest in the city's welfare and consideration Of
their individual interests should completely stife un-
necessary and absurd alarm among small de-
positors.