The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-28

point, practice and experience beng the
only teachers capable OF conveying to you
a full knowledge and understanding OF It.
possibilities The power OF cohesion Is
further illustrated IN the clearing house
iaea by the use oil loan certificates re-
sorted to on several occasions by the New
York and even other clearing houses IN
times OF great stress, relieving situations
which otherwise might have been fraughL
with dangers and results beyond computa-
ton. This has been done without au-
thority of law, but under such clrcum-
stances that necessity was recognized as
superior to law, the ends to be obtained
valued for the practical results, and the
law honored in the breach rather than
its observance. Let US hope that the
time may not be far distant when sound
and much-needed legislation may relieve
the necessity OF such make-shifts which
have been resorted to for want OF some
thing better, but which may be tried once
too often and prove our undoing.
Confidence, that bulwark without which
the wheels OF finance and CONNER ce would
stand still, can be preserved by com
nIunity of interests, when individual banks
assailed singly III detail might succumb
TO that disturber Of the peace, distrust.
In times Of stress, idle rumors have fire.
quently grown. apparently, into the most
astounding facts, sapping the credit of
some solvent institution. No bank, how
ever good, can pay its depositors in a
day and an unreasoning demand from
them that it shall do SO, could only result
in diaaster TO all concerned. Without my
going into details, clearing house, under
such circumstances, lntervenes, examines
the institution under question, announces
it is solvent and that the other members
will stand by it, and presto, confidence Is
restored, the tide of business resumes it's
way and the incident is forgotten. II
needs no orator to picture the reverse
side of this picture.
The successful liquidation of Barring
Brothers and Company in 1890 by the
Bank of England, other banks and bank
ers of London is probably the most
striking instance of modern times illus
trating the possibility for good of the
combined action by coterie OF indlvidu-
ais There was no clearing house or other
organization in this case, but concerted
action among the banks which joined in
il simply for that specific purpose. Barring
Brothers and Company failed for seventy
five millions of dollars and if their at
fairs had not been liquidated in the
manner they were, the wreck and disas-
ter which would have resulted would pro
badly have been without parallel in his.
tory. The managers for the banks which
joined in the scheme OF liquidation man
aged their affairs however, so successful
~ that every claim was paid in full and
a considerable sum returned to the mem
hers OF the firm. Lord Lldderdale, then
Governor of the Bank of England, and
his associates, deserve monument from
the bankers of the world in commemora-
ton of their services.
Passing hurriedly on, we come to the
next and more recent form n which the
organization of banks ha and is
growing to its fullest fruition, our bank
ers' associations Do | .-sed to say even
word to the men of brains before me.