Los Angeles herald., 1907-10-22
WALL STREET
RECOVERING
SITUATION BETTER. STOCKS ARE
STRONGER
BANKING SITUATION RIGHTED 3
CLEARING HOUSE
Prices Of Securities Start Upward ant
in Some Instances Retrieve
Points of Last Weeks
Decline
By Associated Press.

By Associated Press.
NEW YORK Oct 2i-The dilgent labors Of
the clearing house authorities during the closed
period of business over Sunday bore fruit today
in a prompt and decisive accession OF conf
dence The stock market righted itself like
ship over which squall had passed, ana
prices all through the list started upward. and
In some instances retrieved many points OF
last weeks decline.
The field Of the troubles in the ranks OF
the New York banks was generally understood
last week. but the force of the depression
which this exerted was caused by the fears
that the troubles must run to elimination
and threaten the involvement OF the general
banking situation.
A conviction was lacking of the power Of the
clearing house to right the difficulty. The
trouble was recognized to be one principaliy OIL
personal methods. and with the elimination OF
the persons objected to the Questionable meth
ods were believed to be effectively done away
with.
clearing house committee that the banks under
criticism had been found solvent after exam
inaton, ami that assistance would be rendered
them to meet their depositors, removed the
nriurrai; immediate consequences
Solid satisfaction was felt over the policy fol-
lowed by the clearing house In its wider scope
as we'll The lack of conservative banking
methods and the rapid extension of banking
control by the new element which has been
curbed has been a subject of disquiet for
long time past.
ors call "pyramiding," and by use OF one
hanks stock as collateral for securing control
OF another, rate of extension was threatened
which would involve wide consequences III tiihe
of financial stress
The United Copper episode last week. in
volving clumsy attempts at market manipula-
ton and employment of banking resources in
futile speculative maneuvers. proved the danger
signal The necessity of appeal for assistance
to the clearing house which grew out or tne
dIstrust aroused by that discreditabie episode
4taf0 t1a
house to dictate terms.
The outcome is regarded with satisfaction
which unmistakably registered in the day
event. including the buoyant rebound IN prices
of securities in the stock market. The opin-
ion of the financial world was of wisdom and
authority asserted for the betterment OF abuses.
The rebound in prices of stocks was attriDut-
able In large measure to the necessity of an
uncovered short interest which operated boldly
last week on the assumption that events were
running to a catastrophe. The demand beyond
this was under some reserve.
In the stiffness of the call loan rate was dis
cernible the efforts of the further purgine
process in the recall Of credits placed to the
lenders dissatisfaction. There was attention
given to reports of reduction of working forces
in manufacturing concerns and the subject OF
business recession was under consideration
There was offered for discussion also the un-
expected engagement on Saturday after stock
hours of 81 100000 gold for shipment to Ger
many. Although described as special trans
action, the fact tina. this gold was going oui
was an indication that similar call money rates
in New York at present are as much oues
tion of the register of the borrowers and col
lateral as scarcity of money. Foreign buyers
were active in this stock market today ano
this was factor in the sharp decline in for
eign exchange rates.
The slirnest reaction in prices of stocks late
in the day YVES due to profit taking and was
not regarded as rejecting any impairment OF
the restored confidence. The closing was strong
Bonds were irregular. Total sales, par value
ST. SSs 900. United States bonds were unchanged
on ell.