Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1907-10-31
CLEARING HOUSE
TRIES TO STEM TIDE
OF FINANCIAL DISASTER BY ISSU,
ING CERTIFICATES.
AN ACTION SELDOM TAKEN.
Six Banks and Trust Companies in
Brooklyn and Vicinity Suspended
Payment Friday-Savines Banks
Enforce 6o-Day Rule.

New York City.-Friday was an
other nerve-racking day, but the finan-
cial institutions of New York showed
extraordinary power of resistance to
the pressure put upon them While
several minor institutions were forced
TO close their doors, yet two things
should be said about them-first, that
the amount involved was not so great
as to exert any marked influence on
the general situation, as these banks
were located in residential quarters
and did not come in touch with the
larger financial institutions of the
metropolis; second, that there is
every reason to believe that these
banks and trust companies are en-
tireiy solvent and their difficulties will
prove to be only temporary and due
entirely to inability to secure ready
cash.
In the light OF the general excite
ment the savings banks put into eff
feet the rule requiring 80 to 60 days
notice for the withdrawal of deposits.
The institutions which closed their
doors Friday, with the sums due de-
positors, were: The United States Ex-
change bank, Harlem. $500 900.
International Trust Co., about $780,
900.
The Borough bank, of Brooklyn, s4,-
600 900.
The Brooklyn bank, $4,000, 900.
Williamsburg Trust Co., Brooklyn,
$500, 900.
The First National Bank of Brook
lyn, $3,500,000.
The First National Bank of Brook
lyn, the Williamsburg Trust Co. and
the international Trust Co were allied
institutions. None of these companies
had any important business connec-
tions with the larger banks.
On the other hand a number of
favorable features marked the day.
The Trust Company of America and
the Lincoln Trust Co.. the two organi-
cations which have suffered most from
runs, closed the day with all demands
having been met
The most favorable incident of the
day was that the stock exchange was
provided with funds ample to meet
its immediate necessities by a money
pool headed by J. p. Morgan, which
sent about S15, 100000 to the exchange
during the afternoon. The stock mar
ket had held relatively firm all day.
but when the pool money was offered
in the loan corner there was an i'm
mediate upturn of prices and the mar
ket closed strong.
A further encouraging development.
the good effect of which can scarcely
be overestimated, was the decision to
issue clearing house certificates
There will be meeting of the Clear
ing House association to-day for the
purpose of taking official action for
the issuance of these certificates. The
immediate effect of this will be to en-
able the banks to settle the balances
between. themselves with these GER
tificates and thereby release large
sums of currency for the regular
needs of business. The decision to is
sue clearing house certificates is like
ly to end any further anxiety in re-
gard to the supply of currency.
The first issue of clearing house GER
tificates was in 1860 and there were
several issues during the war. Other
issues occurred in 1873 and 1884. The
last occasion on which they were
aVailed of was in 1893.