Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-10-28
Vigorous Work of Powerful
Leader Finally Brings Order
Out of Last Weeks Chaotic
Conditions,
HYSTERlCAL DEP0SlT0RS
NO LONGER DEMAND MONEY
Confidence That Worst is Over
Thoroughly PervadeS Finan-
ciaI Circles Good May Fol-
low Recent Furry,
my Morning Journal Special Leased wire.

NY Morning journal Special Leased Wire
New York oct 27.-The chaotic
conditions which existed at one time
last week in New York had entered
upon improvement before the week
ended. and confidence was growing
that the worst had been seen man
was found who could ride In the
whlrlwind and disregard the storm.
and by common consent the leaders
In the finance subordinated their ac-
tions 20 the guidance OF ]. Pierpont
| Morgan, With affairs thus submitted
/ 10 the direction OF a central intelli-
gence, much was already gained for n
readjustment Tho position began 10
7 define itself as the dissolving ele-
I ments IN a solution are made to crys-
tallize around center. The situa-
tion that began To emerge was found
not so hopeless as had been feared.
the prevalent features indeed having
risen To- the stage of unreason and
hysteria among depositors IN the in
stitutiuus which were subjected to
runs However lacking In reason, the
condition thus preCipitated was suffi-
ciently serious and the various indicn-
tons Of this were striking and often
sensational The pressure on credits
even in the expanded condition to
which they had attained. had become
severe. every barometer having re-
Elected this for many months past.
The events In New York precipitated
into the situation resulted in a draw
ing down nf deposits IN banks and
trust companies thus diminishing the
very hasis Of the volume Of credits.
I The consequence was violent con-
traction OF credits. which proved a
blight on values where II touched. The
task confronting the financial gen-
erals In New York was TO limit as FAR
as possible the field of operations ~
those contracti0ns Of credit The Sec
retary of the treasury came into co..
operation with the great capitalists NJ
the country to supply resources for
meeting the crisis.
The requirement was q heavy one.
owing 10 the contagious nature Of the
financial fright and the general move
ment which followed among banking
institutions to fortify themselves even
beyond their needs Millions Of
ready money had 20 be thrown into
the vaults of the trust companies
which were sustaining run. while de-
mands were made on the banks by
other trust companies which had
funds on deposit with the banks. As
the ANfhA ff IfNFIANiN AfNAfA VI ANNF
country. New York banks are subject
ed 90 similar demands from all over
the country during a period Of threat
cning money conditions. The Cousc-
qucnce was that credit IN certain do
pHrtments nf The money market was
practically parslyzed This was true
90 operations in the stock market
where q condition of deadlock had de-
tclnped by Thursday. which was only
D. H.s. NJ
on ,au whom the traders were l1
greatest need ot &c.
t b. not expected that affairs will
-uh-Ids Immediately into placidlty
after .n violent uu uphcaval. The
topping uf offending members u the
financial body has made wide prog
ross. aud tine removal uf threatening
factor Boo the New York banking sit
nation Is viewed with qualification hy
aII friends of soiidity and safety iu
banking Even greater qualification
IS frU over the opening % the way
tu reform Tie New York trust come
many situation. orderly cooperation
AND mutual assistance among the
powerful Institutions are iu themselves
Important achievements and notable
additions ta the foriifNing OF the
whole financial fabric. These meas
urr. have sprung up full grown out
nf ihe weeks situation. Provision for
80 tafrmftic Information of the actual
condition of the trust cnmpauics and
periodical reports 81 this 90 their own
central authority. in the manner ~
fh. clearing house committee among
fhs banks. are safeguards that every
banker iu the country viii regard with
.lr..fHffinn.
rhe close ~ the acek found con-
ffenre maintained IN the efficiency
~ tre measures adopted The Satur-
HHv bank statement while rcpresent-
inr small deficit below thc legal re-
sar.e requirements. exhibited no such
depletion 81 available banking re-
snurres a. would threaten perma-
neut paralysis The Inauguration ~
gold Imports from London is regarded
a. certain O. have an important effect
on relaxation nf the strain The au-
thurity granted the clearing house
committee sn Saturday to issue clear
iur huu-f certificates Is regarded ~